Micron Technology (NASDAQ: MU) has received a significant boost from KeyCorp, which raised its price target for the semiconductor manufacturer from $215.00 to $325.00. This adjustment, reported on October 13, 2023, indicates a potential upside of approximately 44.11% based on Micron’s last closing price. KeyCorp maintains an “overweight” rating on the stock, suggesting confidence in the company’s growth prospects.
The positive sentiment surrounding Micron Technology is echoed by several other research firms. For instance, Rosenblatt Securities reiterated a “buy” rating and set a target price of $300.00 on October 9, 2023. Stifel Nicolaus also raised its price target from $195.00 to $300.00, affirming a “buy” rating on December 12, 2023. Additionally, HSBC initiated coverage on Micron with a “buy” rating and a target price of $330.00, while UBS Group reaffirmed a “buy” rating with a $295.00 target on December 11, 2023.
Overall, the consensus rating for Micron Technology stands at “Buy,” with an average price target of approximately $266.71, according to MarketBeat.com. Analysts are optimistic about the company, with five rating the stock as a “Strong Buy,” thirty as a “Buy,” and two as a “Hold.”
Strong Quarterly Performance
Micron Technology’s recent quarterly earnings reveal robust performance. The company announced its results on December 17, 2023, reporting earnings per share (EPS) of $4.78, surpassing analyst expectations of $3.77 by $1.01. The company’s revenue for the quarter reached $13.64 billion, significantly higher than the consensus estimate of $12.62 billion.
This impressive growth is reflected in a year-over-year revenue increase of 56.7%. Last year, Micron posted an EPS of $1.79. For the upcoming quarter, the company has set guidance for Q2 2026 at an EPS range of 8.220-8.620. Analysts project an average EPS of 6.08 for the current year, further indicating confidence in Micron’s continued success.
Insider Trading and Institutional Investments
Recent insider activity has also caught attention. On October 27, 2023, Executive Vice President Scott J. Deboer sold 82,000 shares at an average price of $222.81, totaling over $18 million. Following this transaction, Deboer retained 154,145 shares, valued at approximately $34.3 million. This sale represents a 34.72% decrease in his ownership of the stock.
Similarly, Chief Accounting Officer Scott R. Allen sold 8,800 shares on October 20, 2023, at an average price of $210.02, amounting to nearly $1.85 million. Following this sale, Allen held 40,237 shares, valued at around $8.45 million, indicating a 17.95% reduction in his stake.
In the last 90 days, insiders have sold a total of 383,650 shares, valued at approximately $81.6 million. Currently, insiders own 0.24% of the company’s stock, while institutional investors hold a dominant 80.84% of shares.
Several institutional investors have recently made moves regarding Micron Technology. For instance, Painted Porch Advisors LLC acquired a new position in the third quarter, valued at around $77,000. Strategic Investment Solutions Inc. increased its position by 77.3%, now holding 484 shares worth $81,000.
Severin Investments LLC also entered a new stake valued at $475,000, and Allworth Financial LP raised its holdings by 19.9% to 31,079 shares, valued at $5.2 million. IFP Advisors Inc. also increased its stake by 1.4%, now owning 16,159 shares worth $2.7 million.
About Micron Technology
Micron Technology, Inc. is a prominent player in the semiconductor industry, specializing in the design, development, manufacturing, and sale of memory and storage products globally. The company operates through four main segments: Compute and Networking, Mobile, Embedded, and Storage Business Units. Micron’s product offerings include dynamic random-access memory (DRAM) devices, non-volatile semiconductor storage products, and re-writable memory devices, marketed under its Micron and Crucial brands, as well as through private labels.
As the semiconductor market continues to evolve, Micron Technology appears well-positioned to capitalize on increasing demand for memory and storage solutions. The recent price target increases and positive earnings report suggest that investors may have reason to be optimistic about the company’s future prospects.
