The chipmaker beat fiscal third-quarter expectations
Micron Technology Inc (NASDAQ:MU) stock is 1.7% lower to trade at $125.06 at last check, despite the chipmaker's fiscal third-quarter earnings and revenue beat. The equity also saw no fewer than 16 price-target hikes in response, including one from Rosenblatt to $200 from $172.
Analysts leaned optimistic coming into today, making this wave of bull notes even more impressive. In fact, 26 of the 30 firms in coverage sport a "buy" or better rating, while the 12-month consensus price objective of $137.40 is a 7.7% premium to MU's current levels.
MU earlier hit a new year-to-date peak of $129.85 before reversing gains, but a newfound floor at the $120 level looks ready to contain the pivot. Shares boast a 50.8% year-to-date lead and remain well on their way to a healthy weekly gain, despite being on track for their third daily drop in four.
Options traders are chiming in, with 139,000 calls and 97,000 puts exchanges so far today, which is 5 times the volume typically seen at this point. Most active is the weekly 6/27 130-strike call, where new positions are being opened.
Micron stock has consistently exceeded options traders' volatility estimates, as reflected in its Schaeffer’s Volatility Scorecard (SVS) score of 96 out of 100. In other words, the security has historically delivered larger-than-expected price swings.