Why Micron Technology's Stock Is Trading Lower Today

Micron Technology, Inc. MU shares are trading lower after Morgan Stanley downgraded the stock from Overweight to Equal-Weight and lowered its price target from $105 to $75.

Morgan Stanley analyst Joseph Moore noted 'While we have been impressed by the structural improvements at the company, and we see limited downside, we see the stock as effectively rangebound in an environment where DRAM prices start to decline.'

The analyst also noted 'August quarter results should still have upside, and that could persist into November. But the 35% increase in DRAM prices in the last two quarters, with further modest increase expected through year end, creates risks of a steeper decline next year, given the elevated state of customer inventories in some markets. '

Micron Technology designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit.

Micron's stock was trading about 7.4% lower at $69.50 per share on Thursday at the time of publication. The stock has a 52-week high of $96.96 and a 52-week low of $42.25.