The stock of Micron Technology Inc. (NASDAQ:MU) increased by $3.91 on Monday to finish at $68.28, up 6.07 percent. The last five days have seen an average of 14,272,601 shares of common stock traded. 19 times new highs were reached in the current year, with a gain of $18.30. The average number of shares traded over the last 20 days was 13,527,900, while the average volume over the last 50 days totaled 15,477,910.
MU stock appreciated 6.55% since last month. On 07/17/23, the company’s shares reached a one-month low of $63.34. The stock touched a high of $74.77 on 05/30/23, after rallying from a low of $48.43 in 52 weeks. The price of MU stock has risen by 36.61% or $18.30 this year, reaching a new high 19 times. Still, the stock price is down -8.68% from the 52-week high.
Insider Transactions
MU stock investors should be aware that Micron Technology Inc. (MU) stock had its last reported insider trading activity 11 days ago on Aug 04. On Aug 04, EVP, Chief Business Officer Sadana Sumit sold 42,667 shares at $70.05 each. This transaction resulted in the insider making $2,988,823. On Aug 01, Deboer Scott J sold 20,000 shares at a price of US$70.67. After the transaction, the insider now owns 168,340 shares. SVP, Worldwide Sales Bokan Michael W had earlier sold 45,456 shares on Jul 27 for $70.87 a share. The transaction was completed for $3,221,467.
Valuation Metrics
Beta for the stock is 1.37. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.18, the price-to-book (PB) ratio of 1.65.
Company paid $0.1150 per share in dividends, remained unchanged from $0.1150 last year. A $0.0150 dividend increase was reported on Thursday June 30 2022.
Financial Health
For the three months ended May 30, Micron Technology Inc.’s quick ratio was 2.60, while its current ratio was 4.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending May 30 is 0.29, and the total debt to equity ratio is 0.29. As far as profitability goes, gross margin for the trailing twelve months is 9.00% percent. Micron Technology Inc.’s EBITDA margin for the year ended May 30 was 54.90%, whereas its operating margin stood at -15.10% for the same period. Based on annual data, it had gross profit of $13.9 billion and revenue of $30.76 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. MU’s return on assets (ROA) during the last 12 months has been -4.40%. There was a 15.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -6.10%.
Earnings Surprise
According to Micron Technology Inc.’s quarterly financial report for the quarter that ended May 30, it had $12.99 billion in total debt versus $1.05 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $3.75 billion, while revenues fell by -130.33% to $3.69 billion. It was predicted that Micron Technology Inc.’s quarterly earnings would be -$1.43, but it ended up being -$1.58, beating the consensus by 9.50%. EBITDA was $195.0 million for the quarter. At the end of Micron Technology Inc.’s most recent quarter ended May 30, its liabilities totaled 20.27 billion, while its total debt was $13.91 billion. Equity owned by shareholders amounts to $1.1 billion.
Technical Picture
Here’s a quick look at Micron Technology Inc.’s (MU) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 54.23%, suggesting the stock is Neutral, with a 42.81% historical volatility rate.
The stochastic %K and %D were 20.47% and 19.98% respectively, while the average true range (ATR) was 2.19. Based on the 14-day stochastic reading of 50.91%, the RSI (14) reading is 53.89%. On the 9-day MACD Oscillator, the stock is at -1.65, and the 14-day reading is at -2.60.
Analyst Ratings
In its analyst report released on July 20, 2023, Wolfe Research began covering Micron Technology Inc. (NASDAQ: MU). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Micron Technology Inc. (MU) an Overweight rating. MU is a stock that is recommended for selling by 1 brokerage firm, while 11 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 5 rates it overweight and 20 others recommend it as a buy.
What is MU’s price target for the next 12 months?
The current consensus forecast for the stock is between $46.00 and $100.00, with a median target price of $80.00. In analyzing these forecasts, the average price target given by analysts for Micron Technology Inc. (MU) is $77.31.
