Micron Technology's (MU) Outperform Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its “Outperform” rating on Micron Technology and set a $1,500 price target, implying 45.05% upside from the prior close. Analysts overall maintain a “Moderate Buy” consensus, with an average target of $1,378.08.
• Micron reported a strong quarter, with $54.23 billion in revenue and $33.42 in EPS, both above estimates, driven by AI-related data-center and high-bandwidth memory demand. Management also issued above-consensus fiscal Q1 2027 EPS guidance of $37.15–$39.15.
• Despite bullish analyst sentiment and increased institutional ownership, the stock faces risks from its cyclical memory business, heavy capital spending, potential future supply increases and insider selling totaling about $90.9 million last quarter.

Micron Technology (NASDAQ:MU - Get Free Report)'s stock had its "outperform" rating reaffirmed by stock analysts at Royal Bank Of Canada in a note issued to investors on Thursday, Benzinga reports. They currently have a $1,500.00 target price on the semiconductor manufacturer's stock. Royal Bank Of Canada's target price would suggest a potential upside of 45.05% from the company's previous close.

Several other equities analysts have also recently weighed in on the company. Zacks Research cut Micron Technology from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 19th. TD Cowen reiterated a "buy" rating and set a $1,600.00 price objective (up from $1,500.00) on shares of Micron Technology in a research note on Wednesday, September 16th. Cantor Fitzgerald reiterated an "overweight" rating and set a $2,000.00 price objective on shares of Micron Technology in a research note on Thursday. HSBC boosted their price objective on Micron Technology from $1,100.00 to $1,700.00 and gave the company a "buy" rating in a research note on Thursday, June 25th. Finally, KeyCorp reiterated an "overweight" rating on shares of Micron Technology in a research note on Thursday. Forty investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $1,378.08.

Micron Technology Stock Performance

Shares of MU traded down $30.97 during mid-day trading on Thursday, hitting $1,034.14. The stock had a trading volume of 8,543,256 shares, compared to its average volume of 41,736,602. The firm has a market cap of $1.17 trillion, a P/E ratio of 23.37, a PEG ratio of 0.67 and a beta of 2.22. The business has a fifty day moving average price of $952.75 and a 200-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. Micron Technology has a 52 week low of $179.61 and a 52 week high of $1,255.00.

Micron Technology (NASDAQ:MU - Get Free Report) last issued its earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $31.72 by $1.70. 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 71.13% and a net margin of 55.91%.The business's revenue was up 379.1% on a year-over-year basis. 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. On average, equities research analysts expect that Micron Technology will post 73.12 EPS for the current year.

Insiders Place Their Bets

In other Micron Technology news, EVP Sumit Sadana sold 15,000 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total value of $14,014,350.00. Following the completion of the transaction, the executive vice president owned 191,021 shares of the company's stock, valued at $178,469,010.09. The trade was a 7.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Sanjay Mehrotra sold 40,000 shares of the business's stock in a transaction that occurred 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 completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,879 shares of company stock valued at $90,939,466 in the last quarter. Corporate insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Micron Technology

Several institutional investors have recently modified their holdings of MU. Greenwich Wealth Management LLC increased its position in shares of Micron Technology by 3.0% during the 2nd quarter. Greenwich Wealth Management LLC now owns 1,253 shares of the semiconductor manufacturer's stock valued at $1,446,000 after purchasing an additional 36 shares during the last quarter. QRG Capital Management Inc. boosted its stake in shares of Micron Technology by 5.0% in the 2nd quarter. QRG Capital Management Inc. now owns 216,617 shares of the semiconductor manufacturer's stock valued at $250,039,000 after purchasing an additional 10,384 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its stake in shares of Micron Technology by 317.5% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 39,606 shares of the semiconductor manufacturer's stock valued at $45,716,000 after purchasing an additional 30,119 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake in shares of Micron Technology by 14.6% in the 2nd quarter. Envestnet Asset Management Inc. now owns 756,236 shares of the semiconductor manufacturer's stock valued at $872,906,000 after purchasing an additional 96,472 shares in the last quarter. Finally, Silicon Valley Capital Partners boosted its stake in shares of Micron Technology by 12.3% in the 2nd quarter. Silicon Valley Capital Partners now owns 7,387 shares of the semiconductor manufacturer's stock valued at $8,527,000 after purchasing an additional 809 shares in the last quarter. 80.84% of the stock is currently owned by institutional investors.

Key Micron Technology News

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

• Positive Sentiment: Micron reported record fiscal Q4 revenue of $54.23 billion, up 379% year over year, and adjusted EPS of $33.42, exceeding consensus estimates of $51.33 billion and $31.72, respectively. Data-center demand and high-bandwidth memory sales tied to AI infrastructure were the primary growth drivers. Micron beats on revenue and earnings as global memory shortage continues
• Positive Sentiment: Management issued fiscal Q1 2027 revenue guidance of $60 billion-$63 billion and EPS guidance of $37.15-$39.15, both above Wall Street expectations. More than 75% of next year’s output is reportedly committed, while management expects tight memory supply to persist into 2027 and potentially 2028. Micron forecasts quarterly revenue above estimates
• Positive Sentiment: Analysts raised their outlooks following the results. D.A. Davidson lifted its price target to $2,100 from $2,000 with a Buy rating; Rosenblatt raised its target to $1,900 from $1,500; and Cantor Fitzgerald reiterated Overweight with a $2,000 target. These actions reinforce the bullish view on AI memory demand and pricing power. D.A. Davidson raises Micron forecast
• Neutral Sentiment: Micron declared a quarterly dividend of $0.15 per share, or $0.60 annualized, with payment scheduled for October 29. The dividend provides limited income support given the approximately 0.1% yield.
• Negative Sentiment: The muted share reaction reflects how much optimism was already priced in after a major rally. Investors are also focused on a slight sequential gross-margin decline in the forecast, aggressive capital spending, possible future supply increases and the cyclical nature of memory pricing. Michael Burry’s bearish put position and a Netlist complaint seeking to restrict imports of certain Micron chips add further uncertainty. Why Micron stock fell despite strong results

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.