Micron Technology (NASDAQ:MU) Stock Falls 5.8% – Should You Sell?

Micron Technology, Inc. (NASDAQ:MU)’s stock price dropped 5.8% during mid-day trading on Monday. The stock traded as low as $829.24 and last traded at $833.59. 29,151,443 shares traded hands during trading, a decline of 28% from the average session volume of 40,322,469 shares. The stock had previously closed at $884.74.

Micron Technology News Summary

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

• Positive Sentiment: Apple expects memory prices to keep rising beyond its December quarter, a sign of continued pricing strength that could support Micron’s revenue and margins. Apple Says It Will Keep Paying More for Memory Chips After December
• Positive Sentiment: A bullish outlook argues that AI-driven memory demand and chip shortages may persist, supporting the case for continued growth. Prediction: Micron Stock Will Triple in 2027
• Negative Sentiment: Investors reportedly grew concerned that Democratic election gains could slow AI data-center construction. If spending is delayed, memory demand could weaken, inventories rise and Micron’s pricing power fade. Why Micron Stock Is Falling Today
• Negative Sentiment: Memory and storage shares sold off even as the broader market advanced, reflecting concern about AI investment plans and whether higher memory costs could curb hardware demand. Micron Stock Faces a Memory Price Conundrum in Wake of Democrat Success
• Negative Sentiment: Market commentator Tom Sosnoff warned that the semiconductor selloff could have further to run, adding near-term risk for MU. Micron Stock Ranks at Top of the Funnel, but Chip Selloff Has Room to Run

Analysts Set New Price Targets

MU has been the subject of several recent research reports. Susquehanna reiterated a “positive” rating on shares of Micron Technology in a research report on Thursday, October 1st. Sanford C. Bernstein reissued an “outperform” rating on shares of Micron Technology in a report on Thursday, October 1st. KeyCorp restated an “overweight” rating on shares of Micron Technology in a research note on Thursday, October 1st. Weiss Ratings lowered Micron Technology from a “buy (b+)” rating to a “buy (b)” rating in a report on Tuesday, October 27th. Finally, Raymond James Financial reiterated an “outperform” rating on shares of Micron Technology in a research report on Thursday, October 1st. One research analyst has rated the stock with a Strong Buy rating, forty-one have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Micron Technology has a consensus rating of “Moderate Buy” and a consensus price target of $1,407.88.

Micron Technology Price Performance

The firm’s 50-day moving average is $972.16 and its 200-day moving average is $751.90. The company has a quick ratio of 2.94, a current ratio of 3.31 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $899.74 billion, a PE ratio of 11.44, a price-to-earnings-growth ratio of 0.15 and a beta of 2.36.

Micron Technology (NASDAQ:MU) last announced its quarterly earnings data on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share for the quarter, beating analysts’ consensus estimates of $31.77 by $1.65. The company had revenue of $54.23 billion for the quarter, compared to analysts’ expectations of $51.33 billion. Micron Technology had a return on equity of 92.62% and a net margin of 63.80%. Micron Technology’s revenue for the quarter was up 379.1% compared to the same quarter last year. During the same period last year, the firm posted $3.03 EPS. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS. Equities analysts predict that Micron Technology, Inc. will post 177.03 earnings per share for the current fiscal year.

Micron Technology Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 29th. Stockholders of record on Wednesday, October 14th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Wednesday, October 14th. Micron Technology’s payout ratio is presently 0.81%.

Insider Activity

In related news, insider Scott Deboer sold 28,545 shares of the stock in a transaction on Friday, October 16th. The shares were sold at an average price of $900.00, for a total transaction of $25,690,500.00. Following the transaction, the insider owned 147,430 shares of the company’s stock, valued at approximately $132,687,000. This trade represents a 16.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Sumit Sadana sold 15,000 shares of Micron Technology stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $934.29, for a total transaction of $14,014,350.00. Following the completion of the transaction, the executive vice president owned 191,021 shares in the company, valued at approximately $178,469,010.09. The trade was a 7.28% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 83,545 shares of company stock valued at $78,460,850. Corporate insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Micron Technology

Institutional investors have recently bought and sold shares of the stock. Andar Capital Management HK Ltd raised its position in Micron Technology by 856,960.3% during the 2nd quarter. Andar Capital Management HK Ltd now owns 34,282,413 shares of the semiconductor manufacturer’s stock valued at $39,571,847,000 after purchasing an additional 34,278,413 shares during the last quarter. Primecap Management Co. CA purchased a new position in shares of Micron Technology during the second quarter valued at approximately $22,182,263,000. Legal & General Group Plc bought a new stake in Micron Technology in the second quarter valued at $8,402,393,000. Situational Awareness LP boosted its holdings in Micron Technology by 1,149.0% in the second quarter. Situational Awareness LP now owns 4,828,786 shares of the semiconductor manufacturer’s stock valued at $5,573,819,000 after acquiring an additional 5,289,124 shares in the last quarter. Finally, Canada Pension Plan Investment Board bought a new position in Micron Technology in the 2nd quarter worth $3,761,237,000. 80.84% of the stock is currently 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 products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.

The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.