Micron Technology (MU) Cut to Sell at Zacks Investment Research

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Zacks Investment Research lowered shares of Micron Technology (NASDAQ:MU) from a hold rating to a sell rating in a research report released on Friday.

According to Zacks, “Micron's top line is being negatively impacted by the falling demand for semiconductor chips. The U.S.-China trade war is keeping the company under pressure, as most of the demand for its products came from China. Moreover, expected decline in contract pricing for NAND does not bode well for Micron. Additionally, CPU shortages in the client compute market and inventory adjustments with some customers are near-term headwinds. Increasing competition in the industry also remains a concern for the company. Shares have underperformed the S&P 500 index in the year-to-date period. However, we are positive about the company’s strategy of enhancing its capabilities through acquisitions, which are likely to boost its top line in the long run. Estimates have been stable lately ahead of the company’s Q1 earnings release. The company has positive record of earnings surprises in recent quarters.”

Several other equities analysts have also issued reports on MU. Bank of America restated a buy rating and issued a $55.00 target price (down previously from $85.00) on shares of Micron Technology in a report on Friday. Macquarie set a $70.00 target price on shares of Micron Technology and gave the company a buy rating in a report on Friday, September 21st. Barclays dropped their target price on shares of Micron Technology to $60.00 and set an overweight rating on the stock in a report on Friday, September 21st. Wells Fargo & Co dropped their target price on shares of Micron Technology from $70.00 to $63.00 and set an outperform rating on the stock in a report on Wednesday, August 15th. They noted that the move was a valuation call. Finally, Needham & Company LLC dropped their target price on shares of Micron Technology from $100.00 to $80.00 and set a strong-buy rating on the stock in a report on Monday, September 24th. Four investment analysts have rated the stock with a sell rating, ten have issued a hold rating, nineteen have given a buy rating and two have given a strong buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $64.51.

Shares of Micron Technology stock traded down $2.36 during trading on Friday, hitting $35.31. The company’s stock had a trading volume of 30,599,900 shares, compared to its average volume of 25,587,500. The company has a quick ratio of 2.16, a current ratio of 2.79 and a debt-to-equity ratio of 0.11. Micron Technology has a 52 week low of $33.82 and a 52 week high of $64.66. The stock has a market cap of $42.73 billion, a price-to-earnings ratio of 2.99, a P/E/G ratio of 0.60 and a beta of 1.63.

Micron Technology (NASDAQ:MU) last issued its quarterly earnings data on Thursday, September 20th. The semiconductor manufacturer reported $3.53 earnings per share for the quarter, topping the consensus estimate of $3.33 by $0.20. Micron Technology had a net margin of 46.51% and a return on equity of 51.68%. The company had revenue of $8.44 billion for the quarter, compared to analysts’ expectations of $8.25 billion. During the same quarter in the previous year, the firm posted $2.02 earnings per share. Micron Technology’s revenue for the quarter was up 37.5% on a year-over-year basis. As a group, equities analysts anticipate that Micron Technology will post 9.86 earnings per share for the current fiscal year.

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Micron Technology by 1.4% during the 3rd quarter. Vanguard Group Inc. now owns 87,876,412 shares of the semiconductor manufacturer’s stock valued at $3,974,651,000 after acquiring an additional 1,176,989 shares during the period. AQR Capital Management LLC grew its position in shares of Micron Technology by 75.5% during the 3rd quarter. AQR Capital Management LLC now owns 28,530,556 shares of the semiconductor manufacturer’s stock valued at $1,290,438,000 after acquiring an additional 12,269,445 shares during the period. Capital World Investors bought a new position in shares of Micron Technology during the 3rd quarter valued at approximately $1,136,492,000. Dimensional Fund Advisors LP grew its position in shares of Micron Technology by 0.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 13,543,491 shares of the semiconductor manufacturer’s stock valued at $710,326,000 after acquiring an additional 40,694 shares during the period. Finally, Janus Henderson Group PLC grew its position in shares of Micron Technology by 15.8% during the 3rd quarter. Janus Henderson Group PLC now owns 9,500,254 shares of the semiconductor manufacturer’s stock valued at $429,725,000 after acquiring an additional 1,294,408 shares during the period. 74.46% of the stock is owned by institutional investors and hedge funds.

Micron Technology Company Profile

Micron Technology, Inc manufactures and sells memory and storage solutions worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It offers memory and storage technologies, including DRAM, NAND, NOR Flash, and 3D XPoint memory under the Micron, Crucial, and Ballistix brands, as well as private labels.

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