Micron Technology (NASDAQ:MU) Trading Up 1.1% on Better-Than-Expected Earnings

Key Points

• Micron Technology's shares rose by 1.1% following a better-than-expected quarterly earnings report, with earnings per share of $2.86, surpassing the consensus estimate of $2.77.
• The company announced a quarterly dividend of $0.115, resulting in an annualized dividend yield of 0.3% and a dividend payout ratio of 8.29%.
• Analysts have mixed ratings for Micron, with Zacks Research upgrading it to "strong-buy" while UBS Group raised its price target from $155 to $185, indicating confidence in the stock's performance.

Micron Technology, Inc. (NASDAQ:MU - Get Free Report) shares rose 1.1% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $168.99 and last traded at $166.41. Approximately 39,381,588 shares traded hands during trading, an increase of 72% from the average daily volume of 22,907,039 shares. The stock had previously closed at $164.62.

The semiconductor manufacturer reported $2.86 EPS for the quarter, topping the consensus estimate of $2.77 by $0.09. Micron Technology had a net margin of 18.41% and a return on equity of 13.60%. Micron Technology has set its Q1 2026 guidance at 3.600-3.900 EPS.

Micron Technology Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 22nd. Stockholders of record on Monday, July 7th were issued a $0.115 dividend. The ex-dividend date of this dividend was Monday, July 7th. This represents a $0.46 annualized dividend and a dividend yield of 0.3%. Micron Technology's dividend payout ratio is presently 8.29%.

Analyst Ratings Changes

Several research firms have issued reports on MU. Zacks Research raised Micron Technology from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 19th. Needham & Company LLC reaffirmed a "buy" rating and issued a $150.00 target price on shares of Micron Technology in a report on Monday, August 11th. Wall Street Zen downgraded Micron Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 13th. The Goldman Sachs Group initiated coverage on shares of Micron Technology in a research report on Thursday, July 10th. They set a "neutral" rating and a $130.00 price objective for the company. Finally, UBS Group raised their price target on Micron Technology from $155.00 to $185.00 and gave the stock a "buy" rating in a research report on Monday, September 15th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Micron Technology currently has a consensus rating of "Moderate Buy" and an average price target of $165.54.

Insider Activity

In other Micron Technology news, EVP Manish H. Bhatia sold 80,000 shares of the stock in a transaction that occurred on Monday, June 30th. The shares were sold at an average price of $123.16, for a total value of $9,852,800.00. Following the completion of the sale, the executive vice president owned 275,067 shares in the company, valued at $33,877,251.72. This represents a 22.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Mark J. Murphy sold 34,000 shares of Micron Technology stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $109.32, for a total value of $3,716,880.00. Following the sale, the chief financial officer owned 264,036 shares of the company's stock, valued at approximately $28,864,415.52. This represents a 11.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 255,946 shares of company stock worth $32,306,159 in the last quarter. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Micron Technology

Several large investors have recently bought and sold shares of the business. 180 Wealth Advisors LLC boosted its stake in shares of Micron Technology by 1.9% during the 2nd quarter. 180 Wealth Advisors LLC now owns 5,235 shares of the semiconductor manufacturer's stock worth $645,000 after buying an additional 99 shares during the last quarter. SilverOak Wealth Management LLC raised its stake in shares of Micron Technology by 3.5% during the 2nd quarter. SilverOak Wealth Management LLC now owns 2,955 shares of the semiconductor manufacturer's stock worth $364,000 after purchasing an additional 100 shares in the last quarter. Beta Wealth Group Inc. boosted its holdings in shares of Micron Technology by 1.5% in the 2nd quarter. Beta Wealth Group Inc. now owns 6,805 shares of the semiconductor manufacturer's stock valued at $839,000 after buying an additional 102 shares during the last quarter. HMS Capital Management LLC raised its position in Micron Technology by 0.6% during the second quarter. HMS Capital Management LLC now owns 19,271 shares of the semiconductor manufacturer's stock worth $2,375,000 after acquiring an additional 107 shares in the last quarter. Finally, D.B. Root & Company LLC lifted its stake in Micron Technology by 3.7% in the 1st quarter. D.B. Root & Company LLC now owns 3,018 shares of the semiconductor manufacturer's stock valued at $262,000 after purchasing an additional 108 shares during the last quarter. 80.84% of the stock is currently owned by institutional investors and hedge funds.

Micron Technology Price Performance

The business has a fifty day moving average of $124.74 and a two-hundred day moving average of $106.27. The firm has a market capitalization of $186.23 billion, a price-to-earnings ratio of 29.98 and a beta of 1.47. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.89 and a current ratio of 2.75.

About Micron Technology

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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