Micron Technology (NASDAQ:MU) Shares Down 4.1% – Here’s Why

Micron Technology, Inc. (NASDAQ:MU – Get Free Report) dropped 4.1% during mid-day trading on Wednesday. The company traded as low as $913.56 and last traded at $914.13. Approximately 26,556,513 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 41,202,953 shares. The stock had previously closed at $953.19.

Key Micron Technology News

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

  • Positive Sentiment: Micron’s fundamentals remain strong: fiscal fourth-quarter revenue rose 379% year over year to $54.23 billion, while adjusted earnings exceeded expectations. Analysts at Erste Group raised their FY2027 EPS estimate to $173.31, close to the broader consensus of $175.82. Micron stock and analyst estimates
  • Positive Sentiment: Micron has signed 26 strategic customer agreements, covering more than 75% of expected fiscal 2027 output. The long-term pricing frameworks could reduce the company’s exposure to the traditional memory cycle and improve visibility into future revenue and margins. Micron customer contracts
  • Positive Sentiment: The board authorized approximately $35 billion in share repurchases, potentially supporting earnings per share and signaling confidence in long-term cash generation. Elon Musk also praised Micron’s approach to memory pricing, which may strengthen customer relationships. Micron buybacks
  • Neutral Sentiment: Commentary remains divided on whether the AI memory selloff is overdone. Bullish analysts point to HBM4, tight DRAM supply and 2027 contract-price increases, while the stock’s low forward valuation reflects concerns that current profits may represent a cyclical peak. AI memory stock analysis
  • Negative Sentiment: China’s ChangXin Memory Technologies (CXMT) reported progress on a denser 4F-square DRAM design aimed at server memory. Although commercial-scale production and enterprise validation remain uncertain, investors fear the technology could eventually pressure Micron’s pricing power and margins. CXMT server-memory competition
  • Negative Sentiment: Hotter-than-expected U.S. inflation has added pressure to high-growth technology stocks. Investors are also monitoring a possible labor dispute at Micron’s Taiwan operations, the company’s $600 million Netlist settlement, and recent insider selling as additional risks to production and cash flow. Memory-stock market pressures

Analyst Ratings Changes

MU has been the topic of several recent analyst reports. Phillip Securities boosted their price objective on Micron Technology from $530.00 to $1,870.00 and gave the stock a “buy” rating in a report on Monday, June 29th. Itau BBA Securities raised their price objective on shares of Micron Technology from $1,243.78 to $1,697.09 and gave the stock an “outperform” rating in a research note on Wednesday, July 22nd. Robert W. Baird raised their target price on Micron Technology from $1,280.00 to $1,520.00 and gave the stock an “outperform” rating in a research report on Monday, September 28th. New Street Research upgraded Micron Technology from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $470.00 to $1,250.00 in a research report on Friday, August 14th. Finally, Barclays increased their price target on shares of Micron Technology from $1,175.00 to $2,000.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, forty-one have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $1,407.88.

Get Our Latest Research Report on MU

Micron Technology Stock Down 4.1%

The firm has a market cap of $1.03 trillion, a P/E ratio of 12.32, a P/E/G ratio of 0.17 and a beta of 2.22. The business’s fifty day moving average price is $984.44 and its two-hundred day moving average price is $853.14. The company has a current ratio of 3.31, a quick ratio of 2.94 and a debt-to-equity ratio of 0.03.

Micron Technology (NASDAQ:MU – Get Free Report) last posted its 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 return on equity of 92.62% and a net margin of 63.80%. The company had revenue of $54.23 billion for the quarter, compared to analyst estimates of $51.33 billion. During the same period last year, the company earned $3.03 earnings per share. The business’s revenue was up 379.1% compared to the same quarter last year. 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 175.82 EPS for the current year.

Micron Technology Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, October 14th will be issued a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.1%. The ex-dividend date is Wednesday, October 14th. Micron Technology’s dividend payout ratio (DPR) is 0.81%.

Insiders Place Their Bets

In related news, CEO Sanjay Mehrotra sold 40,000 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the completion of the sale, the chief executive officer owned 264,503 shares in the company, valued at $256,276,956.70. This represents a 13.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Sumit Sadana sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $934.29, for a total value of $14,014,350.00. Following the completion of the sale, the executive vice president directly owned 191,021 shares of the company’s stock, valued at $178,469,010.09. This represents a 7.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 95,879 shares of company stock valued at $90,939,466 in the last quarter. Insiders own 0.24% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. M.E. Allison & CO. Inc. boosted its stake in Micron Technology by 0.8% during the 2nd quarter. M.E. Allison & CO. Inc. now owns 1,324 shares of the semiconductor manufacturer’s stock valued at $1,528,000 after purchasing an additional 11 shares during the period. Ables Iannone Moore & Associates Inc. boosted its position in shares of Micron Technology by 5.3% during the third quarter. Ables Iannone Moore & Associates Inc. now owns 237 shares of the semiconductor manufacturer’s stock worth $252,000 after buying an additional 12 shares during the period. Koesten Hirschmann & Crabtree INC. boosted its position in shares of Micron Technology by 5.6% during the third quarter. Koesten Hirschmann & Crabtree INC. now owns 228 shares of the semiconductor manufacturer’s stock worth $243,000 after buying an additional 12 shares during the period. Cherrydale Wealth Management LLC grew its holdings in Micron Technology by 1.4% in the 2nd quarter. Cherrydale Wealth Management LLC now owns 972 shares of the semiconductor manufacturer’s stock worth $1,122,000 after buying an additional 13 shares in the last quarter. Finally, Bellevue Asset Management LLC boosted its position in Micron Technology by 25.5% during the 2nd quarter. Bellevue Asset Management LLC now owns 64 shares of the semiconductor manufacturer’s stock worth $74,000 after acquiring an additional 13 shares during the period. Institutional investors and hedge funds own 80.84% of the company’s stock.

About Micron Technology

(Get Free Report)

Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage solutions. Its product portfolio includes dynamic random-access memory (DRAM), NAND flash memory, three-dimensional XPoint-related technologies, solid-state drives, and high-bandwidth memory products designed for demanding computing applications.

The company serves customers across the data center, artificial intelligence, networking, automotive, industrial, mobile, consumer electronics, and embedded markets.

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