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


Micron Technology Inc. (NASDAQ:MU) saw an upside of 5.75% to close Monday at $61.82 after adding $3.36 on the day. The 5-day average trading volume is 13,406,180 shares of the company’s common stock. It has gained $61.91 in the past week and touched a new high 2 times within the past 5 days. An average of 16,036,354 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 15,863,466.

MU’s 1-month performance is 21.98% or $11.62 on its low of $48.52 reached on 12/27/22. The company’s shares have touched a 52-week low of $48.43 and high of $96.50, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, MU has achieved 23.69% or $11.84 and has reached a new high 8 times. However, the current price is down -35.94% from the 52-week high price.

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Insider Transactions

MU stock investors last saw insider trading activity on Aug 16.Bokan Michael W (SVP, Worldwide Sales) most recently sold 16,600 shares at $63.82 per share on Aug 16. This transaction cost the insider $1,059,450. SVP, Chief People Officer, ARNZEN APRIL S, sold 5,600 shares at a price of $76.00 on Mar 24. Then, on Feb 16, SVP, General Counsel&Secretary Beard Robert P sold 266 shares at a price of $96.17 per share. This transaction amounted to $25,581.

Valuation Metrics

MU stock has a beta of 1.31. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.39 while the price-to-book (PB) in the most recent quarter is 1.37, with the price to cash flow ratio at 141.38.

Micron Technology Inc.’s quick ratio for the period ended November 29 was 2.20, with the current ratio over the same period at 3.50. As well, the company’s long term debt to equity for the quarter ending November 29 was 0.20, while the total debt to equity was 0.21. In terms of profitability, the gross margin trailing 12 months is 41.30%. The firm’s gross profit as reported stood at $13.9 billion against revenue of $30.76 billion.

Earnings Surprise

For the quarterly period ending November 29 this year, Micron Technology Inc.’s cash and short-term investments amounted to $1.01 billion against total debt of $10.95 billion. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 1282.56% to -$195.0 million, while revenue of $1.22 billion was 724.1% off the previous quarter. Analysts expected MU to announce -$0.01 per share in earnings in its latest quarter, but it posted -$0.04, representing a -300.00% surprise. EBITDA for the quarter stood at more than $1.71 billion. MU stock balance sheet for the quarter ending November 29 shows that total liabilities totaled 18.57 billion, with total debt at $10.95 billion. Shareholders hold equity totaling $1.09 billion.

Let’s look briefly at Micron Technology Inc. (MU) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 79.77% to suggest the stock is trending Overbought, with historical volatility in this time period at 33.34%.

The stock’s 5-day moving average is $58.00, reflecting a +8.59% or $4.89 change from its current price. MU is currently trading +20.77% above its 20-day SMA, +8.44% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +7.53% and SMA200 by-17.14%.

Stochastic %K and %D was 91.38% and 85.03% and the average true range (ATR) pointed at 2.08. The RSI (14) points at 71.82%, while the 14-day stochastic is at 99.27% with the period’s ATR at 2.06. The stock’s 9-day MACD Oscillator is pointing at 1.16 and 2.32 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Micron Technology Inc. (NASDAQ: MU), Argus downgraded it to a Hold rating. They previously had a Buy rating on the stock. Analysts offering their rating for MU stock have a consensus rating for the stock as Overweight. Currently, 2 brokerage advisors rate MU as a “sell,”, while 9 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 5 rates the stock as overweight while 22 have offered a “buy” rating.

What is MU’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $45.00 and a high of $100.00, with their median price target at $65.00. Looking at these predictions, the average price target given by analysts is for Micron Technology Inc. (MU) stock is $64.41.


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