Micron Technology Inc. (NASDAQ:MU) CEO and President Sanjay Mehrotra has sold a significant portion of his stock in the company, transactions that were completed through a pre-arranged trading plan. According to the latest regulatory filings, Mehrotra sold shares worth over $6.7 million.
The sales occurred in multiple transactions at varying prices. On April 2, 2024, a total of 6,112 shares were sold at an average price of $122.01, with individual sale prices ranging from $121.49 to $122.44. Additionally, on the same day, 888 shares were sold at an average price of $122.68, within a price range of $122.50 to $122.92. Later on April 4, Mehrotra sold 45,000 shares at a price of $130 per share. The combined sales from these transactions amounted to a total of $6,704,664.
These sales were executed under a Rule 10b5-1 trading plan, which Mehrotra had adopted on May 15, 2023. Such plans allow company insiders to set up a predetermined schedule for buying and selling shares to avoid accusations of insider trading.
In addition to the sales, the filings also reported that Mehrotra acquired shares through the exercise of options. On April 2, he exercised options for 7,000 shares, and on April 4, for another 30,000 shares, both at a price of $28.20 per share. The total value for these option exercises amounted to $1,043,400.
Following these transactions, Mehrotra's direct holdings in Micron Technology have been adjusted, though the filings also note indirect ownership through a grantor retained annuity trust, which benefits him and his family.
Investors often keep a close eye on insider transactions as they can provide insights into executives' perspectives on the company's future performance. However, trades under 10b5-1 plans are typically less indicative of personal sentiment, given their predetermined nature.
InvestingPro Insights
Micron Technology Inc. (NASDAQ:MU) has experienced a significant transformation in its market performance, with the CEO's recent stock transactions drawing attention to the company's financial health and future outlook. The InvestingPro data reveals a complex picture:
- The market cap stands at a robust $137.41 billion, indicating a strong market presence.
- Despite a challenging period with revenue declining by 20.6% over the last twelve months as of Q2 2024, the company has seen a quarterly revenue growth spurt of 57.7% in Q2 2024.
- The company's recent price performance has been remarkable, with a one-month price total return of 29.7% and a staggering three-month return of 50.18%, reflecting a bullish trend in investor sentiment.
These metrics, particularly the revenue growth and price performance, may offer some context to the CEO's stock sale. It's notable that while the company has faced headwinds, there are signs of a turnaround that could be influencing executive decisions.
InvestingPro Tips suggest a nuanced view of Micron's position:
1. Analysts have revised their earnings upwards for the upcoming period, indicating potential optimism about the company's profitability.
2. The company has been identified as a prominent player in the Semiconductors & Semiconductor Equipment industry, which could mean its movements are closely watched as an industry bellwether.
For investors seeking a deeper dive into Micron Technology's prospects, there are 19 additional InvestingPro Tips available at https://www.investing.com/pro/MU. These tips can provide further insight into the company's performance and potential investment opportunities. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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