Possible Explanations for Why Micron Technology, Inc. (MU) Trades Today Up 3.56%

An interesting stock that came up in some of our conversations today is Micron Technology, Inc. (NASDAQ:MU). At current price of $44.82, the shares have already added 1.54 points (3.56% higher) from its previous close of $43.28. Should you buy or avoid them? The stock sets an active trading volume day with a reported 10460811 contracts so far this session. MU shares had a relatively better volume day versus average trading capacity of 24.86 million shares, but with a 1.1 billion float and a -0.41% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MU stock indicates that the average analyst price target is $54.48 per share. This means the stock has a potential increase of 21.55% from where the MU share price has been trading recently which is between $42.61 and $43.79. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $30. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $90.

During the recent trading session for Micron Technology, Inc. (NASDAQ:MU), the company witnessed their stock rise $0.35 over a week and tumble down $-5.6 from the price 20 days ago. When compared to their established 52-week high of $51.39, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 11/09/19. The recent low of $28.39 stood for a -12.78% since 12/26/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.95 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for MU is set at $59, a figure which is above the recent 1-year high the stock witnessed.

Looking at the current readings for Micron Technology, Inc., the two-week RSI stands at 48.63. This figure suggests that MU stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current MU readings is similarly very revealing as it has a stochastic reading of 23.28% at this stage. This figure means that MU share price today is being overbought.

Technical chart claims that Micron Technology, Inc. (MU) would settle between $43.84/share to $44.41/share level. However, if the stock price goes below the $42.66 mark, then the market for Micron Technology, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $42.05 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.34. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Cowen lifted target price for shares of MU but were stick to Market Perform recommendation for the stock in their opinion released on September 25. The price target has been raised from $38 to $46. Goldman analysts again handed out a Buy recommendation to Micron Technology, Inc. (NASDAQ:MU) stock but they lifted target price for the shares in a flash note issued to investors on September 18. The target price has been raised from $56 to $59. Analysts at Longbow released an upgrade from Neutral to Buy for the stock, in a research note that dated back to September 11.

MU equity has an average rating of 2.49, with the figure leaning towards a bullish end. 31 analysts who tracked the company were contacted by Reuters. Amongst them, 8 rated the stock as a hold while the remaining 23 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 20 analysts rated Micron Technology, Inc. (NASDAQ:MU) as a buy or a strong buy while 3 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, MU stock price is currently trading at 8.11X forward 12-month Consensus EPS estimates, and its P/E ratio is 7.9 while for the average stock in the same group, the multiple is 5.2. Micron Technology, Inc. current P/B ratio of 1.3 means it is trading at a discount against its industry’s 1.4.