Chip Stock Sinks Further on "Sell" Reiteration

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

by Emma Duncan

Published on Aug 12, 2019 at 9:56 AM

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.

a schaeffer's exclusive


We're celebrating 38 years with this FREE insider report!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
Bull Notes For Aramark Stock After Activist Investor Stake
Aramark is one of the best stocks on the NYSE today
Big Sale Boosts TLRD Stock
The company is selling its corporate apparel business for $62 million
IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.