Micron Technology (NASDAQ:MU) Trading Down 2.2% - Here's Why

Key Points

• Micron Technology shares dropped 2.2% to $202.29, with trading volume down 42% compared to the average.
• Analysts have raised price targets for Micron, with upgrades from several firms, including a rating increase from Deutsche Bank to $200 and from Wedbush to $220.
• The company reported earnings of $2.86 per share, meeting expectations, with a revenue increase of 46.1% year-over-year to $11.32 billion.

Micron Technology, Inc. (NASDAQ:MU - Get Free Report) shares dropped 2.2% on Tuesday . The company traded as low as $200.84 and last traded at $202.29. Approximately 13,623,660 shares changed hands during mid-day trading, a decline of 42% from the average daily volume of 23,387,387 shares. The stock had previously closed at $206.77.

Analyst Upgrades and Downgrades

MU has been the subject of several research reports. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Micron Technology from $175.00 to $200.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. Wedbush increased their price target on Micron Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a research note on Wednesday, September 24th. Bank of America boosted their price objective on Micron Technology from $140.00 to $180.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 24th. KeyCorp upped their target price on Micron Technology from $160.00 to $215.00 and gave the stock an "overweight" rating in a report on Wednesday, September 24th. Finally, Rosenblatt Securities lifted their price target on Micron Technology from $200.00 to $250.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. Five research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Micron Technology currently has an average rating of "Buy" and an average price target of $200.64.

Micron Technology Price Performance

The company has a fifty day simple moving average of $152.86 and a 200 day simple moving average of $119.00. The stock has a market capitalization of $227.06 billion, a price-to-earnings ratio of 26.65, a P/E/G ratio of 0.45 and a beta of 1.56. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.79 and a current ratio of 2.52.

Micron Technology (NASDAQ:MU - Get Free Report) last issued its quarterly earnings data on Tuesday, September 23rd. The semiconductor manufacturer reported $2.86 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $2.86. Micron Technology had a return on equity of 17.21% and a net margin of 22.84%.The company had revenue of $11.32 billion during the quarter, compared to the consensus estimate of $11.05 billion. During the same period last year, the company earned $1.18 earnings per share. The firm's revenue was up 46.1% compared to the same quarter last year. Micron Technology has set its Q1 2026 guidance at 3.600-3.900 EPS. Equities research analysts forecast that Micron Technology, Inc. will post 6.08 EPS for the current fiscal year.

Micron Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 21st. Stockholders of record on Friday, October 3rd will be paid a $0.115 dividend. This represents a $0.46 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Friday, October 3rd. Micron Technology's dividend payout ratio is currently 6.06%.

Insider Transactions at Micron Technology

In related news, CEO Sanjay Mehrotra sold 21,563 shares of Micron Technology stock in a transaction on Tuesday, October 7th. The shares were sold at an average price of $188.47, for a total transaction of $4,063,978.61. Following the completion of the transaction, the chief executive officer owned 272,648 shares of the company's stock, valued at $51,385,968.56. This trade represents a 7.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP April S. Arnzen sold 15,000 shares of the company's stock in a transaction on Tuesday, September 30th. The shares were sold at an average price of $164.04, for a total transaction of $2,460,600.00. Following the sale, the executive vice president directly owned 131,580 shares in the company, valued at $21,584,383.20. This trade represents a 10.23% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 112,956 shares of company stock worth $19,124,145 over the last three months. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Micron Technology

A number of hedge funds have recently added to or reduced their stakes in MU. Proffitt & Goodson Inc. lifted its stake in Micron Technology by 1.3% in the third quarter. Proffitt & Goodson Inc. now owns 9,968 shares of the semiconductor manufacturer's stock valued at $1,668,000 after buying an additional 131 shares during the period. Global Retirement Partners LLC lifted its position in shares of Micron Technology by 21.6% during the 3rd quarter. Global Retirement Partners LLC now owns 18,972 shares of the semiconductor manufacturer's stock valued at $3,174,000 after acquiring an additional 3,375 shares during the period. Fulton Bank N.A. lifted its position in shares of Micron Technology by 15.1% during the 3rd quarter. Fulton Bank N.A. now owns 9,036 shares of the semiconductor manufacturer's stock valued at $1,512,000 after acquiring an additional 1,184 shares during the period. Financiere des Professionnels Fonds d investissement inc. bought a new position in Micron Technology during the third quarter worth $1,661,000. Finally, Synergy Asset Management LLC acquired a new stake in Micron Technology in the third quarter worth $14,638,000. 80.84% of the stock is currently owned by institutional investors.

Micron Technology Company Profile

Micron Technology, Inc designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels.

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