Micron Technology (NASDAQ:MU) Shares Down 3.6% – Here’s Why

Micron Technology, Inc. (NASDAQ:MU) shares fell 3.6% during mid-day trading on Tuesday. The stock traded as low as $929.03 and last traded at $953.19. 28,819,866 shares were traded during trading, a decline of 30% from the average daily volume of 41,276,543 shares. The stock had previously closed at $989.04.

Micron Technology News Roundup

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

• Positive Sentiment: Micron reported fiscal fourth-quarter revenue of $54.23 billion, up roughly 379% year over year, and adjusted earnings of $33.42 per share, exceeding analyst expectations. Management also issued strong fiscal 2027 guidance. A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be?
• Positive Sentiment: The company has secured commitments covering more than 75% of its fiscal 2027 output, while customers are discussing 2028 allocations. This visibility could help protect revenue and pricing as AI-driven demand for high-bandwidth memory and server DRAM remains strong.
• Positive Sentiment: Micron raised its share-repurchase authorization to approximately $35 billion. Analysts including Rosenblatt and Erste Group maintained bullish views, while other coverage argues that MU remains inexpensive relative to its growth and profitability.
• Neutral Sentiment: Micron’s HBM4 ramp-up and higher 2027 contract prices could support additional margin expansion, but production costs, yields and the durability of peak-cycle earnings remain important investor concerns. Micron’s HBM4 Ramp-Up: Can Higher Pricing Lift Margins Further?
• Negative Sentiment: China’s ChangXin Memory Technologies (CXMT) said it had made progress on a denser “4F square” DRAM architecture and plans to target high-end server memory. Investors fear this could eventually increase supply, pressure pricing power and challenge Micron’s most profitable market. Memory chip stocks fall as China’s latest development rattles investors
• Negative Sentiment: A potential labor strike at Micron’s Taoyuan, Taiwan, operations adds near-term production and delivery risk, although no strike date has been announced. Investors are also monitoring a $600 million Netlist settlement, insider selling and broader profit-taking across semiconductor stocks.

Wall Street Analyst Weigh In

Several brokerages recently commented on MU. Citigroup increased their price objective on shares of Micron Technology from $1,150.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday, September 23rd. DA Davidson upped their price target on shares of Micron Technology from $2,100.00 to $3,000.00 and gave the company a “buy” rating in a research note on Wednesday, October 7th. Wells Fargo & Company decreased their price target on shares of Micron Technology from $1,525.00 to $1,400.00 and set an “overweight” rating for the company in a report on Wednesday, September 23rd. Needham & Company LLC reiterated a “buy” rating and set a $1,650.00 price objective on shares of Micron Technology in a research note on Thursday, October 1st. Finally, Barclays lifted their price objective on shares of Micron Technology from $1,175.00 to $2,000.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $1,407.88.

Micron Technology Trading Down 3.6%

The stock has a 50-day moving average of $983.23 and a 200 day moving average of $849.12. The stock has a market cap of $1.08 trillion, a PE ratio of 12.84, a price-to-earnings-growth ratio of 0.18 and a beta of 2.22. The company has a quick ratio of 2.94, a current ratio of 3.31 and a debt-to-equity ratio of 0.03.

Micron Technology (NASDAQ:MU) last posted its quarterly earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $31.77 by $1.65. Micron Technology had a net margin of 63.80% and a return on equity of 92.62%. The company had revenue of $54.23 billion during the quarter, compared to analyst estimates of $51.33 billion. During the same period last year, the firm posted $3.03 EPS. Micron Technology’s revenue for the quarter 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, sell-side analysts anticipate that Micron Technology, Inc. will post 175.82 earnings per share for the current year.

Micron Technology Announces Dividend

The firm 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 dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. The ex-dividend date of this dividend is Wednesday, October 14th. Micron Technology’s dividend payout ratio (DPR) is 0.81%.

Insider Activity at Micron Technology

In related news, CAO Scott Allen sold 879 shares of the business’s stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total transaction of $879,000.00. Following the completion of the transaction, the chief accounting officer directly owned 34,958 shares in the company, valued at $34,958,000. The trade was a 2.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Sanjay Mehrotra sold 40,000 shares of the company’s stock in a transaction on Friday, August 21st. The shares were 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 directly owned 264,503 shares in the company, valued at approximately $256,276,956.70. The trade was a 13.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 95,879 shares of company stock worth $90,939,466 over the last three months. Company insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Micron Technology

Institutional investors have recently made changes to their positions in the company. Denali Advisors LLC acquired a new stake in shares of Micron Technology in the second quarter worth $7,364,000. Castleark Management LLC purchased a new position in shares of Micron Technology during the first quarter valued at $3,709,000. Legacy Wealth Management LLC MS grew its holdings in shares of Micron Technology by 73.3% during the second quarter. Legacy Wealth Management LLC MS now owns 3,544 shares of the semiconductor manufacturer’s stock valued at $4,091,000 after buying an additional 1,499 shares in the last quarter. Oppenheimer & Co. Inc. raised its position in Micron Technology by 16.0% during the second quarter. Oppenheimer & Co. Inc. now owns 48,520 shares of the semiconductor manufacturer’s stock valued at $56,006,000 after buying an additional 6,702 shares during the period. Finally, Franklin Street Advisors Inc. NC raised its position in Micron Technology by 2,461.4% during the second quarter. Franklin Street Advisors Inc. NC now owns 37,141 shares of the semiconductor manufacturer’s stock valued at $42,871,000 after buying an additional 35,691 shares during the period. 80.84% of the stock is owned by hedge funds and other institutional investors.

About Micron Technology

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.