Micron Stock Dinged by Downgrade

MU is up 50% year-over-year

Deputy Editor
Jun 23, 2020 at 10:51 AM
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The shares of semiconductor name Micron Technology Inc (NASDAQ:MU) are down 2.8% at $49.73 at last check. Today's breather comes after a downgrade from BMO to "market perform" from "outperform," with an added price-target cut to $55 from $60. The analyst in coverage sees decelerating fundamentals for the sector, and expects the trend to continue for the next three-to-four quarters. 

On the charts, Micron stock has spent the last two months in an uptrend, with its 40-day moving average containing pullbacks. Longer term, MU is up 50% in the last 12 months, but remain a ways off their Feb. 12 all-time highs of $61.19. 

Coming into today, analysts are, for the most part, bullish on Micron stock, with 14 out of 19 at a "buy" or better rating, and only one "sell" stance to be found. Meanwhile, the 12-month consensus price target is up at $62.46, a 22.1% premium to its current perch.

The options pits lean heavily in favor of calls. The stock's 10-day call/put volume ratio of 4.09 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than all but 1% of readings from the past year. In other words, besides quadrupling put volume, calls are also being picked up at a much faster-than-usual rate. 

 

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