Buying Micron Technology Inc. (MU) Stock Is A Smart Move Today?

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KOSK Stock
KOSK Stock

Micron Technology Inc. (NASDAQ:MU) finished Thursday with a subtraction of -$0.44 to close at $49.66, a downside of -0.88 percent. An average of 23,192,180 shares of common stock have been traded in the last five days. There was a fall of -$3.03 in the past week, and it reached a new high 13 times over the past 12 months. The last 20 days have seen an average of 17,150,061 shares traded, while the 50-day average volume stands at 15,602,208.

MU stock has decreased by -14.17% in the last month. The company shares reached their 1-month lowest point of $49.35 on 09/22/22. With the stock rallying to its 52-week high on 01/05/22, shares of the company touched a low of $49.72 and a high of $98.45 in 52 weeks. It has reached a new high 3 times so far this year and lost -46.69% or -$43.49 in price. In spite of this, the price is down -49.56% from the 52-week high.


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Insider Transactions

38 days have passed since Micron Technology Inc. (MU) last reported insider trading activity. Bokan Michael W, who is SVP, Worldwide Sales, most recently acquired $16,600 shares at $63.82 per share on Aug 16. In this transaction, the insider spent $1,059,450. SVP, Chief People Officer, ARNZEN APRIL S, disposed of 5,600 shares at a price of $76.00 on Mar 24. The insider now owns more than $425,600 worth of shares. Prior to that, SVP, General Counsel&Secretary Beard Robert P went on to Sale 266 shares at $96.17 each on Feb 16. An amount of $25,581 was transacted.

Valuation Metrics

Micron Technology Inc. (MU) has a trailing price-to-earnings (P/E) ratio of 5.66. The stock’s beta is 1.30. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.69, the price-to-book (PB) ratio at 1.12, and the price-to-cash flow ratio at 12.18.

The company has a payout ratio of 3.40%. The company’s most recent quarterly dividend payment was $0.1150 a share, representing a up of 15.0% from $0.10 last year. Its latest increase dividend $0.0150 reported on Thursday June 30 2022.

Financial Health

The quick ratio of Micron Technology Inc. for the three months ended May 30 was 2.40, and the current ratio was 3.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.14 and a total debt to equity ratio of 0.14 for the quarter ending May 30. Micron Technology Inc.’s EBITDA margin for the year ending May 30 is 47.11%, while its operating margin for the same period stands at 34.10%. Its gross profit as reported stood at $10.42 billion compared to revenue of $27.7 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Micron Technology Inc.’s return on assets was 15.90%.

Earnings Surprise

For the three-month period that ended May 30, Micron Technology Inc. had $1.07 billion in cash and short-term investments compared to $6.86 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.63 billion in the quarter, while revenues of $2.26 billion were grew 33.93%. The analyst consensus anticipated Micron Technology Inc.’s latest quarter earnings to come in at $2.43 per share, but it turned out to be $2.59, a 6.60% surprise. For the quarter, EBITDA amounted to $4.83 billion. Shareholders own equity worth $1.1 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Micron Technology Inc. (MU) price momentum. RSI 9-day as of the close on 22 September was 22.98%, suggesting the stock is oversold, with historical volatility in this time frame at 35.01%.

As of today, MU’s price is $51.10 -5.75% or -$3.03 from its 5-day moving average. MU is currently trading -14.83% lower than its 20-day SMA and -27.17% lower than its 100-day SMA. However, the stock’s current price level is -15.63% below the SMA50 and -39.77% below the SMA200.

The stochastic %K and %D were 3.36% and 6.07%, respectively, and the average true range (ATR) was 1.93. With the 14-day stochastic at 3.33% and the average true range at 2.02, the RSI (14) stands at 29.34%. The stock has reached -2.35 on the 9-day MACD Oscillator while the 14-day reading was at -3.55.

Analyst Ratings

Stifel launched coverage on Micron Technology Inc. (NASDAQ: MU) in its analyst report released on September 21, 2022. The firm assigned the stock a Hold rating.

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