Micron Technology Inc. (NASDAQ:MU) previous close was $64.09 while the outstanding shares total 1.11B. The firm has a beta of 1.35, a 12-month trailing P/E ratio of 28.22, and a growth ratio of 3.10. MU’s shares traded higher over the last trading session, gaining 4.67% on 12/01/20. The shares fell to a low of $65.14 before closing at $67.08. Intraday shares traded counted 36.07 million, which was -101.73% lower than its 30-day average trading volume of 17.88M. The stock’s Relative Strength Index (RSI) is 80.65, with weekly volatility at 2.89% and ATR at 1.99. The MU stock’s 52-week price range has touched low of $31.13 and a $65.25 high.
Investors have identified the Semiconductors company Micron Technology Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $73.75 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Micron Technology Inc. (MU) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For MU, the company has in raw cash 7.62 billion on their books with 270.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 17965000000 million total, with 6635000000 million as their total liabilities.
MU were able to record 83.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 411.0 million. In cash movements, the company had a total of 8.31 billion as operating cash flow.
Potential earnings growth for Micron Technology Inc. (MU)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Micron Technology Inc. recorded a total of 6.06 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 19.58% coming in sequential stages and their sales for the third quarter increasing by 10.2%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 3.99 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.07 billion. This allows shareholders to hold on to 1.11B with the revenue now reading 0.89 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.95 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.55 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MU sounds very interesting.
Is the stock of MU attractive?
In related news, EVP, Technology & Products, Deboer Scott J sold 12,446 shares of the company’s stock in a transaction that recorded on Nov 30. The sale was performed at an average price of 65.00, for a total value of 808,990. As the sale deal closes, the SVP, Chief People Officer, ARNZEN APRIL S now sold 11,668 shares of the company’s stock, valued at 713,616. Also, EVP, Technology & Products, Deboer Scott J sold 25,000 shares of the company’s stock in a deal that was recorded on Nov 16. The shares were price at an average price of 60.00 per share, with a total market value of 1,500,000. Following this completion of acquisition, the SVP, General Counsel&Secretary, Poppen Joel L now holds 30,900 shares of the company’s stock, valued at 1,755,157. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.