Micron Technology (NASDAQ:MU) Shares Down 1.1% – Should You Sell?

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

Key Stories Impacting Micron Technology

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 Analyst Weigh In

A number of brokerages have weighed in on MU. Zacks Research lowered Micron Technology from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 19th. JPMorgan Chase & Co. upped their target price on Micron Technology from $550.00 to $1,540.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Seaport Research Partners reiterated a “buy” rating on shares of Micron Technology in a research note on Friday, August 14th. Cantor Fitzgerald reissued an “overweight” rating and set a $2,000.00 price target on shares of Micron Technology in a research report on Thursday. Finally, Bank of America lifted their price target on shares of Micron Technology from $950.00 to $1,500.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Forty-one research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,385.93.

Micron Technology Price Performance

The firm has a market capitalization of $1.20 trillion, a P/E ratio of 14.32, a price-to-earnings-growth ratio of 0.20 and a beta of 2.22. The business has a fifty day moving average of $957.97 and a 200-day moving average of $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.

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

Micron Technology Dividend Announcement

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

Insider Activity at Micron Technology

In other Micron Technology news, CEO Sanjay Mehrotra sold 40,000 shares of the company’s stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 264,503 shares of the company’s stock, valued at approximately $256,276,956.70. This represents a 13.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Scott R. Allen sold 879 shares of Micron Technology stock in a transaction that occurred on 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 completion of the transaction, the chief accounting officer directly owned 34,958 shares in the company, valued at $34,958,000. This represents a 2.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 95,879 shares of company stock valued at $90,939,466 over the last 90 days. 0.24% of the stock is currently owned by corporate insiders.

Institutional Trading of Micron Technology

A number of large investors have recently added to or reduced their stakes in MU. Andar Capital Management HK Ltd boosted its stake in shares of Micron Technology by 856,960.3% during the 2nd quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock worth $39,571,847,000 after acquiring an additional 34,278,413 shares in the last quarter. Primecap Management Co. CA acquired a new position in shares of Micron Technology in the 2nd quarter valued at $22,182,263,000. Bank of America Corp DE increased its stake in Micron Technology by 26.6% in the 2nd 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. Invesco Ltd. increased its stake in Micron Technology by 1.6% in the 4th quarter. Invesco Ltd. now owns 9,777,239 shares of the semiconductor manufacturer’s stock worth $2,790,522,000 after purchasing an additional 155,073 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in Micron Technology during the 2nd quarter worth about $8,402,393,000. 80.84% of the stock is currently owned by institutional investors.

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.