Zacks Investment Research upgraded shares of Micron Technology (NASDAQ:MU) from a sell rating to a hold rating in a research note released on Friday.
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 brokerages have also issued reports on MU. Needham & Company LLC lowered Micron Technology from a buy rating to a hold rating in a research report on Wednesday, December 19th. KeyCorp decreased their target price on Micron Technology from $61.00 to $45.00 and set an overweight rating for the company in a research report on Wednesday, December 19th. BidaskClub raised Micron Technology from a sell rating to a hold rating in a research report on Friday, January 25th. Citigroup lowered Micron Technology from a neutral rating to a sell rating and decreased their target price for the company from $35.00 to $30.00 in a research report on Thursday. Finally, Piper Jaffray Companies decreased their target price on Micron Technology to $36.00 and set a neutral rating for the company in a research report on Wednesday, December 19th. Three investment analysts have rated the stock with a sell rating, twelve have given a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of Buy and a consensus target price of $57.26.
NASDAQ MU traded down $2.37 on Friday, reaching $41.62. The company had a trading volume of 46,424,769 shares, compared to its average volume of 30,647,510. The firm has a market capitalization of $49.31 billion, a P/E ratio of 3.52, a PEG ratio of 0.96 and a beta of 1.87. Micron Technology has a 52-week low of $28.39 and a 52-week high of $64.66. The company has a current ratio of 2.25, a quick ratio of 2.15 and a debt-to-equity ratio of 0.10.
Micron Technology (NASDAQ:MU) last released its quarterly earnings results on Wednesday, March 20th. The semiconductor manufacturer reported $1.71 EPS for the quarter, beating analysts’ consensus estimates of $1.67 by $0.04. The business had revenue of $5.84 billion during the quarter, compared to analyst estimates of $5.82 billion. Micron Technology had a return on equity of 40.67% and a net margin of 43.56%. Micron Technology’s quarterly revenue was down 20.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.82 EPS. As a group, sell-side analysts predict that Micron Technology will post 7.25 EPS for the current fiscal year.
Hedge funds and other institutional investors have recently modified their holdings of the business. Kings Point Capital Management lifted its position in Micron Technology by 21.8% in the 4th quarter. Kings Point Capital Management now owns 1,575 shares of the semiconductor manufacturer’s stock worth $50,000 after buying an additional 282 shares during the last quarter. Legacy Financial Advisors Inc. increased its stake in Micron Technology by 29.6% in the 4th quarter. Legacy Financial Advisors Inc. now owns 1,387 shares of the semiconductor manufacturer’s stock worth $44,000 after purchasing an additional 317 shares during the period. Massmutual Trust Co. FSB ADV increased its stake in Micron Technology by 1.4% in the 4th quarter. Massmutual Trust Co. FSB ADV now owns 26,666 shares of the semiconductor manufacturer’s stock worth $846,000 after purchasing an additional 361 shares during the period. Quadrant Capital Group LLC increased its stake in Micron Technology by 15.2% in the 4th quarter. Quadrant Capital Group LLC now owns 3,589 shares of the semiconductor manufacturer’s stock worth $105,000 after purchasing an additional 474 shares during the period. Finally, WESPAC Advisors SoCal LLC increased its stake in Micron Technology by 11.1% in the 4th quarter. WESPAC Advisors SoCal LLC now owns 4,887 shares of the semiconductor manufacturer’s stock worth $155,000 after purchasing an additional 487 shares during the period. Institutional investors and hedge funds own 74.99% of the company’s stock.
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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