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Micron (MU) Buyback a Positive Signal to Investors, Needham & Company Says

October 27, 2014 12:03 PM EDT
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Price: $117.89 -1.14%

Rating Summary:
    45 Buy, 7 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Needham & Company analyst Rajvindra Gill reiterated his Strong Buy rating and $60 price target on Micron Technology (NASDAQ: MU) after the company initiates its first stock repurchase program. He sees is as a positive signal to investors.

Gill commented, "Micron, this morning, announced that its Board of Directors has authorized the discretionary repurchase of $1.0Bn of its outstanding common stock. We believe that Micron is following in the footsteps of SanDisk who announced its first dividend and an increased share repurchase program in August 2013. Having generated significant operating and free cash flow the last several quarters and favorable industry conditions, we see more than enough room in Micron's model to support the repurchase and possibly accelerate it. While a $1.0Bn repurchase agreement has a negligible impact to the model ($0.08-$0.11), we are encouraged by the signal management is sending to investors and believe this will be the first step in a multi-year buyback program"

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $31.06 yesterday.



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Needham & Company, Dividend, Stock Buyback