Micron Technology, Inc. has recently witnessed a remarkable surge in its stock price, prompting significant sales of shares by two of its top executives. On January 22, Manish Bhatia, the executive vice president of global operations, sold 26,623 shares, netting over $10.4 million. The shares were sold at prices ranging from $388.41 to $395.90.
This sale comprised 14,640 restricted stock units that are set to vest between 2024 and 2025, along with 11,983 performance units awarded under Micron”s equity incentive plan. Despite this sale, Bhatia retains a substantial ownership stake, holding 323,486 shares valued at nearly $141 million based on the closing price of $435.28 on Wednesday.
Similarly, Michael Charles Ray, Micron”s senior vice president and chief legal officer, executed a sale of 10,468 shares on January 27, amounting to $5.02 million. His transactions were carried out under a Rule 10b5-1 trading plan at prices between $401.16 and $415.65. Following these sales, Ray now directly owns 74,675 shares.
Both executives may have missed out on even greater profits, as Micron”s stock has continued to climb following their sales. Since the beginning of the year, shares have surged by over 30%, reaching an all-time intraday high of $444.71 on January 30. The stock first broke the $400 barrier on January 23, just a day after Bhatia”s sale.
This bullish trend was further supported by strong earnings reports from several semiconductor companies, including Seagate Technology, which reported positive results that buoyed the sector. Guidance from Texas Instruments, ASML Holding, and SK Hynix has also indicated a recovery in demand driven by AI technologies.
Looking ahead, Micron anticipates that a significant shortage of memory chips will persist, which could sustain elevated prices and profit margins for both Micron and its competitors. Their recent earnings report underscored a positive outlook, positioning Micron as a critical player in the high-bandwidth memory market for AI servers.
In line with expectations for continued growth, analysts have raised their price targets for Micron. Mizuho set a target of $480, while HSBC increased its projection to $500, citing rapid increases in DRAM prices. Alongside, TD Cowen adjusted its target to $450 due to worsening memory shortages. Stifel also boosted its estimate to $360, noting that growth in AI cloud infrastructure is consuming DRAM supply.
Furthermore, Micron is poised to announce a significant investment in expanding its memory chip manufacturing capabilities in Singapore, specifically focusing on NAND flash memory production. As the semiconductor market evolves, Micron”s strategic moves could solidify its position among the leading suppliers in the industry.
