Micron Technology, Inc. (MU) Stock: Why It’s Headed For The Top

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Micron Technology, Inc. (MU) is headed up in the market in today’s trading session. The stock, one that is focused in the technology industry, is currently trading at $41.62 after a move up of -5.39% so far in today’s session. In terms of technology companies, there are several aspects that have the potential to lead to gains in the market. News is one of the most common reasons for movement. Here are the recent headlines centered around MU:

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Mar-22-19 06:40PM Mohnish Pabrai Interview With GuruFocus: Finding Value in India and the US
06:25PM Lifshitz & Miller LLP Announces Investigation of Corbus Pharmaceutical Holdings, Inc., Domino’s Pizza, Inc., Eventbrite, Inc., Healthcare Services Group, Inc., Maxar Technologies, Inc., and Micron Technology, Inc.
04:57PM Soft Start to Q1 Earnings Season
03:10PM CLASS ACTION UPDATE for MU, CVS and AMR: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
02:38PM Top Analyst Reports for Alphabet, Wells Fargo & PetroChina

Nonetheless, when making an investing decision, investors should take a look at much more than just news, especially in the ever changing technology sector. Here’s what’s happening with Micron Technology, Inc..

Recent Trends From MU

While a move up on a single session, like what we’re seeing from Micron Technology, Inc. might lead to excitement in some investors, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally smart to dig into trends experienced by the stock beyond a single session. As it relates to MU, here are the movements that investors have seen:

  • Past Seven Days – Throughout the last five trading sessions, MU has generated a change in value amounting to 5.26%.
  • Monthly – The ROI from Micron Technology, Inc. throughout the last 30 days comes to 0.22%.
  • Past Quarter – Throughout the past three months, the stock has produced a return that works out to 32.51%
  • Past 6 Months – Throughout the last six months, we have seen a change that amounts to -7.63% from the stock.
  • Year To Date – Since the close of last year MU has produced a return of 31.17%.
  • Annually – Finally, in the last full year, investors have seen movement in the amount of -31.85% from MU. In this period of time, the stock has sold at a high price of -35.63% and a low price of 46.60%.

Rations That You Should Look Into

Looking at various ratios having to do with a stock can provide investors a view of how dangerous and/or potentially profitable a an investment option might be. Here are some of the most important ratios to think about when digging into MU.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the value of the stock is going to fall. Throughout the sector, strong technology stocks tend to have a lower short ratio. However, we tend to see quite a few short squeezes in the industry. Nonetheless, in regard to Micron Technology, Inc., the stock’s short ratio clocks in at 1.50.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure the company’s abilities to pay its debts as they mature with only current assets or quick assets. Because in tech, companies rely on continued investor support as they work to bring new technologies to market, the current and quick ratios can look upsetting. Nonetheless, several good picks in the technology sector do have good quick and current ratios. As it relates to MU, the quick and current ratios total up to 2.20 and 2.90 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio works out to 29.89.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value ratio is 5.11.

Is Big Money Interested In Micron Technology, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in MU, here’s what we’re seeing:

Institutions own 79.20% of the company. Institutional interest has moved by 0.33% over the past three months. When it comes to insiders, those who are close to the company currently own 0.20% percent of MU shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

What Analysts Say About Micron Technology, Inc.

While it’s never a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their analysis to validate your own thoughts when it comes to making an investment decision in the technology industry. Here are the most recent moves that we have seen from analysts as it relates to MU.

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Mar-21-19 Downgrade Citigroup Neutral → Sell $35 → $30
Mar-15-19 Downgrade Cross Research Buy → Hold
Jan-09-19 Upgrade Bernstein Mkt Perform → Outperform
Dec-19-18 Downgrade RBC Capital Mkts Outperform → Sector Perform
Dec-19-18 Downgrade Needham Buy → Hold

Financial Results And Expectations

What have ween seen from MU in terms of financial results?Here’s the information:

  • Analyst Expectations – At the moment, Wall Street analysts expect that Micron Technology, Inc. will generate earnings per diluted share of 6.13, with 1.70 being announced in the earnings report for the current quarter. Although this data isn’t based on earnings, since we are talking on the topic of Wall Street analysts, the stock is currently rated a 2.40 on a scale from 1 to 5 on which 1 is the poorest analyst rating and 5 is the best possible rating.
  • 5-Year Sales – In the last 5 years, Micron Technology, Inc. has reported a movement in sales volume that works out to be 27.30%. EPS in the last 5 years have generated movement in the amount of 58.80%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is commonly represented in the human world, the company has generated a change in earnings that amounts to 30.10%. Micron Technology, Inc. has also seen movement in terms of sales that adds up to 16.30%.

Interested In How Many Shares Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 1.09B shares of Micron Technology, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, MU has a float of 1.07B.

I also find it important to pay attention to the short percentage of the float. After all, if a large portion of the float is sold short, the overall opinion in the market is that the company is headed for a dive. As far as MU, the percentage of the float that is sold short comes to a total of 4.74%. Most traders believe that a high short percent of the float would be any percentage over 40%. In my research, I’ve seen that any short percent of the float over 26% is generally a a play that could prove to be very risky.

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