Micron Technology Inc. (MU) Testing Investors’ Patience Right Now

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GLBE Stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in Micron Technology Inc. (NASDAQ:MU). The institutional investor has increased its shareholding in the Technology company by 0.29% to 85.03 million shares with purchase of 0.25 million shares. This fresh investment now brings its stake to 7.65% valued currently at $4.26 billion. In addition, BlackRock Fund Advisors raised its holdings by 2.54 million to 54.85 million shares. And SSgA Funds Management, Inc. has lifted its position by 0.64% or 0.3 million shares – to 48.18 million shares.

With over 13.21 million Micron Technology Inc. (MU) shares trading Monday and a closing price of $45.51 on the day, the dollar volume was approximately $601.21 million. The shares have shown a positive weekly performance of 4.00% and its price on 08/31/20 lost nearly -0.39%. Currently, there are 1.11B common shares owned by the public and among those 1.11B shares have been available to trade.

Incidentally, analysts’ outlook for the Micron Technology Inc. stock is 2.20 for the next 12 months.

Insiders at the company have transacted a total of 85 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 696,774 shares. Insider sales of the common stock occurred on 52 occasions, with total insider shares sold totaling 416,082 shares.

The top 3 mutual fund holders in Micron Technology Inc. are Vanguard Total Stock Market Index, Vanguard PRIMECAP Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 31.62 million shares of the company’s stock, all valued at over $1.58 billion. The company sold 70734.0 shares recently to bring their total holdings to about 2.85% of the shares outstanding. Vanguard PRIMECAP Fund sold -0.5 million shares to see its total holdings shrink to 29.81 million shares valued at over $1.49 billion and representing 2.68% of the shares outstanding. Vanguard 500 Index Fund sold -0.14 million shares to bring its total holdings to over 22.93 million shares at a value of $1.15 billion. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.

Shares of Micron Technology Inc. (NASDAQ: MU) opened at $45.35, down -$0.34 from a prior closing price of $45.69. However, the script later closed the day at $45.51, down -0.39%. The company’s stock has a 5-day price change of 4.00% and -2.80% over the past three months. MU shares are trading -15.38% year to date (YTD), with the 12-month market performance up to 0.53% higher. It has a 12-month low price of $31.13 and touched a high of $61.19 over the same period. Currently, 13.21 million shares have been traded, compared to an average intraday trading volume of 20.41 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.21%, -6.68%, and -7.78% respectively.

Institutional ownership of Micron Technology Inc. (NASDAQ: MU) shares accounts for 82.90% of the company’s 1.11B shares outstanding. Mutual fund holders own 35.26%, while other institutional holders and individual stakeholders account for 47.00% and 1.41% respectively.

It has a market capitalization of $49.38B and a beta (3y monthly) value of 1.35. The stock’s trailing 12-month PE ratio is 22.75, while the earnings-per-share (ttm) stands at $2.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.39% over the week and 2.43% over the month.

Analysts forecast that Micron Technology Inc. (MU) will achieve an EPS of $1.01 for the current quarter, $0.77 for the next quarter and $4.19 for 2021. The lowest estimate earnings-per-share for the quarter is $0.83 while analysts give the company a high EPS estimate of $1.11. Comparatively, EPS for the current quarter was $0.56 a year ago. Earnings per share for the fiscal year are expected to decrease by -51.50%, and 51.25% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 35 brokerage firm advisors rate Micron Technology Inc. (MU) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 24 Wall Street analysts polled rate the stock as a buy, while 9 of the 35 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the MU, a number of firms have released research notes about the stock. Cascend Securities stated their Buy rating for the stock in a research note on August 13, 2020, with the firm’s price target at $70-$55. Deutsche Bank coverage for the Micron Technology Inc. (MU) stock in a research note released on August 13, 2020 offered a Hold rating with a price target of $48. Cowen was of a view on August 06, 2020 that the stock is Outperform, while RBC Capital Mkts gave the stock Outperform rating on June 30, 2020, issuing a price target of $55- $60. Raymond James on their part issued Strong Buy rating on June 30, 2020.


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