Micron Technology (NASDAQ:MU) Stock Falls 7% – Here’s Why

Micron Technology, Inc. (NASDAQ:MU) traded down 7% during mid-day trading on Wednesday. The stock traded as low as $782.00 and last traded at $795.23. 35,099,207 shares changed hands during trading, a decline of 13% from the average session volume of 40,190,645 shares. The stock had previously closed at $855.10.

Micron Technology News Summary

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

• Positive Sentiment: Apple CEO John Ternus expects memory prices to keep climbing beyond the December quarter. Higher prices could support Micron’s revenue and pricing power, although they also increase costs for memory buyers. Apple says it will keep paying more for memory chips
• Negative Sentiment: Investors worried that Democratic victories in the midterm elections could signal a slower AI data-center buildout. Since AI-server demand has helped drive memory shortages, any slowdown could ease supply tightness and weaken Micron’s ability to command higher prices. Why Micron stock is falling today
• Negative Sentiment: The concerns weighed on memory stocks broadly, with Micron, SK Hynix, and SanDisk all retreating as markets reassessed the outlook for AI infrastructure spending. Why election results are spooking memory investors

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MU. TD Cowen restated a “buy” rating and issued a $1,600.00 target price on shares of Micron Technology in a research note on Thursday, October 1st. Wells Fargo & Company reduced their price target on 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. Weiss Ratings downgraded Micron Technology from a “buy (b+)” rating to a “buy (b)” rating in a report on Tuesday, October 27th. William Blair set a $1,300.00 target price on shares of Micron Technology in a report on Thursday, October 1st. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $1,200.00 price target on shares of Micron Technology in a research report 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 stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,407.88.

Micron Technology Trading Down 7.0%

The company has a market capitalization of $899.74 billion, a P/E ratio of 10.72, a PEG ratio of 0.14 and a beta of 2.36. The stock has a fifty day moving average of $974.91 and a 200 day moving average of $749.61. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.94 and a current ratio of 3.31.

Micron Technology (NASDAQ:MU) last issued its quarterly earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share for the quarter, beating the consensus estimate of $31.77 by $1.65. Micron Technology had a net margin of 63.80% and a return on equity of 92.62%. The business 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 firm earned $3.03 earnings per share. The company’s revenue for the quarter was up 379.1% on a year-over-year basis. 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 177.03 EPS for the current fiscal year.

Micron Technology Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 29th. Investors of record on Wednesday, October 14th were paid 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 Wednesday, October 14th. Micron Technology’s dividend payout ratio (DPR) is 0.81%.

Insider Activity at Micron Technology

In related news, EVP Sumit Sadana sold 15,000 shares of the business’s stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 191,021 shares of the company’s stock, valued at approximately $178,469,010.09. The trade was a 7.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Scott Deboer sold 28,545 shares of the company’s stock in a transaction that occurred on Friday, October 16th. The stock was sold at an average price of $900.00, for a total value of $25,690,500.00. Following the completion of the transaction, 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. In the last 90 days, insiders have sold 83,545 shares of company stock valued at $78,460,850. 0.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Micron Technology

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bullseye Investment Management LLC acquired a new position in shares of Micron Technology in the second quarter valued at $27,000. Aventus Investment Advisors Inc. bought a new position in Micron Technology in the third quarter worth $30,000. Steph & Co. acquired a new stake in Micron Technology during the third quarter worth $31,000. Montgomery Financial Services LLC acquired a new stake in Micron Technology during the second quarter worth $38,000. Finally, JNBA Financial Advisors increased its holdings in Micron Technology by 77.3% in the 2nd quarter. JNBA Financial Advisors now owns 39 shares of the semiconductor manufacturer’s stock valued at $45,000 after buying an additional 17 shares during the period. Institutional investors own 80.84% of the company’s stock.

Micron Technology Company Profile

Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.

The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.