Zacks Investment Research Lowers Micron Technology (MU) to Sell

Zacks Investment Research cut shares of Micron Technology (NASDAQ:MU) from a hold rating to a sell rating in a report published on Thursday.

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, CPU shortages in the client compute market and inventory adjustments with some customers are near-term headwinds.  The persistent decline in DRAM and NAND pricing due to oversupply and weaker-than-expected growth in end-market demand does not bode well. The company recently mentioned that it expects revenues in Q1 to be near the lower end of the prior outlook as market demand softened through the quarter. 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.”

Several other analysts have also weighed in on MU. MKM Partners reiterated a buy rating and set a $63.00 target price (down previously from $77.00) on shares of Micron Technology in a research note on Thursday, September 13th. Deutsche Bank reiterated a buy rating and set a $80.00 target price on shares of Micron Technology in a research note on Thursday, September 6th. They noted that the move was a valuation call. Cowen lowered their target price on shares of Micron Technology from $72.00 to $62.00 and set a buy rating for the company in a research note on Tuesday, September 18th. Stifel Nicolaus lowered their target price on shares of Micron Technology from $108.00 to $103.00 and set a buy rating for the company in a research note on Friday, September 21st. Finally, Nomura lowered their target price on shares of Micron Technology from $100.00 to $65.00 and set a buy rating for the company in a research note on Friday, September 21st. Four equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, nineteen have given a buy rating and two have assigned a strong buy rating to the company. Micron Technology has an average rating of Buy and a consensus price target of $63.70.

MU opened at $34.20 on Thursday. The firm has a market capitalization of $38.31 billion, a P/E ratio of 2.89, a P/E/G ratio of 0.56 and a beta of 1.63. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.16 and a current ratio of 2.79. Micron Technology has a 12-month low of $33.82 and a 12-month high of $64.66.

Micron Technology (NASDAQ:MU) last posted its quarterly earnings results on Thursday, September 20th. The semiconductor manufacturer reported $3.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.33 by $0.20. The firm had revenue of $8.44 billion for the quarter, compared to analysts’ expectations of $8.25 billion. Micron Technology had a net margin of 46.51% and a return on equity of 51.68%. The firm’s quarterly revenue was up 37.5% on a year-over-year basis. During the same period in the prior year, the company posted $2.02 earnings per share. As a group, equities research analysts anticipate that Micron Technology will post 9.59 EPS for the current fiscal year.

Several institutional investors have recently added to or reduced their stakes in the company. Cognios Capital LLC grew its holdings in shares of Micron Technology by 20.2% during the 2nd quarter. Cognios Capital LLC now owns 22,853 shares of the semiconductor manufacturer’s stock worth $1,198,000 after acquiring an additional 3,838 shares during the period. FTB Advisors Inc. purchased a new position in shares of Micron Technology during the 2nd quarter worth approximately $850,000. Greenleaf Trust grew its holdings in shares of Micron Technology by 22.5% during the 2nd quarter. Greenleaf Trust now owns 18,500 shares of the semiconductor manufacturer’s stock worth $970,000 after acquiring an additional 3,395 shares during the period. Advisors Preferred LLC grew its holdings in shares of Micron Technology by 95.3% during the 2nd quarter. Advisors Preferred LLC now owns 3,252 shares of the semiconductor manufacturer’s stock worth $171,000 after acquiring an additional 1,587 shares during the period. Finally, Usca Ria LLC grew its holdings in shares of Micron Technology by 16.8% during the 2nd quarter. Usca Ria LLC now owns 18,980 shares of the semiconductor manufacturer’s stock worth $995,000 after acquiring an additional 2,730 shares during the period. Institutional investors and hedge funds own 74.34% of the company’s stock.

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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