Micron Stock Dinged by Downgrade

MU is up 50% year-over-year

Deputy Editor
Jun 23, 2020 at 10:51 AM
facebook twitter linkedin


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. 

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!