Micron Technology (NASDAQ:MU) Shares Down 6.3% – Should You Sell?

Micron Technology, Inc. (NASDAQ:MU) shares were down 6.3% during trading on Thursday. The company traded as low as $849.25 and last traded at $856.49. 30,863,984 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 40,817,113 shares. The stock had previously closed at $913.67.

Key Stories Impacting Micron Technology

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

• Positive Sentiment: Micron’s latest results showed exceptional momentum: revenue rose 379% year over year to $54.23 billion, adjusted EPS reached $33.42, and management guided to approximately $61.5 billion in next-quarter revenue. Strong HBM and NAND demand, tight supply and customer commitments extending into 2027 support the long-term AI-memory growth story. Micron Posted a $54.23 Billion Quarter and Guided to $61.5 Billion for Next Quarter
• Positive Sentiment: Wedbush said Micron’s decision to pursue 3D DRAM rather than the competing 4F² architecture could preserve its manufacturing and technology advantage, with next-generation products planned for 2027. Micron Charts a Different Course on DRAM
• Positive Sentiment: Needham and Rosenblatt reaffirmed buy ratings with price targets of $1,650 and $1,900, respectively, implying substantial upside if the memory upcycle persists.
• Neutral Sentiment: Micron introduced a quarterly employee bonus tied to profits, while labor developments in Taiwan remain an important factor for production costs and operational continuity. Micron Introduces Quarterly Employee Bonus Tied to Profits
• Negative Sentiment: Investors are questioning whether AI spending can generate adequate returns, particularly as companies rely more heavily on debt financing. Higher rates and inflation are pressuring valuations across Nvidia, AMD, Micron and other AI-linked names.
• Negative Sentiment: Memory and storage stocks are experiencing heavier selling than the broader technology market after a major rally, raising profit-taking and cyclicality concerns. China’s CXMT is also advancing in server DRAM, creating a longer-term competitive risk.
• Negative Sentiment: An insider sale of 28,545 shares worth approximately $25.7 million and uncertainty surrounding Taiwan labor negotiations added to near-term investor caution.

Analyst Ratings Changes

Several research analysts recently weighed in on MU shares. Cantor Fitzgerald reiterated an “overweight” rating and issued a $2,000.00 price objective on shares of Micron Technology in a research report on Thursday, October 1st. Wedbush reaffirmed an “outperform” rating and issued a $1,400.00 price target on shares of Micron Technology in a research note on Monday, September 28th. Wolfe Research set a $1,500.00 price target on Micron Technology in a report on Thursday, June 25th. New Street Research raised 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, Argus reduced their price objective on shares of Micron Technology from $1,500.00 to $540.00 and set a “buy” rating on the stock in a report on Thursday, June 25th. One 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 data from MarketBeat, Micron Technology has a consensus rating of “Moderate Buy” and an average price target of $1,407.88.

Micron Technology Price Performance

The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.94 and a current ratio of 3.31. The stock’s 50-day moving average is $985.49 and its two-hundred day moving average is $880.07. The stock has a market cap of $969.05 billion, a PE ratio of 11.54, a PEG ratio of 0.16 and a beta of 2.22.

Micron Technology (NASDAQ:MU) last announced its earnings results on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 quarter in the previous year, the company earned $3.03 earnings per share. The firm’s quarterly 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. On average, equities analysts predict that Micron Technology, Inc. will post 177.03 earnings per share for the current year.

Micron Technology Dividend Announcement

The company also recently disclosed 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 dividend yield of 0.1%. The ex-dividend date is Wednesday, October 14th. Micron Technology’s payout ratio is currently 0.81%.

Insider Buying and Selling

In related news, EVP Sumit Sadana sold 15,000 shares of the stock in a transaction dated 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 transaction, the executive vice president owned 191,021 shares of the company’s stock, valued at approximately $178,469,010.09. This represents a 7.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Sanjay Mehrotra sold 40,000 shares of the firm’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $968.90, for a total value of $38,756,000.00. Following the transaction, the chief executive officer owned 264,503 shares of the company’s stock, valued at $256,276,956.70. This trade represents a 13.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 123,545 shares of company stock valued at $115,750,966. Corporate insiders own 0.24% of the company’s stock.

Institutional Trading of Micron Technology

Several hedge funds have recently made changes to their positions in MU. Andar Capital Management HK Ltd grew its holdings in shares of Micron Technology by 856,960.3% in the second 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 in the last quarter. Primecap Management Co. CA acquired a new stake in Micron Technology during the 2nd quarter worth approximately $22,182,263,000. Legal & General Group Plc acquired a new stake in Micron Technology during the 2nd quarter worth approximately $8,402,393,000. Situational Awareness LP boosted its position in Micron Technology by 1,149.0% in the 2nd quarter. Situational Awareness LP now owns 4,828,786 shares of the semiconductor manufacturer’s stock valued at $5,573,819,000 after buying an additional 5,289,124 shares during the period. Finally, Canada Pension Plan Investment Board purchased a new position in Micron Technology in the 2nd quarter valued at approximately $3,761,237,000. Institutional investors and hedge funds own 80.84% of the company’s stock.

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.