Micron Technology, Inc. (MU): When The Market Gets It Wrong

The stock of Micron Technology, Inc. (NASDAQ:MU) has been Upgraded to Equal-Weight from Underweight by Morgan Stanley in its latest research note that was published on July 30. MU was given a price target of $48 by Morgan Stanley, with other Wall Street analysts also giving their reports regarding the stock. Deutsche Bank analysts again handed out a Buy rating to MU stock but they lifted target price for the shares in a flash note to investors on July 24. The price target has been raised from $45 to $55. Analysts at Goldman issued an upgrade fromNeutral to Buy for the stock, in a research note that dated back to July 22.

Micron’s stock is covered by 33 analysts, with 5 of them rating the stock as Buy. It has been deemed to have strong buy by 13 of the analysts, 12 of them have rated it as a Hold while 2 of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only 6 analysts. 14 of them rated it as strong buy with 12 of them recommended investors to Hold on to the stock. Meanwhile, 2 analyst(s) rated it as a sell. The above data shows that MU has an average analyst rating of 2.45.

Micron Technology, Inc., which has current market capitalization of above $50 Billion, published its last quarter earnings on May 31, 2019. The company was able to amass $4788 million in revenue. This figure is $102.05 million more than what analysts had expected which was $4685.95 million. During the first quarter of the year, Micron also recorded $1.05 earnings per share (EPS) which is $0.27 above the $0.78 estimated by Thomson Reuter’s analyst, leading to a surprise factor of 33.89%.

MU surged by $2.95 during the normal trading session on Tuesday and reaching a high of $45.08 during the day while it closed the day at $44.17. The Micron stock had a high trading volume of 33.09 million shares on that day, which is high compared to the average daily volume of 29.87M shares. MU has also gained 3.64% of its value over the past 7 days. However, the stock has surged by 14.70% in the 3 months of the year. Over the past six months meanwhile, it has gained 9.33% while it has added 39.21% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -9.3% from its 3 months high price. However, taking another look at MU will indicate that it is trading +37.43% away from its 90-day low. Looking at the bigger picture, the Micron Technology, Inc. stock has dropped by -17.72% from its 52-week high while it has surged by +55.58% from its 52-week low price.

On August 01, 2019 Bokan Michael W, SVP, WORLDWIDE SALES sold 427 shares of the company. The average price for that transaction was $45.64 per share, which meant that Bokan Michael W earned $19488.28 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with Counsel & Corporate Secretary, Poppen Joel L selling 654 shares of this stock on August 01, 2019. The average selling price for the stock was $45.64 per share, with the sold stock accruing $29848.56. Following this transaction, the Counsel & Corporate Secretary Poppen Joel L now holds 76992 shares of the company, which is worth around $3243673.

Micron has around 5 Trillion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $5 Trillion. The Micron stock is bringing in revenue of over 12 months, which is roughly 2 Trillion. Despite all that, Micron Technology, Inc. is seeing things declining very much as their y-o-y quarterly revenue dropped by -61.30%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 72.64%. This figure is better than the company’s 20-day Raw Stochastic average which currently stands at 43.37%. Over the past 20 days, Micron’s Stochastic %K stood at 23.83% while its Stochastic %D was revealed to be 19.03%.