Erste Group Bank Issues Optimistic Estimate for MU Earnings

Micron Technology, Inc. (NASDAQ:MU) – Analysts at Erste Group Bank boosted their FY2027 earnings per share (EPS) estimates for Micron Technology in a research note issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the semiconductor manufacturer will post earnings of $173.31 per share for the year, up from their prior forecast of $156.41. Erste Group Bank currently has a “Buy” rating on the stock. The consensus estimate for Micron Technology’s current full-year earnings is $175.82 per share.

Micron Technology (NASDAQ:MU) last released its quarterly earnings data on Wednesday, September 30th. The semiconductor manufacturer reported $33.42 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 business had revenue of $54.23 billion during the quarter, compared to the consensus estimate of $51.33 billion. During the same quarter in the prior year, the company posted $3.03 earnings per share. The firm’s revenue was up 379.1% on a year-over-year basis. Micron Technology has set its Q1 2027 guidance at 37.150-39.150 EPS.

Several other research analysts have also weighed in on the stock. Weiss Ratings raised shares of Micron Technology from a “buy (b)” rating to a “buy (b+)” rating in a research note on Monday. Argus cut their target price 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. Seaport Research Partners reissued a “buy” rating on shares of Micron Technology in a research report on Friday, August 14th. Morgan Stanley reissued an “overweight” rating and set a $1,200.00 price target on shares of Micron Technology in a research report on Thursday, October 1st. Finally, Wolfe Research set a $1,500.00 price target on shares of Micron Technology in a report on Thursday, June 25th. One equities 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 company’s stock. According to data from MarketBeat, Micron Technology currently has an average rating of “Moderate Buy” and a consensus target price of $1,407.88.

Micron Technology Price Performance

Micron Technology stock opened at $953.19 on Wednesday. The firm has a market capitalization of $1.08 trillion, a P/E ratio of 12.84, a PEG ratio of 0.17 and a beta of 2.22. Micron Technology has a 1 year low of $186.25 and a 1 year high of $1,255.00. The business has a 50-day moving average of $984.44 and a 200-day moving average of $853.14. The company has a current ratio of 3.31, a quick ratio of 2.94 and a debt-to-equity ratio of 0.03.

Institutional Trading of Micron Technology

A number of institutional investors have recently made changes to their positions in the business. M.E. Allison & CO. Inc. increased its position in shares of Micron Technology by 0.8% in the second quarter. M.E. Allison & CO. Inc. now owns 1,324 shares of the semiconductor manufacturer’s stock valued at $1,528,000 after buying an additional 11 shares in the last quarter. Ables Iannone Moore & Associates Inc. grew its stake in Micron Technology by 5.3% in the 3rd quarter. Ables Iannone Moore & Associates Inc. now owns 237 shares of the semiconductor manufacturer’s stock valued at $252,000 after acquiring an additional 12 shares during the last quarter. Koesten Hirschmann & Crabtree INC. grew its stake in Micron Technology by 5.6% in the 3rd quarter. Koesten Hirschmann & Crabtree INC. now owns 228 shares of the semiconductor manufacturer’s stock valued at $243,000 after acquiring an additional 12 shares during the last quarter. Cherrydale Wealth Management LLC increased its holdings in Micron Technology by 1.4% during the 2nd quarter. Cherrydale Wealth Management LLC now owns 972 shares of the semiconductor manufacturer’s stock valued at $1,122,000 after acquiring an additional 13 shares in the last quarter. Finally, Bellevue Asset Management LLC increased its holdings in Micron Technology by 25.5% during the 2nd quarter. Bellevue Asset Management LLC now owns 64 shares of the semiconductor manufacturer’s stock valued at $74,000 after acquiring an additional 13 shares in the last quarter. Institutional investors own 80.84% of the company’s stock.

Insider Activity

In related news, CEO Sanjay Mehrotra sold 40,000 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $968.90, for a total transaction of $38,756,000.00. Following the completion of the transaction, the chief executive officer directly owned 264,503 shares in the company, valued at approximately $256,276,956.70. This trade represents a 13.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Scott R. Allen sold 879 shares of Micron Technology stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $1,000.00, for a total value of $879,000.00. Following the completion of the sale, the chief accounting officer directly owned 34,958 shares in the company, valued at approximately $34,958,000. This represents a 2.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 95,879 shares of company stock worth $90,939,466 over the last three months. Corporate insiders own 0.24% of the company’s stock.

Micron Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 29th. Shareholders of record on Wednesday, October 14th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Wednesday, October 14th. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. Micron Technology’s dividend payout ratio (DPR) is currently 0.81%.

More Micron Technology News

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

• Positive Sentiment: Earnings estimates and analyst support improved. Erste Group raised its FY2027 EPS forecast to $173.31 from $156.41 and maintained a Buy rating, while Rosenblatt reaffirmed its Buy rating with a $1,900 price target. Analysts remain bullish on Micron’s HBM4 ramp, higher 2027 contract pricing and potential margin expansion. Micron analyst estimates
• Positive Sentiment: Long-term customer agreements are reducing cycle risk. Micron has increased its strategic customer agreements to 26, up from 16 three months earlier. The contracts establish longer-term pricing frameworks, cover a significant portion of fiscal 2027 output and improve visibility into demand despite the memory market’s traditional cyclicality. Micron customer contracts article
• Positive Sentiment: Customer concentration risk has declined. Micron’s fiscal 2026 annual report showed that no individual customer represented at least 10% of revenue, compared with one customer accounting for 17% the prior year. Elon Musk also praised Micron’s relatively reasonable approach to future memory pricing, potentially supporting long-term customer relationships. Elon Musk Micron pricing article
• Positive Sentiment: Capital returns provide valuation support. Micron authorized approximately $35 billion in share repurchases, signaling management’s confidence in cash generation and potentially creating demand for the shares.
• Neutral Sentiment: Micron’s fiscal fourth-quarter revenue reached $54.23 billion, up 379% year over year, while adjusted EPS exceeded expectations. However, the stock’s low forward earnings multiple also reflects investor concern that these results may represent peak-cycle profitability.
• Negative Sentiment: China competition is the primary source of selling pressure. ChangXin Memory Technologies (CXMT) reported progress on a denser “4F square” DRAM design and plans to target server memory. Investors fear that successful commercialization could eventually pressure Micron’s pricing power and margins, although production scale, yields and customer validation remain unproven. Chinese competition and Micron article
• Negative Sentiment: Additional risks include a possible labor strike at Micron’s Taoyuan, Taiwan facility, the $600 million Netlist patent settlement payable over five years, and profit-taking after the stock’s substantial year-to-date advance.

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.