Micron Technology (MU, Financial) shares rose 2.6% to hit $27.60 on Friday trading. Micron Technology is currently trading 26.48% lower than its 52 week high, and 5.04% above its 52 week low. Micron’s one-year range for the stock price is $25.61 to $36.59. The company has a price to earnings ratio of 8.27 compared to the technology sector’s average of 17.04.
The company’s stock price has underperformed the NASDAQ by 30.3%. The dynamic random access memory devices specialist company is currently valued at $28.89 billion with a share price closing the last trade session at $26.90. Micron Technology’s 50 day moving average is $27.82 with a 200 day moving average of $30.67.
Micron Technology has a 10-day average volume of 21.86 million shares with its current short interest standing at 79.74 million shares. Micron Technology’s announced an EPS on April 1 of $0.81 beating the estimate average by $0.04. Analysts feel Micron Technology will post an EPS of $3.13 for the fiscal year ahead. With a market cap of $29.57 billion, Micron Technology has revenue for the quarter rising 1.4% on a y-o-y basis.
Company profile
Micron Technology was founded in 1978 and is based out of Boise, Idaho. Micron Technology and its subsidiaries are in the business of providing semiconductor solutions on a global scale. Micron Technology creates and sells dynamic random access memory (DRAM), memory products, packaging solutions and semiconductor systems. Operating in four sectors: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. Micron technology offers DRAM products for storage and retrieval of data which include DDR4 and DDR3 offering optimal speed and high bandwidth, DRAM products offering lower power consumption, DRAM products related to specialty markets, as well as pseudo-static DRAM devices used in servers, consumer electronics, networking devices and automotive applications. Micron Technology also resells flash memory devices acquired from its NAND flash suppliers. It provides NOR flash memory products electrically re-writeable memory devices used in consumer and industrial electronics, wireless communications and computing applications. Targeting original equipment developers and retailers using an internal sales force, independent salespersons and through a website related sales platform.
Analysis
Micron Technology has managed to grow both sales and net income at a quicker rate compared to its competitors in the industry this quarter as compared y-o-y to the same quarter last year. The company has extremely strong liquidity with a quick ratio of 1.76 showing the ability to cover short-term cash needs. Its liquidity has increased from the same period last year.
This same period saw stockholders’ equity grow by 33.08% from the same quarter last year. The company’s key liquidity measurements show the company will not be facing financial difficulties in the near future.
Micron Technology is being given a BUY rating by analysts. This rating is based off the convergence of positive investment measures that will help the stock outperform the analysts’ predictions. The company’s strengths include revenue growth, a solid financial position alongside reasonable debt levels, a sizeable return on equity, attractive valuation levels and expanding profit margins. Micron Technology’s only evident weakness seems to be its weak operating cash flow.
