Micron Technology Shares Decline 1.6% After Price Target Downgrade by Morgan Stanley

Micron Technology, Inc. (NASDAQ:MU) experienced a decrease of 1.6% in its stock value during mid-day trading on Tuesday. This drop followed a decision by Morgan Stanley to revise their price target for the company's shares, lowering it from $98.00 to $91.00. Morgan Stanley has assigned an equal weight rating to Micron Technology stock.

During the trading session, Micron Technology shares marked a low of $88.73 and eventually closed at $89.63. The trading volume for the day was approximately 11,800,899 shares, reflecting a significant decline of 54% compared to the average daily volume of 25,701,277 shares. The stock had previously closed at $91.11.

In addition to Morgan Stanley's downgrade, Micron Technology has been the focus of various other research reports recently. On December 18th, Sanford C. Bernstein lowered their price target from $140.00 to $120.00 while maintaining an "outperform" rating. Similarly, TD Cowen reduced their price objective from $135.00 to $125.00, assigning a "buy" rating on December 19th. On the same day, JPMorgan Chase & Co. decreased their price target from $180.00 to $145.00 and also rated the stock as "overweight." Barclays revised their price target downward from $145.00 to $110.00 with an "overweight" rating. Finally, Needham & Company LLC adjusted their target from $140.00 to $120.00 while maintaining a "buy" rating on December 19th.

Overall, the evaluations from analysts show a mix of sentiments. Currently, one analyst has given a sell rating, three have issued hold ratings, and twenty-three analysts have assigned a buy rating to Micron Technology's stock. According to MarketBeat.com, the average rating for the stock is categorized as a "Moderate Buy" with an average price target of $134.96.

Recent Insider Transactions

In related developments, April S. Arnzen, Executive Vice President of Micron Technology, sold 4,890 shares of the company on December 20th at an average price of $85.21. This sale amounted to approximately $416,676.90. Following this transaction, Arnzen now holds 181,223 shares of Micron Technology, valued at around $15,442,011.83, indicating a decrease of 2.63% in their ownership. This transaction has been recorded in a filing with the SEC and is accessible to the public. Notably, company insiders collectively own 0.30% of the company's stock.

Institutional Investment Activity

Recent trends show that institutional investors and hedge funds are actively buying and selling shares of Micron Technology. Highline Wealth Partners LLC made a new investment in Micron shares during the third quarter worth about $26,000, while Davis Capital Management purchased a stake worth approximately $30,000 during the same period. True Wealth Design LLC reported a staggering 1,096.3% increase in their stakes, owning 323 shares valued at $33,000 after acquiring an additional 296 shares. Likewise, DT Investment Partners LLC lifted their position by 261.1%, now owning 325 shares valued at $34,000 after an additional purchase of 235 shares. Stone House Investment Management also increased their holdings by 602.2%, owning 323 shares worth $34,000. Overall, institutional investors and hedge funds hold 80.84% of Micron Technology's outstanding stock.

Micron Technology's Financial Performance

Micron Technology boasts a market capitalization of approximately $99.21 billion, a price-to-earnings (PE) ratio of 25.66, and a beta of 1.18. Financial ratios indicate a debt-to-equity ratio of 0.28, a quick ratio of 1.75, and a current ratio of 2.72. The company's 50-day and 200-day moving averages are $98.04 and $100.48, respectively.

Recently, Micron Technology reported its quarterly earnings data on December 18th. The semiconductor firm recorded earnings of $1.79 per share for the quarter, exceeding the consensus estimate of $1.60 by $0.19. They declared a net margin of 13.34% and a return on equity of 8.32%. Revenue during the quarter was $8.71 billion, aligning with analyst expectations. Comparatively, the company faced a loss of ($0.95) EPS during the same quarter the previous year, marking an impressive revenue growth of 84.3% year-over-year. Analysts predict that Micron Technology is set to report earnings per share of 6.29 for the current fiscal year.

Dividend Information

The company declared a quarterly dividend, which was issued on January 15th. Shareholders of record on December 30th received a dividend of $0.115, with the ex-dividend date also on December 30th, resulting in an annualized dividend yield of 0.52%. Micron's dividend payout ratio stands at 13.26%.

Company Overview

Micron Technology, Inc. is engaged in the design, development, manufacture, and sale of memory and storage products on a global scale. The company's operations are segmented into four main areas: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. Their products include dynamic random access memory (DRAM) semiconductor devices offering high-speed data retrieval and a range of non-volatile memory and storage solutions branded under Micron and Crucial, as well as other private labels.

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