Micron Technology (NASDAQ:MU) Stock Falls 1.6% - What's Next?

Key Points

• Micron shares fell 1.6% to $798.44 on Thursday, with trading volume 33% below its average as investors weighed AI-sector risks and took profits after a rebound.
• Recent results beat analyst expectations: Micron reported quarterly EPS of $33.42 and revenue of $54.23 billion. Strong AI-computing demand and reports that much of next year’s high-bandwidth memory output is already committed support the demand outlook.
• Analyst sentiment remains broadly positive, with a Moderate Buy consensus and an average price target of $1,407.88; the company also issued Q1 2027 EPS guidance of $37.15–$39.15.

Shares of Micron Technology, Inc. (NASDAQ:MU - Get Free Report) dropped 1.6% during trading on Thursday. The company traded as low as $764.57 and last traded at $798.44. 26,873,243 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 40,240,645 shares. The stock had previously closed at $811.30.

Micron Technology News Roundup

Investors following MU have been watching these news items:

• Positive Sentiment: CoreWeave raised its outlook and described demand for AI computing as exceptionally strong, easing concerns that infrastructure spending is slowing. Because data-center operators use Micron’s memory products, the news supports expectations for continued demand. Micron Stock Jumps as CoreWeave Outlook Eases AI Spending Fears
• Positive Sentiment: Reports that much of Micron’s high-bandwidth memory production for next year is already committed point to tight supply and strong customer demand, supporting the company’s pricing outlook. Micron Has Next Year’s High-Bandwidth Memory Mostly Sold
• Negative Sentiment: After a strong one-day rebound, Micron gave back some gains as investors reassessed AI-sector risks and took profits. The move reflects continued volatility after a steep recent selloff. Micron Shares Fall as Nvidia Exit Tests Memory Rally

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on MU shares. Wells Fargo & Company cut their price target on shares of Micron Technology from $1,525.00 to $1,400.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 23rd. Itau BBA Securities lifted their price objective on shares of Micron Technology from $1,243.78 to $1,697.09 and gave the stock an "outperform" rating in a research note on Wednesday, July 22nd. KeyCorp reissued an "overweight" rating on shares of Micron Technology in a report on Thursday, October 1st. Arete Research upped their target price on Micron Technology from $852.00 to $1,500.00 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Finally, President Capital raised their target price on Micron Technology to $1,500.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. One 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. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $1,407.88.

Micron Technology Stock Down 1.6%

The company has a current ratio of 3.31, a quick ratio of 2.94 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $903.37 billion, a PE ratio of 10.76, a price-to-earnings-growth ratio of 0.13 and a beta of 2.36. The business's 50-day simple moving average is $950.48 and its 200-day simple moving average is $760.41.

Micron Technology (NASDAQ:MU - Get Free Report) last released its quarterly earnings data on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 EPS for the quarter, beating the consensus estimate of $31.77 by $1.65. The business had revenue of $54.23 billion for the quarter, compared to the consensus estimate of $51.33 billion. Micron Technology had a net margin of 63.80% and a return on equity of 92.62%. The business's revenue for the quarter was up 379.1% on a year-over-year basis. During the same period in the prior year, the firm earned $3.03 EPS. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. As a group, equities research analysts anticipate that Micron Technology, Inc. will post 175.22 EPS for the current fiscal year.

Micron Technology Announces Dividend

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

Insider Activity

In other news, EVP Sumit Sadana sold 15,000 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $934.29, for a total value of $14,014,350.00. Following the sale, the executive vice president owned 191,021 shares in the company, valued at $178,469,010.09. This represents a 7.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Scott Deboer sold 28,545 shares of Micron Technology stock in a transaction that occurred on Friday, October 16th. The shares were sold at an average price of $900.00, for a total value of $25,690,500.00. Following the transaction, the insider owned 147,430 shares of the company's stock, valued at approximately $132,687,000. This represents a 16.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 83,545 shares of company stock valued at $78,460,850 in the last quarter. 0.24% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Micron Technology

Several institutional investors have recently made changes to their positions in MU. State Street Corp boosted its stake in shares of Micron Technology by 2.1% during the 3rd quarter. State Street Corp now owns 51,123,227 shares of the semiconductor manufacturer's stock worth $54,451,860,000 after acquiring an additional 1,047,357 shares in the last quarter. Andar Capital Management HK Ltd raised its holdings in Micron Technology by 856,960.3% in the 2nd quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer's stock worth $39,571,847,000 after purchasing an additional 34,278,413 shares during the period. Primecap Management Co. CA acquired a new position in Micron Technology in the 2nd quarter worth about $22,182,263,000. Bank of America Corp DE boosted 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 purchasing an additional 2,136,470 shares in the last quarter. Finally, Legal & General Group Plc purchased a new position in Micron Technology during the second quarter worth approximately $8,402,393,000. 80.84% of the stock is owned by hedge funds and other institutional investors.

About Micron Technology

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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