Micron Technology (NASDAQ:MU) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.
According to Zacks, “Micron's top line is being negatively impacted by the falling demand for semiconductor chips. The U.S.-China trade war is keeping the company under pressure, as most of the demand for its products came from China. Moreover, expected decline in contract pricing for NAND does not bode well for Micron. Additionally, CPU shortages in the client compute market and inventory adjustments with some customers are near-term headwinds. Increasing competition in the industry also remains a concern for the company. Shares have underperformed the S&P 500 index in the year-to-date period. However, we are 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.”
A number of other research firms also recently commented on MU. MKM Partners reaffirmed a “buy” rating and issued a $63.00 target price (down from $77.00) on shares of Micron Technology in a research report on Thursday, September 13th. Deutsche Bank reaffirmed a “buy” rating and issued a $80.00 target price on shares of Micron Technology in a research report on Thursday, September 6th. They noted that the move was a valuation call. Cowen dropped their target price on shares of Micron Technology from $72.00 to $62.00 and set a “buy” rating on the stock in a research report on Tuesday, September 18th. Stifel Nicolaus dropped their target price on shares of Micron Technology from $108.00 to $103.00 and set a “buy” rating on the stock in a research report on Friday, September 21st. Finally, Nomura dropped their target price on shares of Micron Technology from $100.00 to $65.00 and set a “buy” rating on the stock in a research report on Friday, September 21st. Four investment analysts have rated the stock with a sell rating, ten have issued a hold rating, nineteen have assigned a buy rating and two have issued a strong buy rating to the company. The company has an average rating of “Buy” and an average price target of $64.51.
Micron Technology (NASDAQ:MU) last announced its quarterly earnings data on Thursday, September 20th. The semiconductor manufacturer reported $3.53 EPS for the quarter, beating the Zacks’ consensus estimate of $3.33 by $0.20. Micron Technology had a net margin of 46.51% and a return on equity of 51.68%. The company had revenue of $8.44 billion for the quarter, compared to the consensus estimate of $8.25 billion. During the same period in the prior year, the firm posted $2.02 EPS. The company’s quarterly revenue was up 37.5% compared to the same quarter last year. As a group, equities research analysts expect that Micron Technology will post 9.86 EPS for the current year.
Several institutional investors and hedge funds have recently made changes to their positions in MU. Acadian Asset Management LLC increased its holdings in shares of Micron Technology by 26.9% in the 2nd quarter. Acadian Asset Management LLC now owns 15,287 shares of the semiconductor manufacturer’s stock valued at $801,000 after purchasing an additional 3,245 shares in the last quarter. Cognios Capital LLC increased its holdings in Micron Technology by 20.2% during the 2nd quarter. Cognios Capital LLC now owns 22,853 shares of the semiconductor manufacturer’s stock valued at $1,198,000 after acquiring an additional 3,838 shares in the last quarter. Fiera Capital Corp purchased a new position in Micron Technology during the 2nd quarter valued at about $718,000. Robeco Institutional Asset Management B.V. increased its holdings in Micron Technology by 42.6% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 1,107,387 shares of the semiconductor manufacturer’s stock valued at $58,074,000 after acquiring an additional 330,764 shares in the last quarter. Finally, FineMark National Bank & Trust purchased a new position in Micron Technology during the 2nd quarter valued at about $201,000. Institutional investors and hedge funds own 74.46% of the company’s stock.
Micron Technology Company Profile
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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