Micron | $MU Stock | RAMming the Competition


Micron Technology Inc. (NASDAQ: MU)



MU Chart

MU jumped up Thursday following two analyst upgrades. On Wednesday, Romit Shah of Nomura upgraded Micron stock to buy, increasing the price target to $18.00 from a previous target of $8.00. On Thursday, at least one other analyst agreed, with Susquehanna upgrading the stock to positive, and raising its price target to $18.00 from $10.00. According to Shah, evidence of DRAM (Dynamic Random Access Memory) supply shortages began to appear during the past few weeks, driving up prices in the process Motley Fool.


Analyst Comments

Nomura discussed the upgrade today. “Our change in stance is based on recent supply shortages in memory, firmer pricing, and 20nm execution. We believe that semiconductor fundamentals are healthy or improving across several areas, including analog, SSDs, DRAM, and capital equipment,” the firm wrote in an analyst note received today. Susquehanna also said its checks over the last week indicate higher pricing for PC and server dynamic random-access memory (DRAM), which are rising into the second half of the year The Street.


Technical Analysis

MU gapped up in price today 10.46% to $14.05, a $1.33 increase from the previous day’s close. Looking at the chart, we see that it is up approximately 50% from its 52-week low. MU has not traded this high since January 6, 2016 when it closed at $14.22. Volume today was over 2.5 times as high at 69.7 million, compared with its average daily volume of 25.8 million. The stock also crossed over its 200 day moving average.


Micron Technology Inc. Recent Financials

On 03/30/2016 Micron released 2nd quarter financial results.
Revenues for the second quarter of fiscal 2016 were $2.93 billion and were 12 percent lower compared to the first quarter of fiscal 2016 and 30 percent lower compared to the second quarter of fiscal 2015. Cash flows from operations were $763 million for the second quarter of fiscal 2016 Global News Wire.


Company Profile

Micron Technology, Inc. provides semiconductor systems worldwide. It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. The company offers DDR4 and DDR3 DRAM products for computers, servers, networking devices, communications equipment, consumer electronics, automotive, and industrial applications; mobile low-power DRAM products for mobile phones, tablets, embedded, computers, and other mobile consumer device applications; DDR2 DRAM, DDR DRAM, GDDR5 DRAM, SDRAM, reduced latency DRAM, and pseudo-static DRAM products for use in networking devices, servers, consumer electronics, communications equipment, computer peripherals, automotive and industrial applications, and computer memory upgrades; and HMC semiconductor memory devices for use in networking and computing applications. It also provides NAND Flash products, which are electrically re-writeable, non-volatile semiconductor memory devices; client solid-state drives (SSDs) for notebooks, desktops, workstations, and other consumer applications; enterprise SSDs for server and storage applications; managed multi-chip package products; digital media products, including flash memory cards and JumpDrive products under the Lexar brand name. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho Yahoo Finance.