Macquarie Maintains Micron Technology (MU) to Outperform with Price Target $20.00

MU has been the topic of several other reports.

Topeka reiterated a Buy rating, while lowering the price target from $19 to $16. (NASDAQ:MU), analysts have a consensus 52-week price target of $21.916 on the shares. They noted that the move was a valuation call.

Micron shares fell as much as 6.8 percent in extended trading on Tuesday.

Price targets and estimates are being slashed across the board this morning, and there is at least one downgrade of the stock, that I can see, from Raymond James’s Hans Mosesmann, who cut his rating to Outperform from Strong Buy.

Micron Technology, Inc. (NASDAQ:MU) decreased -4.72% and is at $13.92. The company’s shares are trading below their 50-day and 200-day moving averages by -3.49% and -5.96%, respectively. Market capitalisation for NASDAQ:MU is $15,108,769,350.00 Dollars.

Micron Technology (MU) is the only DRAM (dynamic random-access memory) manufacturer in the US. The semiconductor manufacturer reported $0.24 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.23 by $0.01. Revenues for the first quarter of fiscal 2016 were $3.35 billion and were 7 percent lower compared to the fourth quarter of fiscal 2015 and 27 percent lower compared to the first quarter of fiscal 2015. The company’s revenue for the quarter was down 26.7% on a year-over-year basis. Institutions now own 801.58 million shares which is 13.68% less than the previous share count of 928.62 million in 2015Q2.

Analysts predicted that profit less certain items would be 23 cents per share with revenue equaling $3.48 billion.

It wasn’t all bad news for Micron. Based on this, EPS is anticipated to come out as a loss in the range of $0.12-0.05. Saturna Capital raised its position in shares of Micron Technology by 145.5% in the third quarter. Saturna Capital now owns 75,897 shares of the semiconductor manufacturer’s stock valued at $1,137,000 after buying an additional 44,979 shares during the last quarter.

It also provides NAND Flash products, which are electrically re-writeable, non-volatile semiconductor memory devices; client solid-state drives (SSDs) for notebooks, desktops, workstations, and other consumer applications; enterprise SSDs for server and storage applications; managed multi-chip package products; digital media products, including flash memory cards and JumpDrive products under the Lexar brand name.

Micron Technology Inc forecast a surprise loss for the second quarter, as the memory chipmaker struggles with weak demand for chips used in personal computers and lower average selling prices.

Micron, competes with Samsung Electronics Co Ltd and SK Hynix Inc in the market and in recent times have invested in order to raise its production levels for its higher-margin 20 nm DRAM chips along with developing 3D NAND chips which will be more resourceful and cost-effective. The Company operates in four segments: NAND Solutions Group (NSG), DRAM Solutions Group (DSG), Wireless Solutions Group (WSG) and Embedded Solutions Group (ESG).