CEO Sanjay Mehrotra sold 40,000 shares at ~$906-$966 in late July. A month later he announced $22B in customer deposits with demand exceeding supply by 50%.
Micron Technology (MU) CEO Sanjay Mehrotra sold $37 million in shares in late July, about a month before he announced that customers have placed $22 billion in cash deposits on take-or-pay contracts and still want 50% more memory than the company can supply.
Mehrotra disposed of 40,000 shares on July 24 at prices between $906.48 and $965.85, executed across 40 separate lots, according to the insider filing. The stock closed at $974.33 on August 20, meaning the sale captured less than current levels. Shares are up 241% year to date and 732% over one year.
Two other named officers sold in the same window. Chief Accounting Officer Scott Allen sold 879 shares at $1,000 exactly on July 23, plus two lots at $983.12 on July 15. Chief People Officer April Arnzen sold across 18 lots on July 1 at prices between $1,077.05 and $1,095.88, including a single block of 10,497 shares at $1,079.99.
The filings data does not confirm whether Mehrotra's July 24 sale was conducted under a Rule 10b5-1 trading plan. The response returned 8-K records but no Form 4 with plan footnote language. Investors should read the Form 4 footnote directly before drawing conclusions on intent.
On Wednesday night at the Micron fab in Boise, Idaho, Mehrotra told CNBC's Jim Cramer that customers have deposited $22 billion under take-or-pay agreements and still request capacity Micron cannot commit. Cramer called the Boise site "exhibit A" that America still has manufacturing.
On the fiscal Q3 earnings call, CFO Mark Murphy clarified the structure. "It's not a prepayment. It's a separate commitment by the customers and a reflection of the fact that we have a binding agreement and these are take or pay agreements," Murphy said. He added that roughly $18 billion of the $22 billion is cash deposits, with the balance in letters of credit, and about $10 billion of deposits are expected to land in fiscal Q4.
Fourteen of the 16 signed agreements represent roughly $100 billion in cumulative revenue at minimum prices over the term. Floor pricing supports gross margins "well above our peak quarterly margins in any past cycle," Murphy said.
Fiscal Q3 revenue hit $41.46 billion, a 17.60% beat and 345.72% year-over-year growth, with non-GAAP EPS of $25.11. Q4 guidance calls for $50.0 billion in revenue and $31.00 EPS.
The next test is December 9, the second anniversary of the CHIPS agreements, when Micron intends to increase its capital return.
Micron's Alpha Score sits at 72 out of 100, in the Moderate range. The stock page tracks the full profile.
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