Micron Technology Inc. (NASDAQ:MU) CEO and President, Sanjay Mehrotra, has sold a substantial amount of company stock, as recent filings with the Securities and Exchange Commission reveal. On June 11 and 12, Mehrotra executed multiple transactions involving both the acquisition and disposal of Micron shares.
The transactions included the sale of 10,000 shares at prices ranging from $132.76 to $140.00, totaling approximately $5,141,955. The sales were conducted at weighted average prices, with individual transactions occurring within specified price ranges. For instance, shares sold on June 11 fetched prices between $132.415 and $133.38, while on June 12, shares were sold at prices ranging from $140.00 to $140.05.
In addition to the sales, Mehrotra also acquired 37,000 shares of Micron stock at a set price of $28.20 per share, amounting to a total of $1,043,400. These acquisitions are part of the company's non-derivative securities transactions.
The CEO's trading plan, which was put into effect automatically pursuant to a Rule 10b5-1 trading plan adopted on May 15, 2023, led to these transactions. Such plans allow company insiders to establish pre-planned transactions to be executed at a later date, which can provide an affirmative defense against accusations of trading on insider information.
Following these transactions, Mehrotra's direct holdings in Micron stock have changed, though the exact post-transaction ownership was not disclosed in the summary of the SEC filing provided. However, it is known that Mehrotra has indirect ownership through Grantor Retained Annuity Trusts (GRATs) for the benefit of his family, with 371,629 shares held in this manner.
Investors and market watchers often pay close attention to insider trading patterns as they can provide insights into executives' perspectives on their company's future prospects. As the leader of one of the major players in the semiconductor industry, Mehrotra's trading activities are particularly noteworthy.
Micron Technology Inc., headquartered in Boise, Idaho, is a global corporation known for its semiconductor devices, particularly its memory and storage solutions which play a critical role in the advancement of computing technology.
This recent filing provides a detailed look into the trading activities of one of Micron's top executives, offering investors a glimpse into the actions that those closest to the company are taking with respect to their stock holdings.
In other recent news, Micron Technology has been a focal point of several significant developments. UBS has raised its price target for Micron shares to $155, maintaining a Buy rating based on upward trending pricing for DRAM and NAND memory. Mizuho also maintained a Buy rating on Micron, increasing the price target to $155 and projecting market share growth in the second half of 2024. In contrast, Morgan Stanley (NYSE:MS) upgraded Micron Technology stock from an Underweight rating to an Equalweight, raising the price target to $130.
The New York Independent Grid Operator (NYISO) expressed concerns about potential energy supply shortfalls, which could impact energy-intensive projects like the Micron NY Semiconductor plant. In the legal sphere, Micron was ordered to pay $445 million to Netlist (OTC:NLST) following a patent dispute, a figure that could potentially triple due to the finding of willful infringement.
On the workforce front, Micron, in collaboration with GlobalFoundries (NASDAQ:GFS) and the U.S. National Science Foundation, initiated a program to diversify the semiconductor workforce in the United States. These are the recent developments surrounding Micron Technology.
InvestingPro Insights
Micron Technology Inc. (NASDAQ:MU) has been navigating a complex market environment, and recent insider trading activity by CEO Sanjay Mehrotra has caught the attention of investors. To provide additional context to these transactions, here are some key metrics and insights from InvestingPro.
InvestingPro Data:
- Market Cap (Adjusted): $158.36B USD, reflecting the company's significant presence in the semiconductor industry.
- P/E Ratio (Adjusted) last twelve months as of Q2 2024: -44.16, indicating that the market has priced the stock with expectations of future growth despite recent losses.
- 1 Year Price Total Return as of mid-2024: 108.6%, showcasing a substantial appreciation in the company's stock price over the past year.
InvestingPro Tips:
1. Micron has raised its dividend for 3 consecutive years, which may appeal to income-focused investors considering the company's commitment to returning value to shareholders.
2. Analysts anticipate sales growth in the current year, suggesting optimism about the company's revenue prospects despite the challenges faced in the semiconductor sector.
These metrics and tips underscore the dynamic nature of Micron's financial performance and the strategic moves by its leadership. For investors seeking deeper analysis, there are 17 additional InvestingPro Tips available, offering comprehensive guidance on Micron's financial health and market position. Access these exclusive insights at InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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