Micron Insiders Sell But Investors Should Buy, Buy, Buy
Micron (NASDAQ: MU) insiders sold in Q2 2025 and continued the trend in Q3, but investors shouldn’t. The insider selling coincides with the onset of a robust rebound in share prices, and share-based compensation is in play. Sellers include numerous directors, the CEO, and several EVPs, all of whom are eligible. The takeaway is that these executives are taking some money off the table but are raising no red flags by doing so.
Although the four-quarter high in activity is alarming, insiders hold a slim 0.3% stake in the stock, which provides little to no headwind. Other factors, including results, outlook, institutional buying, and analyst recommendations, offset their activity.
The stock price outlook centers on the latest results and guidance update. They affirm that the AI boom is spilling over into NVIDIA-adjacent markets due to the accelerating build-out of AI infrastructure. Results included top- and bottom-line outperformance, as well as accelerating growth driven by the data center and HBM markets. HBM memory, specifically that provided by Micron, is critical to the development and applications of advanced AI.
The guidance is the driving force for Micron’s stock market in July. The company’s guidance echoes that of NVIDIA, including significant strength in addition to the FQ3 strength and a high probability of being cautious. Micron’s business is being driven by demand for NVIDIA (NASDAQ: NVDA) GPUs and Advanced Micro Devices (NASDAQ: AMD), which is seen as on the cusp of a significant inflection.
Its GPUs are generally viewed as better for advanced AI due to their favorable power efficiency, superior memory capacity, and total cost of operations—good news for memory supplier Micron. Additionally, normalization in legacy markets is also supporting the outlook, with the last holdouts expected to revert to growth by the end of the calendar year.
Institutions Drive Micron Rebound, Analysts Lead Market
Micron’s stock price rebound began in early April, shortly after the release of its FQ2 results, driven in large part by the institutions. The institutions took advantage of the tariff-induced sale and netted nearly two shares for each one sold since then.
They own approximately 80% of the stock, providing a solid support base with their numbers and a tailwind for price action through their activity. The tailwind is being amplified by analysts who are lifting their ratings and price targets in the wake of the FQ3 release.
MarketBeat tracked 19 revisions from 24 analysts in June and early July. All were increases, and 100% included a price target revision. The consensus for the new targets is roughly $157, a 25% increase from the $120 level, and the revision trend is likely to continue positively this year.
Wells Fargo says details from the report, including the fact that a single customer accounted for 16% of year-to-date revenue (above their forecast), suggest the upcoming report will be significantly above their initial targets, topping them by more than 50%.
Micron Uptrend Has Room to Run in 2025
Micron’s upswing has been robust but is likely not over. The market is pulling back in early July, but the move aligns with an uptrending market and remains above critical support targets. Those are near the $115 level and the top of a trading range established in 2024.
Among the indicators of strength is the MACD. It is convergent with the 2025 highs, showing an extreme peak and the strongest momentum on record. The market for MU stock can pull back in this scenario, but is far more likely to extend the rally and set a new all-time high.
Assuming the market stays above the critical support level, it should be able to regroup quickly and extend the rally, potentially retesting the all-time highs before the year’s end.
