Micron resumes buybacks; shares gain By Investing.com

Micron Technology (NASDAQ:) shares rose Wednesday after the company said it would resume its share repurchase program.

The company’s stock is currently up more than 3%, trading around the $91.80 mark. For the year-to-date, MU shares have gained over 9%, although they have fallen by more than 30% in the last month.

In May 2018, the company announced that its Board of Directors had authorized a stock repurchase program, with Micron determining that it was the best use of its available cash.

However, in December 2022, it disclosed the temporary suspension of the repurchase program citing the industry downturn as the reason for the pause.

However, the company said on Wednesday that in light of the improved market conditions, it has decided to resume the repurchases, adding that it will help offset dilution from employee stock purchase programs.

“The company maintains its commitment to further strengthening its balance sheet and sustaining its investment grade credit rating,” said the company in a filing.

According to a note from KeyBanc analysts on Tuesday, Micron’s management lowered FQ1 guidance at a recent investor event.

“Presenting at KBCM’s Technology Leadership Forum, management provided an update and trimmed its outlook for F1Q (November) to flat bit shipments q/q from prior expectations of modest sequential growth,” wrote KeyBanc.

“MU noted its customers in PC/smartphones had prebuilt inventory, while end-demand in auto, industrial, and consumer end markets was weak. As a result, Micron noted the pricing environment was weaker than expected and as a result has walked away from less favorable deals,” they added.

The company is said to have indicated that yields are trending well, and “reaffirmed expectations that an accelerated ramp will impact cost downs, which are expected to be flat to up this year and be muted in 2025. MU also reiterated expectations its HBM share will achieve its DRAM share in FY25,” concluded KeyBanc.