NEW YORK (TheStreet) -- Micron Technology (MU) shares are up 0.84% to $32.57 in early market trading on Tuesday after the semiconductor manufacturer announced that CFO and VP of Finance Ronald C. Foster will be retiring from the company in 2015, an announcement that comes one day after a major stake holder revealed a steep reduction in the number of shares it holds in the company.
Yesterday, the activist investor David Einhorn-founded hedge fund Greenlight Capital revealed that it had reduced its stake in Micron to 30.5 million shares owned from 40.3 million shares owned, which led the stock to decline as much as 2% in trading.
Foster has been with Micron as its CFO since he joined the company in 2008 and will officially retire on February 28.
TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 48.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MU's share price has jumped by 74.10%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 45.85% is the gross profit margin for MICRON TECHNOLOGY INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.20% is above that of the industry average.
- You can view the full analysis from the report here: MU Ratings Report