Micron Technology Shares Fall Following Morgan Stanley Downgrade

Micron Technology, Inc. (NASDAQ:MU) saw a significant drop in its share price ahead of trading on Thursday, following a downgrade from Morgan Stanley. The investment firm lowered its price target for Micron shares from $114.00 to $98.00. This change in analyst sentiment resulted in the stock opening at $90.08 after closing at $103.90 the previous day.

At the time of writing, Micron Technology shares were trading at $86.37, with a total trading volume of 20,483,340 shares. Morgan Stanley currently maintains an equal weight rating on Micron, suggesting a cautious stance on its stock performance.

Other analysts have been more optimistic about Micron Technology's potential. Raymond James recently increased its price target from $125.00 to $140.00 while giving the stock an “outperform” rating. Similarly, Susquehanna adjusted its price objective down from $175.00 to $165.00 but retained a “positive” outlook on the company. UBS Group also reduced its target from $135.00 to $125.00 and maintained a “buy” rating. Moreover, Robert W. Baird cut its price target from $150.00 to $130.00, still evaluating it as “outperform.” Piper Sandler also lowered its target from $150.00 to $120.00 while keeping an “overweight” rating. Overall, according to MarketBeat.com, the stock has one sell rating, three hold ratings, and an impressive 25 buy ratings, culminating in an average rating of “Moderate Buy” with a target price of $133.56.

Micron Technology Insider Trading

In related news, the company's executive vice president, April S. Arnzen, sold 4,890 shares of Micron stock on September 26th. The shares were sold at an average price of $113.00, amounting to a total of $552,570.00 from the sale. Following this transaction, she retains 135,830 shares of Micron, valued at approximately $15,348,790. Insider ownership of the company currently stands at around 0.30%.

Hedge Fund Activities

Institutional investors have been actively reshuffling their positions in Micron Technology. For instance, Ameritas Advisory Services LLC increased its stake by 1.3%, now owning 7,625 shares worth about $1,003,000. Similarly, Stonebrook Private Inc. raised its stake by 4.2% in the third quarter, and LRI Investments LLC boosted its holdings by an impressive 57.2% during the same period. Other notable changes include John G Ullman & Associates Inc., which raised its stake by 2.5%. Overall, institutional investors and hedge funds collectively own 80.84% of Micron's stock.

Recent Performance and Earnings Report

Micron Technology's shares have experienced significant volatility, currently down 16.2%. The company boasts a market capitalization of $97.02 billion with a P/E ratio of 128.08 and a beta of 1.16. Its 50-day moving average stands at $103.48, while the 200-day moving average is at $108.93. The company reported its quarterly earnings on December 18th, revealing earnings of $1.79 per share, which exceeded analyst estimates of $1.60. The total revenue for the quarter was an impressive $8.71 billion, aligning with expectations, and showing an increase of 84.3% compared to the same quarter the previous year. Analysts predict that Micron will post earnings per share of 8.31 for the current fiscal year.

Micron's Dividend Announcement

Micron Technology has declared a quarterly dividend of $0.115 per share, which is set to be paid on January 15th to shareholders of record by December 30th. This results in an annualized dividend of $0.46 and represents a yield of 0.53%. Notably, Micron has a dividend payout ratio of 13.26%, indicating a modest commitment to returning capital to shareholders.

About Micron Technology

Micron Technology, Inc. specializes in the design, development, manufacturing, and sale of memory and storage products globally. The company operates through four main segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. Micron's products include dynamic random access memory (DRAM), solid-state drives (SSDs), and a variety of memory solutions sold under its brands as well as through private labels.

Micron, Stocks, Analyst