Micron Technology, Inc. (NASDAQ: MU) is having an overwhelmingly strong start to the trading session this morning and for good reason. Late in the after-hours the company announced a share buyback program that led to excitement among investors. Today, we’ll talk about:
- The share buyback program;
- what we’re seeing from the stock;
- and what we’ll be watching for ahead.
MU Announces Stock Buyback Program
As mentioned above, Micron Technology is having a great time in the pre-market hours this morning after the company announced a share buyback program. In a press release issued early this morning, the company announced that its Board of Directors has authorized the discretionary repurchase of up to #10 billion of its outstanding common stock. In the release, MU said that the plan is in conjunction with their goal of returning at least 50% of free cash flow to stockholders beginning in fiscal 2019.
In the release, the company said that under this program, it may purchase shares on a discretionary basis, through open market purchases, block trades, privately negotiated transactions and/or derivative transactions. In a statement, Sanjay Mehrotra, president and CEO at MU, had the following to offer:
The data-driven economy will transform nearly every industry, and drive secular growth in demand for memory and storage. Micron is exceptionally well positioned to capitalize on these opportunities and deliver strong business performance and robust free cash flow… Our business results have dramatically strengthened Micron’s balance sheet and this stock buyback program emphasizes our ongoing commitment to enhancing shareholder value.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news surrounding Micron Technology proved to be overwhelmingly positive. After all, buy backs not only are a great sign of stability and confidence among business management, they’re an immediate return of shareholder value. So, it’s no surprise that the stock is making a run for the top in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:22), MU is trading at $59.21 per share after a gain of $3.73 per share or 6.72% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MU. In particular, we’re interested in following the story surrounding the share buy back program as well as the company’s continued growth as a leader in its space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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