Micron Technology’s stock price target saw a significant increase from $215.00 to $325.00 following an update from KeyCorp. This adjustment, made in a research report released on October 26, 2023, reflects the firm’s continued confidence in the semiconductor manufacturer, which they have rated as “overweight.” The new target indicates a potential upside of 44.11% from Micron’s previous closing price.
Other analysts have also recently commented positively on Micron Technology’s performance. Rosenblatt Securities maintained a “buy” rating with a target price of $300.00 in a report published on October 23, 2023. Similarly, Stifel Nicolaus raised their price target for Micron from $195.00 to $300.00 shortly before that, indicating robust support for the stock. Additionally, HSBC began coverage with a “buy” recommendation and a price target of $330.00, while UBS Group reiterated a “buy” rating with a price target of $295.00.
Analysts’ confidence is further reflected in consensus ratings, where five investment analysts have rated Micron Technology as a Strong Buy, with a total of thirty issuing Buy ratings and only two recommending Hold. According to MarketBeat.com, the average target price across analysts stands at $266.71.
Recent Financial Performance
Micron Technology’s financial results have contributed to this optimistic outlook. The company reported its quarterly earnings on December 17, 2023, revealing earnings per share of $4.78, which exceeded analysts’ expectations of $3.77 by $1.01. The semiconductor manufacturer achieved revenues of $13.64 billion for the quarter, surpassing the anticipated $12.62 billion.
The impressive financial performance is underscored by a net margin of 22.84% and a return on equity of 17.21%. Compared to the same quarter last year, revenue increased by 56.7%, with earnings per share jumping from $1.79. Looking ahead, Micron has set its Q2 2026 guidance between $8.220 and $8.620 EPS.
Insider Trading Activity
In addition to analyst ratings, insider trading has been noteworthy. On October 27, 2023, Scott J. Deboer, Executive Vice President, sold 82,000 shares at an average price of $222.81, totaling approximately $18.27 million. This sale reduced his ownership in the company by 34.72%, leaving him with 154,145 shares valued at roughly $34.35 million.
Furthermore, Scott R. Allen, Chief Accounting Officer, sold 8,800 shares on October 20, 2023, for a total of $1.85 million. Following this transaction, he retained 40,237 shares worth approximately $8.45 million, reflecting a 17.95% decrease in his position. Over the past three months, insiders sold a total of 383,650 shares, valued at approximately $81.60 million.
Institutional Investor Activity
The interest from institutional investors remains strong, with several hedge funds recently adjusting their positions in Micron Technology. Painted Porch Advisors LLC acquired a new stake in the third quarter, valued at around $77,000. Strategic Investment Solutions Inc. increased their holdings by 77.3% during the same period, now owning 484 shares worth approximately $81,000.
In total, institutional investors control approximately 80.84% of Micron Technology’s stock, highlighting a robust confidence in the company’s future prospects. As the semiconductor market evolves, Micron Technology’s performance will be closely monitored by both analysts and investors alike.
