Micron Technology (NASDAQ:MU) Shares Experience Decline Following Analyst Downgrade

On December 24th, 2024, shares of Micron Technology, Inc. (NASDAQ:MU) fell by 1.8% during trading hours. This drop followed an adjustment made by Barclays, which lowered its price target for the stock from $145.00 to $110.00. Despite this downgrade, Barclays maintains an overweight rating for the company. During the trading session, Micron Technology’s stock reached a low of $88.40 and closed at $88.51. The trading volume for the day was 7,645,532 shares, significantly lower than the average volume of 21,952,170 shares, marking a decline of 65%. The stock had previously closed at $90.12.

Other financial institutions have also weighed in on Micron Technology. On October 28th, China Renaissance initiated coverage on the company with a "buy" rating and a price objective of $148.00. Meanwhile, Bank of America downgraded Micron Technology from a "buy" rating to a "neutral" rating, reducing its price target from $125.00 to $110.00 in a report released on December 19th. Additionally, Wells Fargo & Company adjusted its price target from $175.00 to $140.00 while keeping an "overweight" rating. On the other hand, Raymond James increased its price objective for Micron Technology from $125.00 to $140.00 and labeled the stock as "outperform" in a report published on September 26th. Citigroup also revised their target, lowering it from $175.00 to $150.00, while maintaining a "buy" rating as of September 17th.

Currently, one analyst has a sell rating on Micron Technology, three analysts have issued hold ratings, and twenty-three analysts have given buy ratings, resulting in an overall average rating of "Moderate Buy" and a consensus target price of $135.24 according to MarketBeat.com.

Insider Transactions

In related news, April S. Arnzen, the Executive Vice President of Micron Technology, sold 4,890 shares of the company on September 26th, at an average price of $113.00, amounting to a total transaction worth $552,570. Following this sale, Arnzen now owns 135,830 shares of Micron Technology, valued at approximately $15,348,790, which represents a 3.47% reduction in her stake. This transaction was reported in a filing with the SEC, which is available for public access. Insiders currently hold 0.30% of Micron’s outstanding shares.

Institutional Ownership

Recent activity among institutional investors indicates a shift in holdings for Micron Technology. Highline Wealth Partners LLC acquired a new stake worth $26,000 in the third quarter, while Davis Capital Management also purchased a new stake valued at about $30,000. Strategic Investment Solutions Inc. bought into the company during the second quarter with an investment of approximately $39,000, and Cranbrook Wealth Management LLC acquired a new position worth $42,000 in the same period. Notably, Stone House Investment Management LLC increased its stake by 602.2% during the third quarter, now owning 323 shares valued at $34,000. Hedge funds and institutional investors together own about 80.84% of Micron Technology’s stock.

Company Financial Overview

The current ratio for Micron Technology stands at 2.64, while the quick ratio is at 1.68, with a debt-to-equity ratio of 0.29. The company’s stock shows a fifty-day simple moving average of $103.14 and a two-hundred-day simple moving average of $108.37. Micron Technology has a market capitalization of approximately $99.96 billion and a price-to-earnings ratio of 131.94, with a beta of 1.16.

In its latest financial report released on December 18th, Micron Technology announced earnings of $1.79 per share for the quarter, outperforming analysts’ expectations of $1.60 by $0.19. The firm reported quarterly revenue of $8.71 billion, matching forecasts. On a year-over-year basis, the company's revenue increased by 84.3%, significantly up from a loss of $0.95 per share reported in the same quarter last year. Analysts predict Micron Technology will have earnings of $8.31 per share for the current fiscal year.

Dividend Announcement

Moreover, Micron Technology has announced a quarterly dividend, which is set to be paid on January 15th. Shareholders who are on record as of December 30th will receive a dividend payment of $0.115 per share. This translates to an annualized dividend of $0.46 and a yield of 0.51%. The ex-dividend date is also scheduled for December 30th, with the company's dividend payout ratio currently at 13.26%.

Company Profile

Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products on a global scale. The company operates across four primary segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. Micron provides various memory and storage technologies, including dynamic random access memory semiconductor devices, non-volatile and re-writable semiconductor storage devices, and fast read-speed memory products under the Micron and Crucial brands, among others.

Micron, Investment, Analyst