Micron Technology (NASDAQ:MU) Shares Gap Up Following Strong Earnings

Key Points

• Micron shares gapped up after the company reported stronger-than-expected quarterly results, opening well above the prior close as investors reacted positively to the earnings beat.
• The company posted fiscal Q3 EPS of $25.11 versus estimates of $20.98 and revenue of $41.46 billion versus expectations of $35.91 billion, with revenue surging 345.8% year over year on AI-driven demand.
• Micron issued a bullish Q4 outlook, guiding for revenue of roughly $49 billion to $51 billion and EPS of $30 to $32, while analysts broadly raised price targets following the report.

Micron Technology, Inc. (NASDAQ:MU - Get Free Report) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $1,048.51, but opened at $1,233.00. Micron Technology shares last traded at $1,159.7630, with a volume of 19,057,146 shares.

The semiconductor manufacturer reported $25.11 earnings per share for the quarter, beating the consensus estimate of $20.98 by $4.13. The firm had revenue of $41.46 billion during the quarter, compared to the consensus estimate of $35.91 billion. Micron Technology had a return on equity of 41.16% and a net margin of 41.49%.The company's revenue was up 345.8% on a year-over-year basis. During the same period last year, the company earned $1.91 earnings per share. Micron Technology has set its Q4 2026 guidance at 30.000-32.000 EPS.

Micron Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 21st. Shareholders of record on Monday, July 6th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date is Monday, July 6th. Micron Technology's dividend payout ratio (DPR) is currently 2.83%.

Key Micron Technology News

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

• Positive Sentiment: Micron reported fiscal Q3 EPS of $25.11 and revenue of $41.46 billion, both well above estimates, with revenue up sharply from a year ago on surging AI-related demand. Article Title
• Positive Sentiment: The company gave a very bullish Q4 outlook, with revenue guidance of roughly $49 billion to $51 billion and EPS guidance of $30 to $32, signaling that AI-driven memory demand remains exceptionally strong. Article Title
• Positive Sentiment: Micron said customers have committed billions of dollars years in advance for future memory supply, reinforcing the idea that the company has pricing power and unusually tight supply conditions. Article Title
• Positive Sentiment: The strong report also lifted chipmakers worldwide, with investors viewing Micron’s results as evidence that the broader AI infrastructure boom is still intact. Article Title
• Neutral Sentiment: Micron also declared a quarterly dividend, but the payout is small and is unlikely to materially affect the stock’s near-term move. Article Title

Analysts Set New Price Targets

Several research firms recently issued reports on MU. Wolfe Research set a $1,500.00 price objective on Micron Technology in a research report on Thursday. JPMorgan Chase & Co. upped their price target on Micron Technology from $350.00 to $550.00 and gave the company an "overweight" rating in a report on Thursday, March 19th. UBS Group lifted their price objective on Micron Technology from $535.00 to $1,625.00 and gave the stock a "buy" rating in a report on Tuesday, May 26th. Bank of America boosted their target price on Micron Technology from $950.00 to $1,500.00 and gave the stock a "buy" rating in a research report on Tuesday. Finally, Cantor Fitzgerald upped their target price on shares of Micron Technology from $700.00 to $1,500.00 and gave the company an "overweight" rating in a research note on Monday, June 8th. Five research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Micron Technology has an average rating of "Buy" and a consensus price target of $1,106.47.

Insider Transactions at Micron Technology

In related news, CEO Sanjay Mehrotra sold 40,000 shares of the company's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $536.26, for a total transaction of $21,450,400.00. Following the completion of the sale, the chief executive officer owned 424,503 shares in the company, valued at approximately $227,643,978.78. This represents a 8.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP April S. Arnzen sold 40,000 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $347.39, for a total transaction of $13,895,600.00. Following the completion of the transaction, the executive vice president owned 125,737 shares in the company, valued at $43,679,776.43. This trade represents a 24.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 146,000 shares of company stock valued at $85,486,715. Corporate insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MU. Signature Equity Partners LLC boosted its holdings in Micron Technology by 6.3% in the 1st quarter. Signature Equity Partners LLC now owns 253 shares of the semiconductor manufacturer's stock worth $86,000 after buying an additional 15 shares during the period. Clearwater Capital Advisors LLC raised its holdings in Micron Technology by 1.1% during the first quarter. Clearwater Capital Advisors LLC now owns 1,617 shares of the semiconductor manufacturer's stock valued at $546,000 after acquiring an additional 18 shares during the period. Capital Advisors Ltd. LLC lifted its position in shares of Micron Technology by 10.3% in the first quarter. Capital Advisors Ltd. LLC now owns 247 shares of the semiconductor manufacturer's stock valued at $83,000 after acquiring an additional 23 shares in the last quarter. Manning & Napier Advisors LLC lifted its position in shares of Micron Technology by 2.4% in the fourth quarter. Manning & Napier Advisors LLC now owns 1,030 shares of the semiconductor manufacturer's stock valued at $301,000 after acquiring an additional 24 shares in the last quarter. Finally, Essex Bank boosted its stake in shares of Micron Technology by 2.0% in the first quarter. Essex Bank now owns 1,252 shares of the semiconductor manufacturer's stock worth $423,000 after acquiring an additional 24 shares during the period. 80.84% of the stock is currently owned by institutional investors.

Micron Technology Stock Performance

The company has a quick ratio of 2.32, a current ratio of 2.90 and a debt-to-equity ratio of 0.13. The business has a 50 day moving average price of $788.74 and a two-hundred day moving average price of $513.50. The stock has a market cap of $1.30 trillion, a P/E ratio of 54.68 and a beta of 2.16.

About Micron Technology

Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.

Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.

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