Micron Technology (MU) Shares Gap Up After Analyst Upgrade

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Micron Technology, Inc. (NASDAQ:MU) shares gapped up prior to trading on Friday after Zacks Investment Research upgraded the stock from a sell rating to a hold rating. The stock had previously closed at $46.27, but opened at $43.99. Micron Technology shares last traded at $42.35, with a volume of 31033736 shares traded.

According to Zacks, “Micron reported weak Q2 results, hurt by higher-than-expected decline in DRAM and NAND pricing. Seasonality, soft smartphone and enterprise server sales, inventory adjustments with key customers, pause in datacenter hardware spending and Intel’s CPU shortages adversely impacted the company’s performance. Notably, shares have underperformed the S&P 500 composite in the past year. Nevertheless, strong growth in managed NAND products is boosting revenue growth of Micron’s Mobile Business Unit. Further, to tackle lower DRAM demand among customers, the company is idling 5% of its DRAM wafer starts and cutting down on capital expenditure. Moreover, Micron expects revival of growth in the second half of 2019 as it anticipates memory demand to improve owing to normalization in most customer inventories by mid-year. Introduction of server processors that support higher memory densities are likely to fuel demand for its solutions.”

Several other research analysts have also issued reports on the stock. BidaskClub upgraded shares of Micron Technology from a “sell” rating to a “hold” rating in a research note on Friday. Needham & Company LLC reiterated a “hold” rating on shares of Micron Technology in a research note on Thursday. Morgan Stanley decreased their price target on shares of Micron Technology from $33.00 to $32.00 and set an “equal weight” rating for the company in a research note on Thursday. Cowen increased their price target on shares of Micron Technology to $46.00 and gave the stock an “outperform” rating in a research note on Thursday. Finally, MKM Partners increased their price target on shares of Micron Technology to $50.00 and gave the stock a “buy” rating in a research note on Thursday. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $57.26.

Several hedge funds have recently made changes to their positions in the company. Valueworks LLC bought a new stake in shares of Micron Technology in the fourth quarter worth approximately $1,214,000. MUFG Securities EMEA plc boosted its holdings in shares of Micron Technology by 38.7% in the fourth quarter. MUFG Securities EMEA plc now owns 566,944 shares of the semiconductor manufacturer’s stock worth $17,989,000 after buying an additional 158,326 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Micron Technology by 112.1% in the fourth quarter. American Century Companies Inc. now owns 243,515 shares of the semiconductor manufacturer’s stock worth $7,727,000 after buying an additional 128,703 shares during the last quarter. Fulcrum Equity Management purchased a new position in shares of Micron Technology in the fourth quarter worth approximately $348,000. Finally, Norges Bank purchased a new position in shares of Micron Technology in the fourth quarter worth approximately $365,896,000. Hedge funds and other institutional investors own 74.99% of the company’s stock.

The company has a current ratio of 2.90, a quick ratio of 2.15 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $44.99 billion, a PE ratio of 3.58, a P/E/G ratio of 0.85 and a beta of 1.87.

Micron Technology (NASDAQ:MU) last posted its quarterly earnings data on Wednesday, March 20th. The semiconductor manufacturer reported $1.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.67 by $0.04. The company had revenue of $5.84 billion for the quarter, compared to the consensus estimate of $5.82 billion. Micron Technology had a net margin of 43.56% and a return on equity of 41.60%. The firm’s revenue was down 20.6% compared to the same quarter last year. During the same quarter last year, the firm posted $2.82 earnings per share. On average, analysts anticipate that Micron Technology, Inc. will post 7.39 earnings per share for the current fiscal year.

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Micron Technology Company Profile (NASDAQ:MU)

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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