Micron Technology (NASDAQ:MU) Trading Up 3% - What’s Ahead?

Micron Technology, Inc. (NASDAQ:MU - Get Free Report) saw its share price increase by 3% during mid-day trading on Tuesday. The stock reached a high of $103.68 before settling at $101.50. In total, around 10,865,945 shares were traded, which is a significant decline of 49% compared to the average daily volume of 21,377,746 shares. The stock closed at $98.55 the previous day.

Micron Technology Alerts

Analysts Share Their Views

Several analysts recently provided insights about Micron Technology. UBS Group cut their price target for the company from $153.00 to $135.00 while maintaining a "buy" rating as of September 17. On the other hand, Wedbush reaffirmed an "outperform" rating and a price target of $140.00 in a report dated September 26. Cantor Fitzgerald also kept an "overweight" rating on the stock with a price target of $150.00 following their analysis on October 1. Additionally, Wells Fargo reduced their price target from $190.00 to $175.00 and kept an "overweight" rating. Lastly, Needham & Company reiterated a "buy" rating with a $140.00 price objective on September 26. In total, the stock has received one sell recommendation, two hold ratings, and a notable twenty-six buy recommendations. According to MarketBeat, Micron holds an average rating of "Moderate Buy" with an average target price of $143.04.

Latest Stock Analysis on Micron Technology

Performance Snapshot

The company's fifty-day simple moving average stands at $103.60, while the 200-day average is at $111.32. Micron's current ratio is 2.64, with a quick ratio of 1.68 and a low debt-to-equity ratio of 0.29. The firm boasts a market capitalization of $112.27 billion, a P/E ratio of 149.27, and a beta of 1.16.

Earnings Report Highlights

Micron Technology released its earnings report on September 25, revealing earnings of $1.18 per share for the quarter, surpassing analysts' expectations of $0.97 by $0.21. The company reported revenue of $7.75 billion, exceeding the consensus estimate of $7.65 billion. Notably, this represented a remarkable year-over-year revenue increase of 93.3%. In the same quarter of the previous year, the company faced a loss, earning ($1.21) EPS. Analysts predict that Micron Technology will finalize the current year with an EPS of 8.31.

Dividend Announcement

Recently, the company declared a quarterly dividend, which has already been disbursed on October 23. Shareholders of record on October 7 received a dividend of $0.115, while the ex-dividend date was set for the same day. This translates to an annualized dividend yield of 0.46%, with Micron's current payout ratio sitting at 67.65%.

Insider Trading Activity

In related news, Executive Vice President April S. Arnzen sold 4,890 shares of Micron’s stock on September 26, at an average price of $113.00, totaling $552,570. After the sale, Arnzen retained ownership of 135,830 shares, valued at approximately $15,348,790. This transaction reflected a 3.47% decrease in their holdings. The details were disclosed in a filing with the SEC.

Institutional Investment Trends

A variety of institutional investors have been active in buying and selling shares of Micron Technology. Hobbs Group Advisors LLC entered a new position in the second quarter worth roughly $28,000, while Highline Wealth Partners LLC acquired shares in the third quarter valued around $26,000. Richard W. Paul & Associates increased its stake by 128.6% during the second quarter. The firm now holds 256 shares worth $34,000 after adding 144 shares recently. LRI Investments LLC raised its holdings in Micron by 57.2% in the second quarter, currently owning 272 shares valued at $36,000. Overall, 80.84% of Micron Technology’s shares are owned by institutional investors and hedge funds.

About Micron Technology

Micron Technology, Inc. specializes in the design, development, manufacture, and sale of memory and storage products on a global scale. The company operates through various segments, including Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. The firm offers a range of memory and storage technologies, such as dynamic random access memory devices, non-volatile storage devices, and fast read speed semiconductor memory devices, marketed under the Micron and Crucial brands as well as private labels.

Conclusion

With various analysts rating Micron Technology positively and the company's strong recent earnings, investors may consider whether now is the right time to buy. However, investors are advised to assess their strategies and possibly explore other options if Micron does not meet their investment criteria.

Micron, Stocks, Investment