Spreng Capital Management Inc. has made a significant investment in Micron Technology, Inc. (NASDAQ: MU), purchasing 2,890 shares valued at approximately $484,000. This acquisition, reported in their latest filing with the Securities and Exchange Commission (SEC), highlights a growing interest in the semiconductor sector as institutional investors seek to capitalize on market potential.
Several other hedge funds have also adjusted their holdings in Micron. Brighton Jones LLC increased its stake by 18.3% in the fourth quarter, acquiring an additional 976 shares, bringing its total ownership to 6,318 shares, valued at $532,000. Advisors Asset Management Inc. raised its holdings by an impressive 151.7% in the first quarter, now owning 31,599 shares worth $2.746 million after purchasing 19,045 shares during that period. Gotham Asset Management LLC and NewEdge Advisors LLC have also expanded their positions, with increases of 12.6% and 14.0%, respectively.
Institutional investors now hold approximately 80.84% of Micron Technology’s stock, indicating strong confidence in the company’s future.
Micron’s Recent Market Performance
As of Monday, Micron Technology’s stock opened at $315.42, reflecting a remarkable rise of 10.5%. The company’s fifty-day moving average stands at $245.87, while its two-hundred-day average is $177.68. Micron has experienced a one-year low of $61.54 and a high of $315.60, establishing a market capitalization of $355.01 billion with a price-to-earnings ratio of 29.98.
Micron Technology recently reported its quarterly earnings on December 17, 2023, announcing earnings per share (EPS) of $4.78. This figure surpasses the consensus estimate of $3.77 by $1.01. The company also noted a net margin of 28.15% and a return on equity of 22.71%, with revenue reaching $13.64 billion, exceeding expectations of $12.62 billion. This represents a remarkable 56.7% increase in revenue compared to the same quarter last year.
Looking ahead, Micron Technology has set its Q2 2026 guidance at an EPS range of 8.220-8.620. Analysts anticipate an average of 6.08 EPS for the current fiscal year.
Dividend Announcement and Insider Transactions
In addition to its strong earnings report, Micron Technology announced a quarterly dividend of $0.115 per share, set to be paid on January 14, 2024. Shareholders of record on December 29, 2023, will receive this dividend, representing an annualized dividend yield of 0.1% and a payout ratio of 4.37%.
Recent insider transactions have also attracted attention. CEO Sanjay Mehrotra sold 22,500 shares on October 27, 2023, at an average price of $220.72, totaling approximately $4.97 million. Following this sale, Mehrotra retains 446,578 shares valued at about $98.57 million, indicating a 4.80% decrease in ownership. Additionally, Executive Vice President April S. Arnzen sold 15,000 shares on December 22, 2023, for approximately $4.16 million, leading to an 8.30% decrease in her ownership.
Insider sales over the past 90 days have amounted to $75.72 million, with corporate insiders currently owning 0.24% of the stock.
Market Sentiment and Analyst Ratings
Analysts and market observers have noted a shift in sentiment regarding Micron Technology. Positive narratives suggest a re-rating of the stock tied to increasing demand for artificial intelligence (AI) and supply constraints, which are enhancing Micron’s pricing power and margin potential. The stock has surged nearly 10% recently, driven by this renewed optimism.
Analyst upgrades have further bolstered confidence. Sanford C. Bernstein raised its price target for Micron Technology to $330, while other firms have reiterated their buy ratings and increased price targets, reflecting an overall positive outlook. Currently, five analysts have rated Micron with a strong buy, while twenty-nine have assigned a buy rating. The stock has an average target price of $284.24.
Despite the bullish sentiment, some analysts caution about potential risks, noting that market dynamics could shift, affecting stock performance. As Micron continues to navigate a rapidly changing landscape, its ability to execute effectively and leverage macroeconomic support will be crucial for sustained growth.
Micron Technology, founded in 1978 and headquartered in Boise, Idaho, specializes in designing and manufacturing memory and storage solutions, including dynamic random-access memory (DRAM) and NAND flash memory. The company serves a diverse array of sectors, including data centers, mobile devices, and automotive systems.
