Micron Technology (NASDAQ:MU) Stock Rating Upgraded by CLSA

Key Points

• CLSA upgraded Micron Technology to “moderate buy,” adding to broadly positive analyst sentiment. Forty-one analysts rate the stock a Buy and five rate it a Hold, with a consensus price target of $1,385.93.
• Micron reported quarterly EPS of $33.42 versus the $31.77 consensus estimate, while revenue reached $54.23 billion, up 379.1% year over year. The company also issued strong fiscal Q1 2027 earnings guidance, supported by robust AI-related memory demand.
• Despite strong fundamentals and institutional ownership of 80.84%, insiders sold approximately $90.9 million of stock over the past 90 days. Investors also remain cautious that elevated margins and memory pricing could weaken if industry capacity increases or demand slows.

Micron Technology (NASDAQ:MU - Get Free Report) was upgraded by research analysts at CLSA to a "moderate buy" rating in a research note issued on Friday, Zacks reports.

A number of other equities research analysts also recently weighed in on the company. Bank of America raised their target price on Micron Technology from $950.00 to $1,500.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Wells Fargo & Company lowered their price target on Micron Technology from $1,525.00 to $1,400.00 and set an "overweight" rating for the company in a report on Wednesday, September 23rd. William Blair set a $1,300.00 price objective on Micron Technology in a research report on Thursday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Micron Technology in a research note on Thursday. Finally, New Street Research upgraded Micron Technology from a "neutral" rating to a "buy" rating and lifted their target price for the company from $470.00 to $1,250.00 in a research report on Friday, August 14th. Forty-one investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $1,385.93.

Micron Technology Price Performance

Shares of NASDAQ:MU opened at $1,074.89 on Friday. The firm has a 50 day moving average of $957.97 and a 200-day moving average of $820.68. Micron Technology has a 12 month low of $179.61 and a 12 month high of $1,255.00. The company has a current ratio of 3.31, a quick ratio of 2.98 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $1.21 trillion, a PE ratio of 14.48, a PEG ratio of 0.68 and a beta of 2.22.

Micron Technology (NASDAQ:MU - Get Free Report) last posted its quarterly earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $31.77 by $1.65. The business had revenue of $54.23 billion for 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 firm's revenue for the quarter was up 379.1% on a year-over-year basis. During the same quarter last year, the business posted $3.03 EPS. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. On average, equities research analysts predict that Micron Technology will post 160.39 EPS for the current fiscal year.

Insider Activity

In related news, CEO Sanjay Mehrotra sold 40,000 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the sale, the chief executive officer owned 264,503 shares of the company's stock, valued at $256,276,956.70. This trade represents a 13.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Sumit Sadana sold 15,000 shares of the business's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $934.29, for a total value of $14,014,350.00. Following the sale, the executive vice president owned 191,021 shares in the company, valued at $178,469,010.09. This represents a 7.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 95,879 shares of company stock worth $90,939,466. Insiders own 0.24% of the company's stock.

Institutional Trading of Micron Technology

Hedge funds have recently made changes to their positions in the company. Kohmann Bosshard Financial Services LLC acquired a new stake in Micron Technology during the 1st quarter worth approximately $27,000. Bullseye Investment Management LLC acquired a new position in Micron Technology in the 2nd quarter valued at approximately $27,000. Bayban acquired a new position in Micron Technology in the 4th quarter valued at approximately $29,000. Financial Life Planners bought a new position in shares of Micron Technology during the first quarter valued at $36,000. Finally, Portus Wealth Advisors LLC bought a new position in shares of Micron Technology during the first quarter valued at $37,000. 80.84% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Micron Technology

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

• Positive Sentiment: Record earnings and stronger guidance: Micron reported $54.23 billion in quarterly revenue, up 379% year over year, and adjusted EPS of $33.42, exceeding expectations. Its fiscal Q1 2027 outlook—approximately $61.5 billion in revenue and $38.15 in adjusted EPS at the midpoint—also topped analyst forecasts. Micron Technology Tops Lofty Fiscal Q4 Goals, Guides Above Views
• Positive Sentiment: AI demand remains powerful: High-bandwidth memory, data-center products and NAND pricing drove the results, while management said more than 75% of 2027 output is already committed. Customer discussions are extending into 2028, supporting expectations for sustained tight supply and pricing power. Micron’s Earnings Reveal Why the AI Memory Boom May Last Longer
• Positive Sentiment: Visibility and capital returns: Strategic customer agreements cover more than 35% of projected 2030 revenue, backed by roughly $32 billion in customer commitments. Micron also plans to increase share repurchases after reaching its cash target, potentially providing an additional catalyst. Micron Plans to Put Its Excess Cash Into Buybacks
• Positive Sentiment: Analyst optimism: Several firms raised targets, including DA Davidson at $2,100, Cantor Fitzgerald at $2,000 and Rosenblatt at $1,900, citing a potentially longer AI memory cycle.
• Neutral Sentiment: Longer-term opportunities: Micron sees additional memory demand from humanoid robots, autonomous vehicles and other “physical AI” applications later this decade. The company also declared a $0.15 quarterly dividend, with October 14 the ex-dividend date.
• Negative Sentiment: Cycle and margin concerns are limiting the reaction: Investors worry that current pricing and the 87% gross margin are unsustainably high for a cyclical semiconductor business. Analysts caution that additional industry capacity or slowing memory prices in 2027 could pressure earnings.
• Negative Sentiment: Expectations are elevated: After a dramatic rally, even a major beat has produced profit-taking. Heavy planned capital spending, broader market pressure from rising Treasury yields and a bearish options position disclosed by Michael Burry are adding volatility.

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.

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