TLDR
- Micron stock rose nearly 1% in Thursday’s premarket, trading around $945, with no specific company catalyst driving the move.
- SK Hynix plans a $29 billion buyback; Samsung is reportedly planning one worth over 100 trillion won; Kioxia just completed a ~$5 billion buyback.
- Micron is blocked from major buybacks due to its 2024 Chips Act funding conditions, with restrictions expiring December 9, 2026.
- Analysts expect Micron to earn $31.27 per share on revenue of $50.81 billion at its estimated September 22 earnings report.
- The stock carries an average analyst price target of $1,537.50, with Cantor Fitzgerald the most bullish at $2,000.
Micron Technology (MU) stock edged up nearly 1% in Thursday’s premarket, trading around $945, even as memory-chip rivals announced massive shareholder return programs that Micron cannot yet match.
SK Hynix announced a plan to repurchase 40 trillion won ($29 billion) worth of stock over three months starting Thursday. Japan’s Kioxia just wrapped up its own roughly $5 billion buyback this month. Samsung Electronics is reportedly planning a shareholder return program worth more than 100 trillion won, with an announcement expected later in August.
Samsung stock jumped 9.5% in South Korea on Wednesday. SK Hynix’s American depositary receipts were up 3.7% in Thursday’s premarket. Micron gained a more modest 0.7%.
Micron investors wanting a similar return program will have to wait. The company is currently restricted from major buybacks or special dividends under the conditions attached to its 2024 U.S. Chips Act funding.
Those restrictions are scheduled to expire on December 9, 2026. Micron has signaled it plans to step up capital returns once that happens.
UBS analyst Timothy Arcuri estimates Micron will generate around $380 billion in cumulative free cash flow across 2027 and 2028, with the “vast majority” available for buybacks. The company carried a market cap of $1.06 trillion as of Wednesday’s close.
Technical Picture
With no company-specific news Thursday, the premarket gain appears to be driven by positioning around technical levels. Buyers have continued to step in after a recent pullback.
Micron is trading 67.6% above its 200-day simple moving average of $563.69 and 18.7% above its 100-day SMA of $795.78. However, it sits 1.9% below its 50-day SMA of $962.32, suggesting the stock is still consolidating.
The relative strength index stands at 51.90, pointing to neutral momentum. The stock is neither overbought nor oversold at current levels.
Traders are watching $1,012 as a potential resistance level, with support near $891.50, close to the 20-day moving average.
Analyst Outlook
The next major catalyst on the calendar is Micron’s estimated September 22 earnings report. Analysts expect earnings of $31.27 per share on revenue of $50.81 billion, compared with $3.03 per share and $11.31 billion in revenue a year earlier.
Wall Street Ratings
The stock carries a consensus Buy rating with an average price target of $1,537.50.
Citigroup maintained its Buy rating on August 7 but trimmed its target to $1,150. KeyBanc raised its target to $1,750 on July 14, keeping an Overweight rating. Cantor Fitzgerald is the most bullish, raising its target to $2,000 on June 29 while maintaining an Overweight rating.
Micron trades at a price-to-earnings ratio of 21.2. The stock scores 99.62 for momentum and 97.41 for quality on Benzinga Edge metrics, though its value score of 31.38 reflects the stock’s sharp rally over the past year.
Micron has risen more than 700% over the past 12 months.
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