Micron Technology (NASDAQ:MU) Shares Up 11.9% - Time to Buy?

Key Points

• Micron shares jumped 11.9% in mid-day trading, amid a broader chip-stock rebound and optimism about tight memory supply, pricing strength, and potential high-bandwidth memory repricing.
• The company reported quarterly earnings and revenue above analyst expectations: EPS was $33.42 versus a $31.77 consensus, while revenue rose 379.1% year over year to $54.23 billion.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and an average price target of $1,407.88, though some firms have expressed more cautious views.

Micron Technology, Inc. (NASDAQ:MU - Get Free Report)'s stock price rose 11.9% during mid-day trading on Wednesday. The stock traded as high as $827.58 and last traded at $811.30. Approximately 35,270,807 shares traded hands during trading, a decline of 12% from the average session volume of 40,296,109 shares. The stock had previously closed at $725.11.

Key Headlines Impacting Micron Technology

Investors following MU have been watching these headlines:

• Positive Sentiment: Micron is benefiting from a broader chip-sector rebound as investors buy beaten-down shares. Recent coverage also points to tight memory supply, strong pricing power and potential HBM repricing as supports for the bull case. Chip Stocks Rally After Slide Micron: HBM Repricing Strengthens the Buy Case After the Selloff
• Positive Sentiment: Reports of Micron participating in a $1 billion Anthropic placement add to its visibility alongside major AI customers, although the investment itself does not guarantee additional chip orders. Micron Stocks Jump as Memory Rebound Meets Anthropic Placement
• Neutral Sentiment: Analyst views are divided: Goldman Sachs reiterated a $1,250 price target, while Bank of America removed Micron from its top-picks list but retained a Buy rating. Goldman and Bank of America Differ on Micron

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on MU. Deutsche Bank reiterated a "buy" rating on shares of Micron Technology in a report on Thursday, October 1st. Daiwa Securities Group increased their price objective on Micron Technology from $1,600.00 to $1,700.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Mizuho increased their price objective on Micron Technology from $1,300.00 to $1,400.00 and gave the stock an "outperform" rating in a research note on Thursday, October 1st. Seaport Research Partners restated a "buy" rating on shares of Micron Technology in a research report on Friday, August 14th. Finally, BMO Capital Markets reaffirmed an "outperform" rating on shares of Micron Technology in a research note on Thursday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,407.88.

Micron Technology Trading Up 11.9%

The firm has a market capitalization of $917.92 billion, a PE ratio of 10.93, a price-to-earnings-growth ratio of 0.13 and a beta of 2.36. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.31 and a quick ratio of 2.94. The company has a fifty day moving average of $952.93 and a 200-day moving average of $758.35.

Micron Technology (NASDAQ:MU - Get Free Report) last issued its earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 EPS for the quarter, beating analysts' consensus estimates of $31.77 by $1.65. Micron Technology had a return on equity of 92.62% and a net margin of 63.80%. The firm had revenue of $54.23 billion for the quarter, compared to the consensus estimate of $51.33 billion. During the same quarter in the previous year, the company posted $3.03 earnings per share. The business's quarterly revenue was up 379.1% compared to the same quarter last year. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. On average, sell-side analysts anticipate that Micron Technology, Inc. will post 175.22 earnings per share for the current fiscal year.

Micron Technology Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 29th. Shareholders of record on Wednesday, October 14th were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date was Wednesday, October 14th. Micron Technology's dividend payout ratio (DPR) is 0.81%.

Insider Buying and Selling at Micron Technology

In other news, CEO Sanjay Mehrotra sold 40,000 shares of Micron Technology stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $968.90, for a total value of $38,756,000.00. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Scott Deboer sold 28,545 shares of the business's stock in a transaction on Friday, October 16th. The stock was sold at an average price of $900.00, for a total transaction of $25,690,500.00. Following the completion of the sale, the insider owned 147,430 shares of the company's stock, valued at $132,687,000. The trade was a 16.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 83,545 shares of company stock worth $78,460,850 over the last 90 days. Insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Micron Technology

Institutional investors have recently made changes to their positions in the business. Andar Capital Management HK Ltd boosted its position in shares of Micron Technology by 856,960.3% in the second quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer's stock valued at $39,571,847,000 after acquiring an additional 34,278,413 shares during the period. Primecap Management Co. CA bought a new position in Micron Technology during the second quarter worth $22,182,263,000. Bank of America Corp DE increased its position in Micron Technology by 26.6% during the second quarter. Bank of America Corp DE now owns 10,174,757 shares of the semiconductor manufacturer's stock worth $11,744,621,000 after acquiring an additional 2,136,470 shares during the period. Legal & General Group Plc bought a new position in Micron Technology during the second quarter worth $8,402,393,000. Finally, Aberdeen Group plc raised its stake in Micron Technology by 762.2% during the 3rd quarter. Aberdeen Group plc now owns 7,084,241 shares of the semiconductor manufacturer's stock valued at $7,545,496,000 after purchasing an additional 6,262,603 shares during the last quarter. 80.84% of the stock is currently owned by institutional investors.

Micron Technology Company Profile

Micron Technology is a semiconductor company that designs and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, and other memory solutions used in computing and electronic devices. Micron's products serve a range of markets, including data centers, personal computers, smartphones, automotive systems, and industrial applications. The company sells its products and solutions to customers around the world.

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