Micron Technology, Inc. (MU) Stock: A Technology Stock That’s Making Its Way For The Top

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Micron Technology, Inc. (MU) is gaining in the market in today’s trading session. The company, focused on the technology sector, is currently priced at $41.62 after climbing -5.39% so far today. In terms of technology companies, there are a number of aspects that have the ability to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines associated with MU:

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Mar-23-19 10:14AM Micron stock surge leads chips to near record high levels
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

Nonetheless, when making a decision with regard to investing, prospective investors should focus on much more than news, this is especially the case in the ever changing tech space. Here’s what’s going on with Micron Technology, Inc..

Recent Movement From MU

Although a move toward the top in a single session, like the move that we’re seeing from Micron Technology, Inc. might cause excitement in some investors, a single session gain by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s always smart to look into trends experienced by the stock just a single trading day. In the case of MU, here are the returns that investors have experienced:

  • Past 5 Trading Sessions – Throughout the last week, MU has seen a change in value amounting to 5.26%.
  • Past Month – The return from Micron Technology, Inc. in the last 30 days works out to 0.22%.
  • Past Quarter – Throughout the past three months, the company has generated a ROI of 32.51%
  • Bi-Annually – Throughout the previous six months, investors have seen a performance that amounts to -7.63% from the company.
  • YTD – Since the the first trading session of this year MU has generated a ROI of 31.17%.
  • Full Year – Finally, in the last year, we’ve seen performance in the amount of -31.85% out of MU. In this period of time, the stock has sold at a high price of -35.63% and a low price of 46.60%.

Key Ratios

Looking at various ratios having to do with a stock can provide prospective traders a look of just how dangerous and/or potentially profitable a stock pick may be. Below are some of the key ratios to look at when digging into MU.

Short Ratio – The short ratio is a tool that is used by investors to measure the amount of short interest. As the short ratio goes higher, it shows that more investors are expecting that the value of the stock is headed for declines. Across the sector, strong technology stocks can have a lower short ratio. However, we tend to see quite a few short squeezes in the space. Nonetheless, with regard to Micron Technology, Inc., it’s short ratio is 1.50.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure the company’s abilities to cover its debts when they mature based on quick assets or current assets. In the tech sector, many companies rely heavily on continued support from investors as they work to bring new technologies to market, these ratios can look upsetting. Nonetheless, some better companies in the tech sector do have great quick and current ratios. In terms of MU, the quick and current ratios work out to 2.20 and 2.90 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the share price. when it comes to Micron Technology, Inc., that ratio comes in at 29.89.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of shares. In this case, the cash to share value ratio works out to 5.11.

Big Money And 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 – Currently, institutions own 79.20% of Micron Technology, Inc.. However, it’s important to note that the ownership held by institutions has seen a move of 0.33% in the past quarter.
  • Insider Moves – As far as insiders go, insiders of the company currently own 0.20% of Micron Technology, Inc.. Insider ownership of the company has seen a move of 0.00% over the last quarter.

What Analysts Say About Micron Technology, Inc.

Although it’s not a good idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their opinions when validating your own due diligence before making an investment decision in the technology space. Below are the 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

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $6.13. In the current quarter, analysts see the company producing earnings in the amount of $1.70. Over the last 5 years, MU has generated revenue in the amount of $27.30% with earnings coming in at 58.80%. On a quarter over quarter basis, earnings have seen movement of 30.10% and revenue has seen movement of 16.30%.

How Many Shares Of MU 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 look at the short percentage of the float. After all, if a large portion of the float available for trading is shorted, the overall feeling among investors is that the stock is headed for a deep dive. As far as MU, the short percentage of the float totals up to 4.74%. Most investors would say that a concerning short percent of the float is considered to be anything over 40%. However, I have found that any short percent of the float over 26% is generally a play that comes with hefty risk.

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