Micron Technology (NASDAQ:MU) Shares Down 13.3% – Here’s Why

Micron Technology, Inc. (NASDAQ:MU)’s stock price traded down 13.3% during trading on Friday . The company traded as low as $864.01 and last traded at $864.01. 75,015,331 shares were traded during trading, an increase of 71% from the average session volume of 43,900,270 shares. The stock had previously closed at $996.00.

Key Headlines Impacting Micron Technology

Here are the key news stories impacting Micron Technology this week:

• Positive Sentiment: Micron was certified as an HBM4 supplier for Nvidia’s Vera Rubin AI platform, reinforcing its role in a major AI memory supply chain. Micron’s HBM4 Certification With Nvidia Puts AI Memory Margins In Focus
• Positive Sentiment: Several analysts remain bullish, with recent price-target hikes from firms including Morgan Stanley, Susquehanna, Raymond James, UBS, and others. Morgan Stanley raises Micron stock price target
• Neutral Sentiment: Commentary pieces continue to highlight Micron’s huge AI-driven run and its strong earnings momentum, but also note that expectations are now very high ahead of its June 24 earnings report. Micron Stock Price Forecast — What Top Analysts Expect Ahead of June 24 Earnings
• Negative Sentiment: Semiconductor stocks are getting hit as investors reassess the pace of AI spending, with Broadcom’s disappointing outlook triggering sector-wide selling that is dragging Micron lower. Micron, Marvell, and Broadcom lead chipmakers’ premarket losses
• Negative Sentiment: Bearish coverage is also warning that Micron’s rally may have gone too far, with some analysts saying memory-chip prices could be approaching a ceiling and that the stock is priced for perfection after its massive run. Micron Stock Drops, Brace for the Memory-Price Peak

Analyst Upgrades and Downgrades

A number of research firms have issued reports on MU. Sanford C. Bernstein boosted their price objective on shares of Micron Technology from $330.00 to $510.00 and gave the company an “outperform” rating in a report on Wednesday, March 18th. KeyCorp lifted their price target on shares of Micron Technology from $450.00 to $600.00 and gave the company an “overweight” rating in a research report on Thursday, March 19th. Mizuho boosted their price target on Micron Technology to $800.00 and gave the company an “outperform” rating in a research note on Tuesday, May 19th. Morgan Stanley raised their price objective on Micron Technology from $520.00 to $1,050.00 and gave the stock an “overweight” rating in a research note on Wednesday. Finally, Royal Bank Of Canada increased their price objective on shares of Micron Technology from $425.00 to $525.00 and gave the company an “outperform” rating in a research note on Monday, March 16th. Five investment analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Micron Technology has an average rating of “Buy” and an average target price of $641.97.

Micron Technology Stock Down 13.3%

The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.32 and a current ratio of 2.90. The stock has a market capitalization of $974.37 billion, a P/E ratio of 40.79 and a beta of 2.16. The stock’s fifty day simple moving average is $607.64 and its two-hundred day simple moving average is $434.99.

Micron Technology (NASDAQ:MU) last released its quarterly earnings results on Wednesday, March 18th. The semiconductor manufacturer reported $12.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.19 by $3.01. The firm had revenue of $23.86 billion during the quarter, compared to the consensus estimate of $19.97 billion. Micron Technology had a net margin of 41.49% and a return on equity of 41.16%. The company’s revenue for the quarter was up 196 on a year-over-year basis. During the same quarter last year, the firm earned $1.56 earnings per share. As a group, research analysts expect that Micron Technology, Inc. will post 58.62 EPS for the current fiscal year.

Micron Technology Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Monday, March 30th 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 of this dividend was Monday, March 30th. This is a boost from Micron Technology’s previous quarterly dividend of $0.12. Micron Technology’s dividend payout ratio (DPR) is presently 2.83%.

Insider Buying and Selling

In related news, EVP Sumit Sadana sold 24,000 shares of the company’s stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $421.35, for a total value of $10,112,400.00. Following the sale, the executive vice president directly owned 224,021 shares in the company, valued at $94,391,248.35. This represents a 9.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP April S. Arnzen sold 40,000 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $347.39, for a total transaction of $13,895,600.00. Following the sale, the executive vice president directly owned 125,737 shares of the company’s stock, valued at $43,679,776.43. This represents a 24.13% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 146,000 shares of company stock worth $85,486,715. Corporate insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Micron Technology

Several institutional investors and hedge funds have recently made changes to their positions in the business. Heritage Trust Co raised its holdings in shares of Micron Technology by 9.7% in the 4th quarter. Heritage Trust Co now owns 15,026 shares of the semiconductor manufacturer’s stock worth $4,289,000 after acquiring an additional 1,323 shares during the last quarter. Generation Capital Management LLC acquired a new position in Micron Technology during the 3rd quarter valued at about $238,000. Wealthfront Advisers LLC boosted its stake in Micron Technology by 9.8% during the 3rd quarter. Wealthfront Advisers LLC now owns 95,396 shares of the semiconductor manufacturer’s stock valued at $15,962,000 after purchasing an additional 8,489 shares during the last quarter. Westpac Banking Corp increased its holdings in Micron Technology by 251.0% during the 3rd quarter. Westpac Banking Corp now owns 23,086 shares of the semiconductor manufacturer’s stock worth $3,863,000 after purchasing an additional 16,509 shares in the last quarter. Finally, Avanda Investment Management Pte. Ltd. purchased a new stake in shares of Micron Technology in the third quarter worth approximately $418,000. Institutional investors own 80.84% of the company’s stock.

About Micron Technology

Micron Technology, Inc is a global semiconductor company that designs and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, solid-state drives (SSDs), memory modules and embedded memory solutions for a wide range of computing and electronic devices. Micron supplies components used in data centers, enterprise and cloud infrastructure, client computing, mobile devices, automotive systems and industrial applications, and also markets consumer-facing products under the Crucial brand.

Founded in 1978 and headquartered in Boise, Idaho, Micron has grown into an international manufacturer with research, development and production facilities across multiple regions.