Micron Technology Inc (NASDAQ: M.U.) saw a dip in its shares on Friday morning, following a downgrade from Morgan Stanley. The downgrade came from analyst Joseph Moore, who changed Micron’s rating from Equal-Weight to Underweight. Moore cited concerns over the company’s valuation, stating that the stock had rallied too far off the lows. He also worried about Micron’s weaker guidance, which he believes may not necessarily lead to better outcomes for the company. Moore’s concerns were compounded by the possibility of inventory buildup, which could result in supply problems well into 2023.
Adding to the negative sentiment around Micron is news that China has launched a cybersecurity review of the company’s products. While the reasons for the review are unclear, this news may also contribute to the decline in Micron’s shares.
Micron Technology Inc. Stock Analysis: Earnings Growth, P/E Ratio, and Industry Comparison
On March 31, 2023, Micron Technology Inc. (M.U.) opened at $60.33, lower than the previous day’s close of $63.08. Throughout the day, M.U. stock fluctuated between $59.90 and $61.64, with a volume of 647,827 shares traded. This volume was significantly lower than the average volume of the past three months, which was 15,210,202 shares. Despite the lower volume, M.U.’s market cap remained at $66.7B.
The earnings growth of Micron Technology Inc. in the past year was impressive, with a growth rate of 49.28%. However, the earnings growth for this year was -128.37%, which was a significant drop. The earnings growth for the next five years is expected to be -18.86%, indicating a challenging future for the company. On the other hand, the revenue growth for the past year was positive, with a growth rate of 11.02%.
The P/E ratio of M.U. stock was 43.3, which is relatively high compared to the industry average. The price/sales ratio was 2.09, and the price/book ratio was 1.37. These ratios indicate that the stock may be overpriced, which could concern investors.
In terms of the sector and industry, Micron Technology Inc. belongs to the Electronic Technology sector and the Semiconductors industry. The company’s net profit margin was 28.24%, higher than the industry average. However, the EPS forecast for this quarter was -$1.51, which is a significant loss.
Looking at the performance of other companies in the same industry, Lam Research Corp (LRCX) and STMicroelectronics N.V. (STM) were down by 0.74% and 0.09%, respectively. Meanwhile, NXP Semiconductors N.V. (NXPI) was up by 0.41%.
Micron Technology Inc. is set to report its subsequent earnings on June 29, 2023. With the current EPS forecast, investors may want to monitor the company’s financial performance. Despite the positive revenue growth in the past year, the negative earnings growth for this year and the next five years may be a cause for concern.
Investors Bullish on Micron Technology Inc. as Analysts Forecast a 14.66% Increase in Stock Price
Micron Technology Inc. (M.U.) is a leading manufacturer of memory and storage solutions for a variety of applications. The company has been in the news lately for its strong financial performance and positive outlook, leading to increased investor interest in the stock. On March 31, 2023, the stock was trading at $61.05, and analysts were forecasting a median target price of $70.00, which represents a +14.66% increase from the current price.
According to data from CNN Money, the 31 analysts offering 12-month price forecasts for M.U. have a median target of $70.00, with a high estimate of $100.00 and a low estimate of $45.00. This suggests that most analysts are bullish on the stock and expect it to perform well in the coming months.
Furthermore, the current consensus among 39 polled investment analysts is to buy stock in Micron Technology Inc. This rating had held steady since February, when it was unchanged from a buy rating. This indicates that investor sentiment toward the stock has remained positive, despite market volatility and uncertainty.
Looking at the company’s financial performance, Micron Technology Inc. reported earnings per share of -$1.51 and sales of $3.7B for the current quarter, with a reporting date of June 29. While the earnings per share figure may seem concerning, it is essential to note that the semiconductor industry is highly cyclical, and companies like Micron Technology Inc. are subject to fluctuations in demand and pricing.
Despite these challenges, Micron Technology Inc. has a strong track record of innovation and consistently delivers high-quality products to its customers. The company’s focus on research and development has enabled it to stay ahead of the competition. Its partnerships with leading technology companies have helped it expand its market share and increase profitability.
In conclusion, analysts are bullish on Micron Technology Inc. and expect the stock to perform well in the coming months. While there may be some short-term volatility due to market conditions, the company’s strong financial performance and positive outlook suggest that it is well-positioned for long-term success. As always, investors should conduct their research and analysis before making investment decisions.
