Chip Stock Sinks Further on "Sell" Reiteration

Micron stock has a history of making bigger-than-expected moves

Managing Editor
Aug 12, 2019 at 9:56 AM
facebook X logo linkedin

Chipmaker Micron Technology, Inc. (NASDAQ:MU) is down 0.5% at $41.31 this morning, after an analyst at Citigroup reiterated a brutal bear note. Christopher Danely reaffirmed the brokerage's "sell" rating and $30 price target, stating current inventory levels have reached record levels, leaving the stock at risk for lower earnings per share (EPS) and write-downs. From a long-term perspective, Danely believe MU could reach $60 if its EPS reached $11.74.

Micron Technology has had a rough go of late, with today's bear note surfacing on the heels of last week's Huawei ban drama and the stock's second straight weekly loss. The shares have pulled back to the 40-day moving average, a trendline which helped send MU higher on June 25. Micron stock is clinging to a 30% year-to-date gain.

A majority of analysts remain optimistic toward MU coming into today. Fourteen of 24 sport a "buy" or "strong buy" recommendation, while the remaining 10 carry a "hold" or "strong sell." Echoing this optimism, the stock's average 12-month price target of $47.85 is 15.3% above Friday's close.

Lastly, it looks like Micron stock has a history of making moves bigger than the options market was pricing in. This is based on the security's Schaeffer's Volatility Scorecard (SVS) of 90 out of 100.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI