Micron Technology (NASDAQ:MU) Shares Down 1.1% – Here’s What Happened

Micron Technology, Inc. (NASDAQ:MU) shares traded down 1.1% during trading on Monday. The company traded as low as $1,055.56 and last traded at $1,062.8780. Approximately 17,735,869 shares traded hands during trading, a decline of 58% from the average daily volume of 41,755,516 shares. The stock had previously closed at $1,074.89.

Micron Technology News Roundup

Here are the key news stories impacting Micron Technology this week:

• Positive Sentiment: Micron reported $54.23 billion in quarterly revenue, up roughly 379% year over year, and adjusted EPS of $33.42, exceeding consensus estimates. Management also issued strong fiscal first-quarter 2027 guidance, supporting the view that AI-related memory demand remains robust. Micron Posts 87% Gross Margins
• Positive Sentiment: Analysts and commentators point to approximately 87% gross margins, substantial free-cash-flow generation, strategic customer agreements and tightening supply as evidence that Micron’s current upcycle could extend through fiscal 2027 and 2028. Micron Bullish Outlook
• Positive Sentiment: Micron is accumulating cash at an unusually high rate, and restrictions related to the CHIPS Act are scheduled to expire on December 9. That could give the company greater flexibility to restart or expand share repurchases, creating a potential catalyst for MU. Micron CHIPS Act Buyback Date
• Neutral Sentiment: Micron’s valuation remains attractive relative to its earnings growth, but several articles note that the stock’s dramatic one-year advance has already priced in much of the near-term good news. Is Micron a Buy Now?
• Negative Sentiment: Investors are concerned that memory prices and margins may be near a cyclical peak. Forecasts calling for slower growth in fiscal 2028 are weighing on the market’s response despite the latest earnings beat. Memory Price Forecasts
• Negative Sentiment: Rising short volume indicates that bearish traders are increasing positions, reflecting skepticism about supply growth, future pricing power and the inherently cyclical memory business. Micron Short Volume

Wall Street Analysts Forecast Growth

MU has been the topic of several research reports. Rosenblatt Securities upped their target price on Micron Technology from $1,500.00 to $1,900.00 and gave the stock a “buy” rating in a research report on Thursday. Needham & Company LLC reiterated a “buy” rating and set a $1,650.00 price target on shares of Micron Technology in a report on Thursday. Wolfe Research set a $1,500.00 price target on Micron Technology in a research note on Thursday, June 25th. Zacks Research downgraded Micron Technology from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 19th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $1,500.00 price objective on shares of Micron Technology in a research report on Thursday. Forty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, Micron Technology presently has an average rating of “Moderate Buy” and an average target price of $1,385.93.

Micron Technology Stock Down 1.1%

The firm’s 50-day simple moving average is $957.97 and its 200-day simple moving average is $823.35. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.94 and a current ratio of 3.31. The company has a market capitalization of $1.20 trillion, a price-to-earnings ratio of 14.32, a price-to-earnings-growth ratio of 0.20 and a beta of 2.22.

Micron Technology (NASDAQ:MU) last issued its quarterly earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $31.77 by $1.65. The firm had revenue of $54.23 billion for the quarter, compared to analyst estimates of $51.33 billion. Micron Technology had a return on equity of 92.62% and a net margin of 63.80%.The company’s quarterly revenue was up 379.1% compared to the same quarter last year. During the same period in the previous year, the company posted $3.03 earnings per share. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. Sell-side analysts forecast that Micron Technology, Inc. will post 165.51 earnings per share for the current year.

Micron Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, October 14th will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend is Wednesday, October 14th. Micron Technology’s dividend payout ratio is 0.81%.

Insiders Place Their Bets

In other Micron Technology news, EVP Sumit Sadana sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total transaction of $14,014,350.00. Following the completion of the transaction, the executive vice president owned 191,021 shares in the company, valued at $178,469,010.09. This trade represents a 7.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Sanjay Mehrotra sold 40,000 shares of Micron Technology stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $968.90, for a total value of $38,756,000.00. Following the sale, the chief executive officer directly owned 264,503 shares in the company, valued at $256,276,956.70. The trade was a 13.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 95,879 shares of company stock worth $90,939,466 over the last quarter. Company insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Micron Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Kohmann Bosshard Financial Services LLC acquired a new position in Micron Technology in the first quarter worth $27,000. Bullseye Investment Management LLC bought a new stake in shares of Micron Technology during the second quarter worth $27,000. Bayban acquired a new stake in shares of Micron Technology in the fourth quarter valued at $29,000. Financial Life Planners acquired a new stake in shares of Micron Technology in the first quarter valued at $36,000. Finally, Portus Wealth Advisors LLC bought a new position in shares of Micron Technology in the first quarter valued at about $37,000. 80.84% of the stock is currently owned by institutional investors and hedge funds.

Micron Technology Company Profile

Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, three-dimensional XPoint-related technologies, solid-state drives, and high-bandwidth memory products designed for demanding computing applications.

The company serves customers across the data center, artificial intelligence, networking, automotive, industrial, mobile, consumer electronics, and embedded markets.