Key Takeaways
- Shares of Micron have declined 12% in the past month, currently trading near $861-$863, significantly below the June high above $1,200.
- Mizuho maintained its Outperform stance with a $1,375 target, emphasizing constrained memory supply lasting until 2027.
- The company’s recent quarterly performance exceeded expectations with EPS of $25.11 versus the anticipated $21.39, alongside 345.8% revenue growth year-over-year.
- A total of 35 Wall Street analysts assign Strong Buy or Buy ratings, with an average price target reaching $1,260.31.
- Company insiders have offloaded approximately $167.8 million in shares during the last three months.
Shares of Micron (MU) began Tuesday’s session at $861.00, representing a roughly 12% decline over the last 30 days and substantially below the 52-week peak of $1,255.00.
The recent pullback has caught investors’ attention, yet most Wall Street professionals remain unfazed by the decline.
The memory chipmaker reached heights exceeding $1,200 in late June following an exceptional quarterly report. Earnings per share registered at $25.11, significantly surpassing the Street’s $21.39 estimate. Total revenue reached $41.46 billion, marking a remarkable 345.8% year-over-year increase.
Management also provided optimistic Q4 2026 guidance, projecting EPS between $30.00 and $32.00, indicating continued expansion.
Nevertheless, shares have trended downward since then. Investors question whether these elevated profit margins can persist in an industry characterized by cyclical volatility.
Mizuho’s Vijay Rakesh remains unconvinced by the bearish sentiment. Following meetings with company leadership, he reaffirmed his Outperform rating this week alongside a $1,375 price objective.
According to Rakesh’s analysis, Micron anticipates the DRAM and NAND markets will remain constrained well into 2027, with substantial new capacity not materializing until 2028.
He further suggests that investor sentiment could strengthen if the company sustains gross margins exceeding 80%, which appears achievable given recently established long-term supply contracts.
Wall Street’s Price Objectives and Sentiment
The wider analyst community shares this optimistic outlook. Raymond James elevated its price objective from $1,100 to $1,500. Wells Fargo increased its target from $1,220 to $1,525. Needham pushed even higher, raising its forecast from $1,550 to $1,650 while maintaining a Buy recommendation.
Among 39 analysts covering the stock, the average price target stands at $1,260.31. Four analysts rate it a Strong Buy, 31 assign a Buy rating, and just three recommend a Hold.
Trading at a forward P/E below six times earnings, several analysts view current levels as an attractive entry point.
Rakesh’s valuation framework applies a 5.3x multiple to his 2027 book value projection. The stock presently trades at a forward price-to-book ratio of 3.4 times.
Chinese Competition and Internal Selling Activity
A potential headwind for the stock involves emerging Chinese competitors. Reports suggest Apple has pursued options to source memory chips from China’s CXMT in search of diversified suppliers.
Rakesh dismissed these China-related worries as “overblown,” maintaining that CXMT will concentrate on serving domestic demand and lacks sufficient capability to compete meaningfully in high-bandwidth memory markets.
From an institutional perspective, E. Ohman J or Asset Management expanded its Micron holdings by 3.7% during Q2. Institutional ownership accounts for 80.84% of outstanding shares.
However, insider activity tells a different story. Company insiders have sold 162,179 shares valued at approximately $167.8 million over the past three months. CEO Sanjay Mehrotra divested shares worth around $36 million in May at an average price of $960.38.
Technical indicators show Micron’s 50-day moving average at $971.54, notably above current trading levels, while the 200-day moving average stands at $664.13.
The company distributes a quarterly dividend of $0.15 per share, yielding approximately 0.1%.
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