Micron Technology (MU) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of Micron Technology (NASDAQ:MU) from a hold rating to a sell rating in a research report sent to investors on Friday morning.

According to Zacks, “Micron's top line is being negatively impacted by the falling demand for semiconductor chips. The U.S.-China trade war is keeping the company under pressure, as most of the demand for its products came from China. Moreover, expected decline in contract pricing for NAND does not bode well for Micron. Additionally, CPU shortages in the client compute market and inventory adjustments with some customers are near-term headwinds. Increasing competition in the industry also remains a concern for the company. Shares have underperformed the S&P 500 index in the year-to-date period. However, we are positive about the company’s strategy of enhancing its capabilities through acquisitions, which are likely to boost its top line in the long run. Estimates have been stable lately ahead of the company’s Q1 earnings release. The company has positive record of earnings surprises in recent quarters.”

A number of other equities analysts have also recently issued reports on MU. Raymond James began coverage on Micron Technology in a report on Monday, October 22nd. They issued a market perform rating on the stock. ValuEngine upgraded Micron Technology from a strong sell rating to a sell rating in a report on Thursday, November 1st. JPMorgan Chase & Co. restated an overweight rating and issued a $84.00 target price on shares of Micron Technology in a report on Wednesday, September 19th. Wells Fargo & Co decreased their target price on Micron Technology from $70.00 to $63.00 and set an outperform rating on the stock in a report on Wednesday, August 15th. They noted that the move was a valuation call. Finally, BidaskClub cut Micron Technology from a hold rating to a sell rating in a report on Friday, August 17th. Four equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, nineteen have issued a buy rating and two have assigned a strong buy rating to the company’s stock. Micron Technology currently has a consensus rating of Buy and a consensus target price of $64.51.

Shares of NASDAQ MU traded down $2.36 during mid-day trading on Friday, hitting $35.31. The company had a trading volume of 30,599,900 shares, compared to its average volume of 25,587,500. The company has a market cap of $42.73 billion, a price-to-earnings ratio of 2.99, a price-to-earnings-growth ratio of 0.60 and a beta of 1.63. Micron Technology has a 12 month low of $33.82 and a 12 month high of $64.66. The company has a current ratio of 2.79, a quick ratio of 2.16 and a debt-to-equity ratio of 0.11.

Micron Technology (NASDAQ:MU) last announced its earnings results on Thursday, September 20th. The semiconductor manufacturer reported $3.53 earnings per share for the quarter, beating the consensus estimate of $3.33 by $0.20. The firm had revenue of $8.44 billion for the quarter, compared to the consensus estimate of $8.25 billion. Micron Technology had a return on equity of 51.68% and a net margin of 46.51%. The firm’s revenue for the quarter was up 37.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.02 EPS. As a group, equities analysts forecast that Micron Technology will post 9.86 earnings per share for the current fiscal year.

A number of large investors have recently bought and sold shares of MU. Capital World Investors acquired a new position in Micron Technology during the 3rd quarter worth $1,136,492,000. AQR Capital Management LLC lifted its stake in shares of Micron Technology by 75.5% in the 3rd quarter. AQR Capital Management LLC now owns 28,530,556 shares of the semiconductor manufacturer’s stock valued at $1,290,438,000 after purchasing an additional 12,269,445 shares during the period. Senator Investment Group LP acquired a new position in shares of Micron Technology in the 2nd quarter valued at $140,277,000. Point72 Asset Management L.P. lifted its stake in shares of Micron Technology by 632.0% in the 2nd quarter. Point72 Asset Management L.P. now owns 2,027,604 shares of the semiconductor manufacturer’s stock valued at $106,328,000 after purchasing an additional 1,750,604 shares during the period. Finally, Natixis lifted its stake in shares of Micron Technology by 345.7% in the 2nd quarter. Natixis now owns 2,028,745 shares of the semiconductor manufacturer’s stock valued at $106,388,000 after purchasing an additional 1,573,549 shares during the period. 74.46% of the stock is currently owned by hedge funds and other institutional investors.

About Micron Technology

Micron Technology, Inc manufactures and sells memory and storage solutions worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It offers memory and storage technologies, including DRAM, NAND, NOR Flash, and 3D XPoint memory under the Micron, Crucial, and Ballistix brands, as well as private labels.

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