Micron Technology (MU) Stock Rating Lowered by Zacks Investment Research

Micron Technology (NASDAQ:MU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.

According to Zacks, “Micron is expected to gain from the DRAM boom which is here to stay, at least in the near term, as demand remains ahead of supply. However, declining NAND ASP as supply exceeded demand, remains a concern which might partially offset the benefits from improved demand and prices for DRAM products. Nonetheless, we believe growing adoption of SSD from PC manufacturers and data-center operators will soak the extra supply, thereby stabilizing NAND prices. Additionally, we are positive about the company’s strategy of enhancing capabilities through acquisitions which are likely to boost its top-line performance over the long run. Notably, the stock has performed in-line with the industry over the past one year.”

Other research analysts have also issued research reports about the stock. MKM Partners increased their price target on shares of Micron Technology to $72.00 and gave the stock a “buy” rating in a research report on Tuesday. Deutsche Bank increased their price target on shares of Micron Technology from $68.00 to $72.00 and gave the stock a “buy” rating in a research report on Tuesday. Cowen increased their price target on shares of Micron Technology from $65.00 to $67.00 and gave the stock an “outperform” rating in a research report on Tuesday. Credit Suisse Group increased their price target on shares of Micron Technology from $70.00 to $80.00 and gave the stock an “outperform” rating in a research report on Tuesday. Finally, Barclays increased their price target on shares of Micron Technology to $65.00 and gave the stock an “overweight” rating in a research report on Tuesday. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating, twenty-six have given a buy rating and two have given a strong buy rating to the stock. The company has a consensus rating of “Buy” and an average price target of $65.86.

Shares of Micron Technology traded up $4.21, hitting $59.69, during mid-day trading on Tuesday, according to Marketbeat Ratings. The company had a trading volume of 69,306,850 shares, compared to its average volume of 40,761,288. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.06 and a current ratio of 2.58. Micron Technology has a 12 month low of $26.85 and a 12 month high of $63.42. The stock has a market cap of $61.92 billion, a PE ratio of 13.54, a PEG ratio of 0.49 and a beta of 1.36.

Micron Technology (NASDAQ:MU) last released its earnings results on Thursday, March 22nd. The semiconductor manufacturer reported $2.82 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.55 by $0.27. Micron Technology had a net margin of 38.68% and a return on equity of 48.27%. The business had revenue of $7.35 billion during the quarter, compared to analysts’ expectations of $7.28 billion. During the same quarter last year, the company earned $0.90 earnings per share. The firm’s revenue was up 58.2% on a year-over-year basis. research analysts forecast that Micron Technology will post 10.92 earnings per share for the current fiscal year.

Micron Technology declared that its Board of Directors has initiated a share repurchase plan on Monday, May 21st that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to purchase up to 16.2% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

In other Micron Technology news, Director Robert L. Bailey sold 3,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 1st. The shares were sold at an average price of $48.00, for a total value of $144,000.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Patrick J. Byrne sold 14,360 shares of the firm’s stock in a transaction that occurred on Wednesday, May 2nd. The shares were sold at an average price of $46.31, for a total transaction of $665,011.60. Following the completion of the transaction, the director now directly owns 100,299 shares in the company, valued at $4,644,846.69. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 56,587 shares of company stock worth $2,871,752. Insiders own 0.53% of the company’s stock.

Hedge funds have recently made changes to their positions in the business. Dimensional Fund Advisors LP boosted its position in shares of Micron Technology by 1.0% during the first quarter. Dimensional Fund Advisors LP now owns 13,502,797 shares of the semiconductor manufacturer’s stock worth $704,036,000 after purchasing an additional 134,067 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Micron Technology by 6.9% during the fourth quarter. Geode Capital Management LLC now owns 12,907,706 shares of the semiconductor manufacturer’s stock worth $529,730,000 after purchasing an additional 835,541 shares in the last quarter. Amundi Pioneer Asset Management Inc. boosted its position in shares of Micron Technology by 47.5% during the first quarter. Amundi Pioneer Asset Management Inc. now owns 6,078,300 shares of the semiconductor manufacturer’s stock worth $316,921,000 after purchasing an additional 1,958,119 shares in the last quarter. Schwab Charles Investment Management Inc. boosted its position in shares of Micron Technology by 7.4% during the first quarter. Schwab Charles Investment Management Inc. now owns 4,874,633 shares of the semiconductor manufacturer’s stock worth $254,164,000 after purchasing an additional 337,934 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Micron Technology by 26,035.4% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 4,756,637 shares of the semiconductor manufacturer’s stock worth $195,593,000 after acquiring an additional 4,738,437 shares during the period. 78.52% of the stock is currently owned by hedge funds and other institutional investors.

About Micron Technology

Micron Technology, Inc provides semiconductor systems worldwide. The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. It offers DDR3 and DDR4 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; lower power DRAM products for smartphones, tablets, automotive, laptop computers, and other mobile consumer device applications; DDR2 DRAM and DDR DRAM, GDDR5 and GDDR5X DRAM, SDRAM, and RLDRAM products for networking devices, servers, consumer electronics, communications equipment, computer peripherals, and automotive and industrial applications, as well as for computer memory upgrades; and hybrid memory cube semiconductor memory devices.

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