MU stock: buy or sell
Updated on:
Jan 27th, 2021
2
MU stock brief
- Counting on Tuesday, it's been 3 consecutive sessions in red for Micron. Price closed on Tuesday at $79.51 after going down a -2.18%.
- The stock is configuring an uptrend pattern since August 2020, when it bottomed at $42.25. This rally marked a 88.19% gain
- Micron Technology, Inc. designs, manufactures, and sells memory and storage products worldwide.
Should I buy Micron stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $MU stock a buy?
In the current situation of Micron there is not any eligible buy setup. This doesn't mean $MU will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Micron stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Much like when we have to buy shares, choosing when is appropiate to sell is not a whimsy decision, and we must adhere our own trading strategy. When selling, as well as buying, detailed setups are very easy to use and are only applicable for selling shares you already own, not for shorting $MU stock
As a golden rule, you should never mantain an open trade that leads to greater losses than those expected at the time of purchase. The timing to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Micron stock?
In the current situation of Micron there is not any eligible sell setup, so Micron stock holders with operations in profit can keep their positions
Micron ratings
In the last month, 20 ratings were published for Micron. General sentiment is bullish, with 16 out of 20 publishing optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Dec 28th, 2020 | |
| Mizuho | |
| Jan 4th, 2021 | |
| Morgan Stanley | Buy |
| Jan 5th, 2021 | |
| Deutsche Bank Aktiengesellschaft | Neutral → |
| Royal Bank of Canada | Buy → Buy |
| Smith Barney Citigroup | |
| Jan 8th, 2021 | |
| Barclays | Buy |
| Cowen | Buy |
| Credit Suisse Group | Buy |
| Evercore ISI | Buy |
| JPMorgan Chase & Co. | Buy → Buy |
| KeyCorp | Buy |
| Longbow Research | Neutral → |
| Mizuho | |
| Needham & Company LLC | |
| Piper Sandler | Buy → Neutral |
| Raymond James | Neutral |
| Rosenblatt Securities | |
| Smith Barney Citigroup | Neutral |
| Summit Insights | Neutral → |
| Wedbush | Neutral |
Micron stock analysis
Micron shares started an uptrend in August 2020, and grew a gorgeous 88.19%. During this uptrend, the price offered some buy points on the breakouts. Latest pullback was in late December, when price bounced at $69.14. Currently, it trades in a consolidation between its last top ($87.25) and its last bottom ($69.14)
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on January 19, the price has corrected downwards by 7.20%
Relative strength index
The RSI dropped below the overbought level of 70 last Friday after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Tuesday was 55.93
Micron stock price history
Micron started trading priced at an adjusted price1 of $0.00 on Jun 1984. Since then, MU stock surged by -, with an average of 0.00% per year. If you had invested $1,000USD in Micron stock on Jun 1984, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Micron stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis forecasting how a particular stock will performance in the future.
The following table shows the price target released by financial institutions for the last 30 days. Again, these targets are not direct recommendations for small traders and should not be followed blindly.
The average price target for Micron stock calculated from the table below is $98.11. That is a 23.39% than the last price ($79.51).
| Brokerage firm | Price target |
|---|---|
| Dec 28th, 2020 | |
| Mizuho | $75.00 → $85.00 |
| Jan 4th, 2021 | |
| Morgan Stanley | $80.00 → $88.00 |
| Jan 5th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $75.00 → $85.00 |
| Royal Bank of Canada | $57.00 → $83.00 |
| Smith Barney Citigroup | Not available |
| Jan 8th, 2021 | |
| Barclays | $75.00 → $100.00 |
| Cowen | $80.00 → $90.00 |
| Credit Suisse Group | $90.00 → $110.00 |
| Evercore ISI | $90.00 → $105.00 |
| JPMorgan Chase & Co. | $85.00 → $100.00 |
| KeyCorp | $82.00 → $121.00 |
| Longbow Research | $83.00 → $96.00 |
| Mizuho | $85.00 → $92.00 |
| Needham & Company LLC | $80.00 → $100.00 |
| Piper Sandler | $65.00 → $80.00 |
| Raymond James | $80.00 → $110.00 |
| Rosenblatt Securities | $100.00 → $120.00 |
| Smith Barney Citigroup | $100.00 → $113.00 |
| Summit Insights | Not available |
| Wedbush | $82.00 → $88.00 |
Earnings and financials
On January 7, Micron Technology, Inc. ($MU) posted adjusted EPS for that slightly enhanced analysts' expectations. Quarterly EPS was $0.78 per share from an estimated $0.71. This quarterly report represents an earnings surprise of 9.86%. On the contrary, reported sales were $5.8 billion, aligned with the market estimates.
Same quarter last year, reported EPS was $0.45, so recently reported EPS is an increase of 73.33%. Revenue grew a 12.23% on an annualized basis in the , from $51.4B to $57.7B last quarter.MU ($MU) will host the quarterly earnings call next March.
Micron competitors
Micron is part of the Technology sector and the Semiconductors industry, which contain industry peers.
The following are Micron biggest competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Micron ($MU) | $90.3B | Buy | 16 |
| Intel ($INTC) | $212.4B | Neutral | 9 |
| STMicroelectronics ($STM) | $36.6B | | 5 |
| Western Digital ($WDC) | $15.8B | | 3 |
| Rambus (RMBS) | $2.4B | Buy | 1 |
| Photronics (PLAB) | $752.5M | Neutral | 0 |
| MoSys (MOSY) | $10.1M | Neutral | 0 |
1 In the last 30 days.
Micron performance
To better understand Micron performance you must compare its gains with other related stocks in same sector or industry.. For Micron, the benchmark is made against Intel, STMicroelectronics, Western Digital, Rambus, Photronics and MoSys.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Micron ($MU) | 13.10% | 51.70% | 55.10% |
| Intel ($INTC) | 18.50% | 16.20% | 13.20% |
| STMicroelectronics ($STM) | 8.50% | 18.50% | 37.90% |
| Western Digital ($WDC) | 3.50% | 25.90% | 20.00% |
| Rambus (RMBS) | 14.20% | 41.80% | 38.70% |
| Photronics (PLAB) | 7.10% | 13.10% | -1.40% |
| MoSys (MOSY) | 43.40% | 69.00% | 53.90% |
Important:
The comments written in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not know the particular positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for informational motives onlyMU summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $81.79 |
| Close | $79.51 |
| Day range | $79.01 - $81.98 |
| Previous close | $81.28 |
| Session gain | -2.18% |
| Average true range | $3.84 |
| 50d mov avg | $71.73 |
| 100d mov avg | $60.89 |
| 200d mov avg | $54.37 |
| Earnings date | March 24th, 2021 |
Frequently asked questions
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Latest Micron news
- Seeking AlphaMicron: Buy The RallyNov 19, 2020