tiprankstipranks
Micron Initiates Quarterly Dividend; Shares Rally 1.2% After-Hours
Market News

Micron Initiates Quarterly Dividend; Shares Rally 1.2% After-Hours

Micron Technology (MU) announced that its board of directors have approved a quarterly dividend of $0.10 per share. Shares of the semiconductor company rallied 1.2% to close at $78.59 in the extended trading session on Monday.

Don't Miss our Black Friday Offers:

The initial dividend will be paid on October 18, 2021, to shareholders of record as of October 1, 2021.

Notably, the company also has a share repurchase plan of up to $10 billion in place. The repurchases can be made through open-market purchases, block trades, privately negotiated transactions, derivative transactions, and/or pursuant to Rule 10b5-1 trading plans. (See Micron stock chart on TipRanks)

The President and CEO of Micron Technology, Sanjay Mehrotra, said, “Initiating a common stock dividend reflects our confidence in Micron’s future and our commitment to creating compelling value for shareholders.”

On June 30, Micron reported Fiscal Year 2021 third-quarter results, which witnessed substantial improvement from the prior-year quarter and topped consensus estimates.

On August 2, Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating on the stock. Mosesmann is of the opinion that Micron’s memory/storage content/bandwidth is accelerating due to AI-related workloads that are not keeping up with the computing engines.

He said, “Micron is changing its share repurchase tactics to be cross-cyclical than yearly, to opportunistically be aggressive when shares are below their intrinsic value; as management believes is the case for the current August quarter.”

Based on 17 Buys and 5 Holds, the stock has a Strong Buy consensus. The average Micron price target of $116 implies 49.4% upside potential. Shares have gained 54.1% over the past year.

Related News:
Scotts Miracle-Gro Rewards Shareholders with 6.5% Dividend Hike; Street Says Buy
W.P. Carey Q2 Results Top Estimates; Street Says Buy
FDA Approves Johnson & Johnson IV Drug

Go Ad-Free with Our App