Micron Technology (MU) Raised to “Hold” at Zacks Investment Research
Micron Technology (NASDAQ:MU) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Micron is benefiting from strong demand for data centers and cloud computing which is leading to growth in sales of DRAM and NAND solutions. Mobile, automotive, industrial, IoT also represent significant growth opportunity for the company. We remain positive about the company’s strategy of enhancing its capabilities through acquisitions, which are likely to boost its top line in the long run. Estimates have been stable lately ahead of the company’s Q1 earnings release. The company has positive record of earnings surprises in recent quarters. However, the U.S.-China trade war is keeping the company under pressure. Moreover, expected decline in contract pricing for NAND does not bode well for Micron. Besides, CPU shortages in the client compute market and inventory adjustments with some customers are near-term headwinds. Shares have underperformed the S&P 500 index in the year-to-date period.”
MU has been the subject of several other reports. BidaskClub downgraded Micron Technology from a “hold” rating to a “sell” rating in a report on Friday, August 17th. Royal Bank of Canada restated an “outperform” rating and issued a $70.00 price target on shares of Micron Technology in a report on Tuesday, September 18th. Piper Jaffray Companies set a $48.00 price objective on Micron Technology and gave the stock a “hold” rating in a research report on Saturday, October 20th. Goldman Sachs Group cut Micron Technology from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $68.00 to $50.00 in a research report on Wednesday, September 12th. Finally, Susquehanna Bancshares cut Micron Technology from a “positive” rating to a “neutral” rating and reduced their price objective for the stock from $75.00 to $45.00 in a research report on Tuesday, October 23rd. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, eighteen have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. Micron Technology presently has a consensus rating of “Buy” and an average target price of $65.69.
Micron Technology (NASDAQ:MU) last announced its quarterly earnings results on Thursday, September 20th. The semiconductor manufacturer reported $3.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.33 by $0.20. Micron Technology had a return on equity of 51.68% and a net margin of 46.51%. The company had revenue of $8.44 billion during the quarter, compared to the consensus estimate of $8.25 billion. During the same period in the prior year, the company earned $2.02 earnings per share. The company’s revenue for the quarter was up 37.5% compared to the same quarter last year. On average, equities analysts anticipate that Micron Technology will post 9.88 EPS for the current fiscal year.
A number of hedge funds and other institutional investors have recently modified their holdings of MU. Capital World Investors acquired a new position in Micron Technology during the third quarter valued at approximately $1,136,492,000. AQR Capital Management LLC lifted its position in shares of Micron Technology by 75.5% in the third quarter. AQR Capital Management LLC now owns 28,530,556 shares of the semiconductor manufacturer’s stock valued at $1,290,438,000 after buying an additional 12,269,445 shares during the last quarter. Senator Investment Group LP acquired a new stake in shares of Micron Technology in the second quarter valued at approximately $140,277,000. Point72 Asset Management L.P. lifted its position in shares of Micron Technology by 632.0% in the second quarter. Point72 Asset Management L.P. now owns 2,027,604 shares of the semiconductor manufacturer’s stock valued at $106,328,000 after buying an additional 1,750,604 shares during the last quarter. Finally, Natixis lifted its position in shares of Micron Technology by 345.7% in the second quarter. Natixis now owns 2,028,745 shares of the semiconductor manufacturer’s stock valued at $106,388,000 after buying an additional 1,573,549 shares during the last quarter. 74.14% of the stock is owned by hedge funds and other institutional investors.
About Micron Technology
Micron Technology, Inc manufactures and sells memory and storage solutions worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It offers memory and storage technologies, including DRAM, NAND, NOR Flash, and 3D XPoint memory under the Micron, Crucial, and Ballistix brands, as well as private labels.
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