Micron CEO Trims Stake Again, Selling 40,000 Shares to Cash Out Nearly $40 Million: Has the Stock Peaked?
TradingKey - Micron CEO Stuns with Another 40,000-Share Sale, Cashing Out $40 Million: Should Retail Investors Flee?
On August 26 Eastern Time, filings disclosed by the U.S. Securities and Exchange Commission (SEC) showed that Sanjay Mehrotra, President and CEO of Micron Technology (MU), sold another 40,000 shares of common stock last Friday (August 21), cashing out nearly $40 million.
Under a Rule 10b5-1 trading plan established earlier this year, the Micron CEO has executed five major share sales, selling a total of roughly 200,000 shares and cashing out over $180 million, as detailed below:
Transaction Date | Shares Sold | Average Execution Price per Share ($) | Total Proceeds ($) |
May 29 | 40,000 | Approx. 536 | Approx. 21.45 million |
June 2 | 40,000 | Approx. 961 | Approx. 38.45 million |
June 26 | 40,000 | Approx. 1,158 | Approx. 46.33 million |
July 24 | 40,000 | Approx. 932 | Approx. 37.29 million |
August 21 | 40,000 | Approx. 968 | Approx. 38.76 million |
It can be seen that the Micron CEO's preset plan keeps each sale fixed at around 40,000 shares. Following multiple rounds of divestment, his direct holdings of Micron common stock have decreased to approximately 264,000–305,000 shares, while his indirect holdings through family trusts and other entities stand at around 607,000 shares. Moreover, the selling prices spanned a wide range from $500 to $1,200 per share, making it impossible to conclude directly that the stock price has peaked. From a technical analysis perspective, however, signs of a peak are indeed present.
On August 25, Micron's stock price surged to around $1,250, hitting a record high and pushing its maximum gain for the year to 330%. Since then, the stock has experienced a continuous pullback, falling below several major key levels such as $1,000 and $800, before dropping to a low of $740 on July 29, marking the bottom of this cycle. During the pullback, the stock managed a rebound, but only reached a peak of $1,000—well below its previous high—forming a classic descending channel and signaling a distinct bearish outlook.
Micron stock price chart, Source: TradingView
Going forward, if Micron's stock price fails to rebound above the $1,000 threshold to reverse the downtrend into consolidation, and continues downward to break below $740, it will further confirm $1,250 as the stock price top.
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