Legendary Value Investor Seth Klarman is Selling These 5 Stocks in 2023

3. Micron Technology, Inc. (NASDAQ:MU)

Percentage of Stake Sold: 100%

Number of Hedge Fund Holders: 74

Micron Technology, Inc. (NASDAQ:MU) specializes in the design, development, manufacturing, and sale of memory and storage products. The company is divided into four segments – Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. In Q4 2022, Seth Klarman owned 3.28 million shares of Micron Technology, Inc. (NASDAQ:MU) worth $164.2 million. However, in Q1 2023, the investor discarded the entirety of his stake in the company. 

On May 5, Citi analyst Christopher Danely maintained a Buy rating on Micron Technology, Inc. (NASDAQ:MU) with a price target of $75. Following discussions with management, the analyst believes that despite the DRAM industry experiencing a prolonged period of low performance, the corrective measures implemented by Samsung, Hynix, and Micron should lead to a recovery starting in the second half of 2023. However, the analyst noted that visibility into the market remains limited, and Micron Technology, Inc. (NASDAQ:MU) continues to adopt a cautious approach regarding spending and utilization rates.

According to Insider Monkey’s fourth quarter database, 74 hedge funds were bullish on Micron Technology, Inc. (NASDAQ:MU), and Andreas Halvorsen’s Viking Global held the biggest stake in the company. 

Here is what Claret Asset Management has to say about Micron Technology, Inc. (NASDAQ:MU) in its Q3 2022 investor letter:

“Inflation is still higher than interest rates… not an incentive to save for most people. Either inflation must come down or interest rates have to go up further. Or both. And probably both. Now that they are taking the punch bowl away and the party’s over, what happens next? For whatever reason, the stock market seems to always precede the economic reality: Micron reached a high of $98.45 on January 5th, 2022 and is trading at $50.00 today.”