During the first quarter, guru Donald Smith (Trades, Portfolio) added to his stake in Micron Technology Inc. (MU, Financial).
Micron Technology is a global leader in the semiconductor industry. The company was incorporated in 1978. Micron manufactures and markets a range of DRAM, NAND Flash and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products.
Micron Technology has a market cap of $10.36 billion, a P/E ratio of 10.61, an enterprise value of $14.92 billion and a P/B ratio of 0.81.
According to GuruFocus, Micron Technology has three good signs. Micron's stock price is close to its two-year low. The P/B ratio is 0.91, which is close to the three-year low of 0.85. The P/S ratio is 0.87, which is also close to a three-year low of 0.82.
Below is a Peter Lynch Chart for Micron Technology Inc.
On May 9, Parnassus Fund commented on Micron Technology.
"Micron Technology was our worst performer, as its stock fell 26.1% from $14.16 to $10.47 and reduced the return by 114 basis points. Micron makes semiconductor memory chips, and its stock fell after weaker-than-expected demand for personal computers caused memory chip prices—and Micron’s earnings—to decline. This issue has been affecting the company for over a year now, and the stock has fallen dramatically from its peak of $36.49 in December of 2014. We don’t know precisely when memory chip prices will stabilize, but we’re confident they eventually will. Memory chips benefit from the long-term trends of increasing smartphone penetration in emerging markets; the proliferation of Internet-connected devices, such as watches, cars and industrial machines; and the rapid growth of data centers. Micron is now trading below its book value of $11.80, and we took advantage of the deeply discounted price to add to our position."
Micron has multiple good signs, according to GuruFocus. The company is also trading below its book value. These factors may have influenced Smith to add to his stake in Micron Technology.
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