Are Micron (NASDAQ:MU) Shares Worth Your Time and Dime Following Recent Morgan Stanley Upgrade?


Micron (NASDAQ:MU) Stock Upgrade

Research professionals at the Morgan Stanley equities research division upgraded shares of Micron (NASDAQ:MU) from a Equal-Weight to a Overweight on 17 December.

From a total of 30 analysts covering Micron Technology Inc. (NASDAQ:MU) stock, 20 rate it a ”Buy”, 4 a “Sell”, and 9 a ”Hold”. This means that 61% of the ratings are positive. The highest target price is $43 while the lowest target price is $11. The mean of all analyst targets is $20.72 with a 53.21% above today’s ($14.49) stock price. Micron Technology Inc. was the topic of 41 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. Maxim Group maintained shares on December 15 with “Buy” rating. Wedbush maintained shares with “Neutral” rating and $15.0 target share price in a report from an October 2. Needham downgraded MU stock in a recent report from October 21 to “Hold” rating. Morgan Stanley maintained the rating on October 2. Morgan Stanley has a “Equal-Weight” rating and a $16 price target on shares. Finally, Deutsche Bank maintained the stock with “Buy” rating in a report issued on an October 2.

Approximately 15.51 million shares of stock traded hands. Micron Technology, Inc. (NASDAQ:MU) has declined 47.28% since May 14, 2015 and is downtrending. It has underperformed by 45.02% the S&P500.

Analysts await Micron Technology, Inc. (NASDAQ:MU) to reports earnings on January, 5. They expect $0.23 earnings per share, down 76.29% or $0.74 from last year’s $0.97 per share. MU’s profit will be $230.48M for 15.75 P/E if the $0.23 EPS becomes reality. After $0.37 actual earnings per share reported by Micron Technology, Inc. for the previous quarter, Wall Street now forecasts -37.84% negative EPS growth.

The overall sentiment of institutions has increased to 0.98 in Q2 2015. Its up 0.12, from 0.86 in 2015Q2. The ratio improved, as 107 institutions have sold all the shares of Micron Technology, Inc. that they owned while 203 funds have taken shares off the table. 63 funds have purchased shares for the first time while 242 added to their positions. These institutions now hold 801.58 million shares or 13.68% less than the 928.62 million shares they owned in 2015Q2.

The Fund Alken Asset Management Ltd. currently is holding shares equating to 20.2% of its total portfolio in Micron Technology, Inc. representing a total of 23.66 million shares. Another fund,Dalton Investments Llc, is holding a total of 2.25 million shares equating to 16.95% of their holdings. Additionally, Credit Capital Investments Llc has a 1.40 million share stake in Micron Technology, Inc. which represents 14.1% of their total portfolio. The Fund, Karamaan Group Llc, based out of New York, has also built up a stake in the stock, which represents a total of 9.66% of their total portfolio. Finally Donald Smith & Co. Inc., a fund which is based in the state of New York reported a total holdings of 14.17 million shares.

Insider activity is a very important aspect to track on any stock. Going back to April 20, 2015, shareholders of Micron Technology, Inc. have witnessed 0 insider buys, and a total of 1 insider sale equating to a net activity of approximately $80,002 . Bailey Robert L sold 4,000 shares worth approximately $80,002. Deboer Scott J sold 39,087 shares worth approximately $977,437. Shirley Brian sold 89,750 shares worth approximately $2.58 million. Johnson Mercedes sold 18,250 shares worth approximately $509,540.

Micron Technology, Inc. is a global well-known provider of semiconductor devices. The company has a market cap of $14.52 billion. Through the Company’s global operations, it makes and markets a full range of Dynamic Random Access Memory , NAND Flash and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, automotive, industrial, embedded and mobile products. It has 5.88 P/E ratio. The Firm operates in four divisions: Compute and Networking Business Unit (CNBU), which includes DRAM and NOR Flash products; Mobile Business Unit (MBU), which includes DRAM, NAND Flash and NOR Flash products; Storage Business Unit (SBU), which includes NAND Flash components and Solid-State Drives (SSDs), cloud and removable storage markets.

According to Zacks Investment Research, “Micron Technology, Inc. has established itself as one of the leading worldwide providers of semiconductor memory solutions. The company’s quality memory solutions serve customers in a variety of industries including computer and computer-peripheral manufacturing, consumer electronics, CAD/CAM, telecommunications, office automation, network and data processing, and graphics display. The company’s mission is to be the most efficient and innovative global provider of semiconductor memory solutions.”