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Chipmaker in Dire Need of Post-Earnings Pop

MU is a few weeks removed from an annual low

Digital Content Manager
Jun 28, 2022 at 12:12 PM
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Micron Technology, Inc. (NASDAQ:MU) stock was last seen down 0.7% to trade at $58.43 at $58.91, just ahead of the semiconductor company's fiscal third-quarter earnings, which are due out after the close on Thursday, June 30. Below, we'll break down Micron stock's recent post-earnings moves, and explore some of the sentiment surrounding MU ahead of the event. 

Looking over its last eight earnings reports, Micron stock tends to drop the following day, though it did stage a 10.5% post-earnings bounce back in December of 2021. Regardless of direction, MU has averaged a 5.1% next day move, much smaller than the 10.4% move the options pits are pricing in for Friday's trading. 

On the charts, Micron stock has seen a steep decline from its early January peak above the $98 level. The shares have lost 36.8% in 2022 and are just now coming off an annual low of $53.60, hit on June 17.

MU short-term players have been incredibly put-biased. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.38, which sits higher than all but 2% of readings from the past year. 

Analysts have maintained a their sunny outlook. Of the 17 in coverage, all but four consider the equity a "strong buy." Plus, the 12-month consensus price target of $97.51 is a 65.7% premium to current levels. 

 

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