Micron Technology Inc. (MU) shares rose 1.4% in premarket trading Wednesday, after the memory-chip maker disclosed that its board authorized an additional $1 billion for share repurchases.
The disclosure appears meant to show shareholders that Micron is more generous with cash than one of its key rivals, an analyst said.
“This is a clear statement from Micron that they are committed to returning capital to shareholders,” said Rosenblatt Securities analyst Hans Mosesmann in a note to clients. “We believe this is a direct response to Samsung’s (005930.SE) recent announcement that it will not be issuing any special dividends.”
Micron’s board had previously authorized $1 billion in share repurchases in August 2023.
“Micron’s commitment to returning value to shareholders is unwavering,” said Micron Chief Financial Officer Mark Murphy in a statement. “We are confident in our long-term growth prospects and believe that returning capital to shareholders through share repurchases is an effective way to enhance shareholder value.”
Micron shares have risen 23.7% over the past 12 months, while shares of Samsung have fallen 1.8%.
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