How Micron Performed Last Week



Micron stock fell ~6.5% last week

Micron Technology (MU) stock fell more than 6.5% last week (ended January 12, 2018) and closed at $42.81. The stock is currently trading 99% above its 52-week low of $21.49 and 14.2% below its 52-week high of $49.89.

In the trailing-12-month period, the stock has risen ~90%, while in the past month, the stock has gained 2.3%. The stock rose almost 90% in calendar 2017, driven by a trailing-12-month revenue growth of 33% to over $23 billion.

By comparison, semiconductor (SMH) peers Intel (INTC) and Qualcomm (QCOM) generated returns of 20% and 2%, respectively, in 2017.

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Micron beat analyst earnings estimate by 10.9% in fiscal 1Q18, by 9.8% in fiscal 4Q17, by 7.3% in fiscal 3Q17, and by 4.7% in fiscal 2Q17. As the stock has generated significant returns over the past 15 months, it’s quite likely that investors have booked profits that resulted in a stock price fall last week.

How do analysts view Micron?

Micron will be announcing its fiscal 2Q18 results on March 21, 2018. Analysts expect Micron to post revenues of $7 billion. Analysts have a low revenue estimate of $6.88 billion and a high estimate of $7.1 billion for Micron for the quarter ended January 2018.

If Micron meets average revenue estimate of $7 billion, it would mean a YoY (year-over-year) rise of 51%, compared with its revenues of $4.65 billion in 2Q17. Analysts expect Micron’s revenues to rise 24.6% in 3Q18 and 36.6% in fiscal 2018.

Of the 30 analysts tracking Micron, 27 gave the stock a “buy” recommendation, and three analysts recommended a “hold.” No analyst recommended a “sell” on the stock. The analysts’ price target for Micron stock is $58.89, with a median target estimate of $58.00.

Micron is now trading at a discount of ~35% to the median analyst estimate.


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