Micron Technology (NASDAQ:MU) Stock Jumps 3% After Strong Earnings

Micron Technology, Inc. (NASDAQ:MU)’s stock price rose 3% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $1,098.90 and last traded at $1,097.39. 44,653,044 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 41,947,691 shares. The stock had previously closed at $1,065.11.

The semiconductor manufacturer reported $33.42 earnings per share for the quarter, topping the consensus estimate of $31.72 by $1.70. Micron Technology had a return on equity of 71.13% and a net margin of 55.91%.The firm had revenue of $54.23 billion during the quarter, compared to the consensus estimate of $51.33 billion. During the same period last year, the company earned $3.03 earnings per share. The company’s revenue for the quarter was up 379.1% on a year-over-year basis. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS.

Micron Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 29th. Shareholders of record on Wednesday, October 14th will be given a dividend of $0.15 per share. The ex-dividend date is Wednesday, October 14th. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. Micron Technology’s dividend payout ratio is presently 1.36%.

Key Micron Technology News

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

• Positive Sentiment: Micron reported fiscal Q4 adjusted EPS of $33.42 and revenue of $54.23 billion, surpassing consensus estimates of $31.72 and $51.33 billion, respectively. Revenue surged 379% year over year, supported by AI-related data-center demand and stronger DRAM and NAND pricing. Micron beats on revenue and earnings as global memory shortage continues
• Positive Sentiment: Fiscal Q1 2027 guidance was well above Wall Street expectations, with revenue projected at $60 billion to $63 billion and EPS at $37.15 to $39.15. Management said more than 75% of expected 2027 output is already committed, while supply constraints may persist through 2028. Micron forecasts quarterly revenue above estimates
• Positive Sentiment: Analysts raised price targets following the report, including targets of $1,500 from RBC, $1,600 from TD Cowen, $1,900 from Rosenblatt, $2,000 from Cantor Fitzgerald and $2,100 from DA Davidson. Strategic customer agreements and long-term commitments also improve revenue visibility. Micron analysts stay bullish after another beat and raise
• Neutral Sentiment: The broader technology sector received support from Micron’s results, but sharply higher Treasury yields and inflation concerns pressured the overall market, limiting the stock’s response to the earnings beat. Global markets rattled as bond yields surge
• Negative Sentiment: Investors may be taking profits after MU’s extraordinary run, while the stock is priced for near-perfect execution. Q1 gross-margin guidance of approximately 86.25% was slightly below the recent quarter’s 87%, raising concerns that peak pricing power could moderate. Why Micron’s 87% gross margin is a blessing and a curse
• Negative Sentiment: A potential strike at Micron’s Taiwan operations introduces execution and supply-chain risk. Investors are also monitoring heavy capital spending, cyclical memory pricing and bearish positioning from investors such as Michael Burry.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on MU shares. The Goldman Sachs Group set a $1,250.00 price target on shares of Micron Technology in a research note on Thursday. Wedbush restated an “outperform” rating and issued a $1,400.00 price objective on shares of Micron Technology in a research report on Monday. New Street Research upgraded shares of Micron Technology from a “neutral” rating to a “buy” rating and raised their price objective for the company from $470.00 to $1,250.00 in a research report on Friday, August 14th. Raymond James Financial reaffirmed an “outperform” rating on shares of Micron Technology in a report on Thursday. Finally, William Blair set a $1,300.00 target price on Micron Technology in a research report on Thursday. Forty equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Micron Technology presently has an average rating of “Moderate Buy” and a consensus price target of $1,378.08.

Insider Activity

In other Micron Technology news, EVP Sumit Sadana sold 15,000 shares of the company’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 transaction, the executive vice president directly owned 191,021 shares in the company, valued at approximately $178,469,010.09. This represents a 7.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Scott R. Allen sold 879 shares of the company’s stock in a transaction dated Thursday, July 23rd. The stock was sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the transaction, the chief accounting officer owned 34,958 shares in the company, valued at $34,958,000. The trade was a 2.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,879 shares of company stock worth $90,939,466 in the last 90 days. 0.24% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Micron Technology

Institutional investors have recently modified their holdings of the company. Andar Capital Management HK Ltd increased its stake in Micron Technology by 856,960.3% in the 2nd quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock valued at $39,571,847,000 after purchasing an additional 34,278,413 shares in the last quarter. Primecap Management Co. CA purchased a new stake in Micron Technology during the second quarter worth $22,182,263,000. Bank of America Corp DE boosted its position in Micron Technology by 26.6% during the second quarter. Bank of America Corp DE now owns 10,174,757 shares of the semiconductor manufacturer’s stock worth $11,744,621,000 after purchasing an additional 2,136,470 shares in the last quarter. Legal & General Group Plc acquired a new stake in Micron Technology in the second quarter valued at $8,402,393,000. Finally, Wellington Management Group LLP grew its holdings in Micron Technology by 28.7% in the second quarter. Wellington Management Group LLP now owns 5,045,141 shares of the semiconductor manufacturer’s stock valued at $5,823,556,000 after purchasing an additional 1,125,414 shares during the last quarter. Hedge funds and other institutional investors own 80.84% of the company’s stock.

Micron Technology Trading Up 3.0%

The firm has a market cap of $1.24 trillion, a PE ratio of 24.84, a PEG ratio of 0.67 and a beta of 2.22. The business has a 50-day moving average price of $952.75 and a two-hundred day moving average price of $814.16. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.42 and a quick ratio of 2.98.

About Micron Technology

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.