Micron Technology Inc (NASDAQ:MU) shares are trading higher Monday following a pair of positive analyst updates. Here's what you need to know.
What Happened: BofA Securities analyst Vivek Arya maintained Micron with a Buy rating on Monday and raised the price target from $144 to $170. Susquehanna analyst Mehdi Hosseini also maintained Micron with a Positive rating and raised the price target from $143 to $185.
The upward price target revisions come just over a week before earnings. Micron is set to report third-quarter financial results after the market close on June 26. The company is expected to report earnings of 49 cents per share on revenue of $6.634 billion, according to estimates from Benzinga Pro.
Analyst revisions have been positive for Micron in recent months, according to Benzinga's analyst data. Despite the positive analyst coverage, the consensus price target currently sits at $129.92, suggesting potential downside from current levels.
Is MU A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Micron Technology's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Micron does pay a dividend, which yields 0.6% per year as of the closing price on June 17, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Micron Technology will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
MU Price Action: Micron shares were up 3.13% at $145.78 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Micron.