Citigroup took its Micron Technology [MU] rating to the equivalent of Buy from Sell, and the price target to $100 from $35, in a research note dated 2021-01-05. That figure represents around a 35.04% premium from where the company’s shares closed on Monday. Other analysts also revised their coverage, with Deutsche Bank’s analysts upgrading the shares from “a Hold” rating to “a Buy” rating in a research note to investors issued in mid October. Meanwhile, UBS had maintained its rating on MU to the earlier “Buy” rating, in a research note produced for clients September 30, 2020. In addition, there was no change from RBC Capital Mkts on September 30, 2020. The rater maintained MU to “an Outperform” but assigned new target price of $57.
Is Micron Technology Inc. [NASDAQ:MU] a Good Buy Right Now?
It should be noted that MU technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 100% Buy in the last week and compares with 100% Buy in the past month. Data from Micron Technology Inc.’s Trend Spotter indicated that the signals were Strengthening. The stock current average is 15.52 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 16.22 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 17.85 million shares.
MU Price Performance
On Wall Street, Micron Technology Inc. [NASDAQ:MU] finished Monday’s session down -1.50% at $74.05. The stock went up to $78.61 at the same session while its lowest single day price was $73.75. In the last five days, it saw a rise of about 4.92%, Micron Technology Inc. shares dropped by almost -1.50% since the beginning of the year. However, the share price has dropped to as low as -2.15% below its one year high. On 01/04/21, the company shares recorded $78.61, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $73.75. The company’s shares have inclined by 35.80% in the past year. The 50-day SMA achieved is $63.57 while the 200-day SMA is $51.68. Volume gained to 31.16 million from 23.21 million in the previous session.
Micron Technology Inc. [MU] Valuation Measures
Notably, Micron Technology Inc. [MU] stock can be classified as a good candidate in the listing of underestimated low-priced Semiconductors companies to purchase soonest possible with the prevailing 12-month PE ratio of 31.15. The measure means the stock is exchanging at a discount as compared to the 32.48x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 3.69 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.63 which means MU serve an attractive investment opportunity compared to its competitors.
MU Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 72.33 level, and in case of violation of this particular level, it will cause more drop to 70.61 level. On the upper level, 80.33 is still the key resistance. The stock may increase to the subsequent resistance at 77.19. The Relative Strength Index (RSI) pinned on the 14-day chart is 67.06, implying a neutral technical stance while the MACD stands at 1.87, meaning price will increase in the next trading period. Percent R indicator moved to 48.15%, implying low price movement. Stochastic %K at 78.85% suggest selling the stock.
What is the short interest in Micron Technology Inc.?
Short interest in the Micron Technology Inc. stock has surged, increasing by 2.1 million shares to total 26.04 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 28.14 million, data from Yahoo Finance shows. The decrease of -8.06% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 2.34% of the overall float for the stock.
Micron Technology Inc.’s Biggest Shareholders: Who Owns Micron Technology Inc. [MU]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 83,818,329 shares or roughly 7.53% of the outstanding MU shares. This means their shares have reduced by -1,210,053 from the 83,818,329 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, BlackRock Fund Advisors updated stake is worth $3,587,092,433. Details in the latest 13F filings reveal that PRIMECAP Management Co. disposed off their -2.05% stake valued at $3,230,617,252 while SSgA Funds Management, Inc. cut theirs at $3,020,986,296. During the last quarter, PRIMECAP Management Co. liquidated -1,057,170 of its shares in Micron Technology Inc. while SSgA Funds Management, Inc. sold -1,046,704 shares. The Fidelity Management & Research Co’s holdings currently number 41,724,613 shares at $3089707592.65. According to the firm’s last 13F report, T. Rowe Price Associates, Inc. shares in the company at filing stood at 39,128,557 shares, roughly $2,507,749,218.
MU Earnings Forecast For The Current Quarter
Micron Technology Inc. [MU] is expected to report strong earnings results for the quarter ending on Nov 2020. Consensus estimates give the company expected revenues of $5.73B and an earnings per share of $0.71 for Nov 2020. Looking further ahead, the company is expected to report revenue of $5.49B at an EPS of $0.62 for Feb 2021. The estimates represent upside of 25.20% and 87.48% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
MU Earnings Estimates For The Current Year
For the financial year, Micron Technology Inc. [NASDAQ:MU] is expected to bring in revenue of $24.36B. The returns are nearly $2.93 billion higher than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 3.85, higher than that of FY20 by $1.02. Estimates put this year’s earnings growth at 36.00%, 89.90% for the next, and at an annual 14.24% over the next 5-year period. As for sales, forecasts are for an increase of 13.70% in the current fiscal year and a further 25.20% over the following year.