|Bid||0.00 x 3100|
|Ask||0.00 x 28000|
|Day's Range||32.96 - 33.90|
|52 Week Range||28.39 - 64.66|
|Beta (3Y Monthly)||1.41|
|PE Ratio (TTM)||3.08|
|Earnings Date||Jun 25, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||46.63|
Micron (MU) can add the resumed trade conflict between the US and China as another external factor contributing to concern over its stock. The company has shown promise in digging itself out of an intense hole caused by industry-level events largely out of its control. The DRAM and NAND market collapsed, as demand decreased and inventory increased, which caused revenue to drop on lower average selling prices. While the company seems to be turning around, renewed US-China fears have caused shares to plummet 20% this month, as Micron is heavily tied and invested in China. Yet, analyst Eric Ross of Cascend Securities remains optimistic, as he rates Micron stock his Buy along with a $50 price target, which implies nearly 50% upside from current levels. (To watch Ross' track record, click here)More than half of Micron revenue comes from China — $17 billion out of a total $30 billion in 2018 — which is at risk as the US and China continue to slap tariffs on each other. Naturally, if a Chinese tariff were to directly impact Micron, revenue and sales would surely decrease. But Ross isn’t too concerned on the China threat, as many expect the trade war to be only temporary. The analyst is more concerned about recovery. He says that “NAND is further along recover than DRAM,” with inventories down, while DRAM still sees high inventory. Ross expects DRAM prices to decrease 20% in the second quarter, but sees good news in “inventories...being burnt off.” But while customer inventory is being sold — and therefore new sales are stalling — Ross expects it to “take a while” for the process to take shape. On NAND, the analyst says Micron is a “bit more protected,” given its high-end solutions and higher-margins. But DRAM accounts for nearly two-thirds of Micron revenue, which puts the focus on its recovery for overall company performance. As it will take time for both markets to fully recover — especially DRAM — Ross says Micron “represents a good value play” only for investors that are “willing to wait a year to see significant returns.” All in all, as Micron’s industry historically ebbs and flows, not much blame was put on the company over its recent stock fall. Similarly, as China fears rise, many will have trouble directly blaming Micron. But as fears dissipate and the industry returns to normalcy, analysts see the stock as a buy. TipRanks analysis of 25 analyst ratings shows a Moderate Buy rating on Micron stock, with 13 analysts recommending Buy, nine saying Hold and three Selling. The average price target among these analysts stand at $53.42, suggesting the stock can rise nearly 60% from current levels. Read more on MU: * Micron (MU) Stock Remains a Long-Term Buy, Says Analyst * J.P. Morgan Remains Bullish on Micron (MU) Stock Following Investor Meeting * MKM Continues to Recommend Micron (MU) Stock; Here’s Why More recent articles from Smarter Analyst: * Susquehanna Remains Bullish on Qualcomm (QCOM) Stock as the Roller Coaster Ride Continues * Trump's Trade War Hits U.S. Tech Companies from California to North Carolina * Trade Tensions Bring Down Micron (MU) Stock, But Cascend Is Still Bullish * Amazon (AMZN) Stock Poised for Continued Growth; Here’s Why
Let's look at what investors should expect from some of the more notable tech companies still left to report: Veeva Systems Inc. (VEEV), Workday, Inc. (WDAY), and Palo Alto Networks, Inc. (PANW).
Ned Davis Research points out that Qualcomm had 67% of its 2018 revenue come from China, while Micron saw 57.1% of its sales come from the second-largest economy in the world. Investors trying to get a gauge on the state of U.S.-China trade relations should look at shares of big chipmakers like Qualcomm, Micron Technology and Broadcom, according to Ned Davis Research. The firm points out that Qualcomm QCOM had 67% of its 2018 revenue come from China, while Micron MU saw 57.1% of its sales come from the second-largest economy in the world.
Micron Technology’s earnings will be negatively affected by the Huawei ban, according to Needham. The stock is down more than 4%.
After 26 years, billionaire hedge fund manager David Tepper is shutting down his Appaloosa LP to outside investors. The Wall Street Journal has reported Tepper plans to return outside clients’ money as ...
Chip stocks continued their broad selloff Thursday, as investors feared that the U.S.-China trade war will last longer than previously expected. The PHLX Semiconductor Index slumped 2.2% in morning trade, with 29 of 30 components losing ground, as the S&P 500 declined 1.2%. The SOX, which has now shed 15.5% this month, has dropped below the 200-day moving average, which is widely followed as a tracker of longer-term trends, and is now in danger of the first close below that technical indicator since Feb. 4. Among the SOX's biggest decliners, shares of Advanced Micro Devices Inc. slid 3.6%, Micron Technology Inc. dropped 3.5%, Nvidia Corp. gave up 3.5% and Qualcomm Inc. shed 3.4%. The lone gainer was Cypress Semiconductor Corp.'s stock, which tacked on 0.5%. Analyst Vivek Arya at Bank of America Merrill Lynch said chip companies appear to be expecting some trade resolution by the third quarter, soon after President Trump meets with China's president Xi Jinping on June 28 to June 29. "Overall, we believe the U.S. holds significant leverage in the current trade war (semis perspective), and can continue to exert even more pressure (restrict additional Chinese customers) which should lead to some resolution," Arya wrote in a note to clients.
(Bloomberg) -- Appaloosa Management founder David Tepper plans to return money to investors, although the timing hasn’t been finalized yet.
US District Judge Lucy Koh made a ruling on the FTC's Qualcomm case, saying they did violate US anti-trust laws. The cyclical nature of the semiconductor business makes it very sensitive to economic factors.
BOISE, Idaho, May 22, 2019 -- Micron Technology, Inc. (Nasdaq: MU) announced today that it will hold its fiscal third quarter earnings conference call on Tuesday, June 25, 2019.
Stocks of companies that supply parts and services to Apple Inc. fell Wednesday. Among notable small-cap stocks of companies supplying Apple, two rose while 25 fell. R.R. Donnelley & Sons shares rose 15 cents, or 5.
Shares of Micron Technology Inc. slumped 2.6% in afternoon trade Wednesday, after CFRA analyst Angelo Zino turned decidedly bearish on the memory chip maker, citing concerns over DRAM prices and the U.S. ban on doing business with China's Huawei Technologies. Zino cut his rating to strong sell from hold, and slashed his price target to $32, which is 7.8% below current levels, from $46. He believes Wall Street consensus earnings estimates need to see "significant downward revisions," as DRAM prices appear unlikely to stabilize in the near term given "excessive" customer inventories, and given that Huawei is a relatively large customer of Micron. "While we applaud [Micron's] ability to improve its balance sheet in recent years, we are growing more concerned about the magnitude of a potential cyclical recovery given the aforementioned issues," Zino wrote in a note to clients. The stock has shed 18.5% over the past three months, while the PHLX Semiconductor Index has slipped 1.2% and the S&P 500 has gained 2.4%.
Wall Street closed sharply higher on Tuesday after the U.S. government provided temporary relief to Huawei Technologies, allowing it to import U.S. inputs for the time being.
U.S. stock futures are trading lower premarket. But, honestly, what's new? Down gaps are becoming a daily occurrence, only occasionally interrupted by an up gap. The headline for today is "the summer chop continues."Against this backdrop, futures on the Dow Jones Industrial Average are down 0.31%, and S&P 500 futures are lower by 0.38%. Nasdaq-100 futures have shed 0.60%.In the options pits, overall volume levels fell off a cliff yesterday. Calls proved more popular than puts adding to 14.6 million contracts versus 11.8 million traded for puts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe ebb in put demand sent the CBOE single-session equity put/call volume skidding to 0.57 -- a two-week low. The 10-day moving average finally rolled over, falling to 0.71.Options trading for individual stocks was a veritable snooze fest. Many of the companies that landed on the top ten list didn't even exceed their average daily volumes. Today we'll breakdown Kohl's (NYSE:KSS), Bank of America (NYSE:BAC) and Micron Technology (NASDAQ:MU).Let's take a closer look: Kohl's (KSS)Kohl's reported earnings on Tuesday and investors were not pleased by the results. The selling frenzy took KSS stock down 12.3% amid colossal trading volumes. By day's end, 26 million shares had changed hands, marking the highest volume session since January 2017. * 10 Small-Cap Stocks That Look Like Bargains With the downdraft, shares of the retailer now sit at an eighteen-month low, submerged well beneath all major moving averages. The gap places KSS in no man's land from a price chart perspective, and that makes it challenging to build out a trade. Perhaps the best play is to wait for some type of relief rally, then deploy bear trades when it fails.For a more in-depth view on the earnings numbers, go here.On the options trading front, traders gobbled up put options. Activity ballooned to 522% of the average daily volume, with 76,111 total contracts traded; 62% of the trading came from put options alone.Ahead of the number, options were anticipating a gap of $4.25 or 6.7%, so the 12.3% doubled expectations. Volatility buyers via straddles or strangles won the day. Implied volatility fell throughout the day, landing at 36% or the 29th percentile of its one-year range. Bank of America (BAC)The price chart of BAC stock provides little excitement. Even when it's trending, it lacks the sexiness of a tech stock. Unfortunately, it doesn't even have that going for it. Outside of the quick jump that kicked-off the new year, BAC has been stuck in a choppy trading range between $28 and $30. At present, it's basing at the lower end of the range.If you're inclined to trade it, I suggest cash flow plays like covered calls and naked puts. Directional trades are too hard right now.On the options trading front, traders favored calls over puts. Total activity came in slightly below normal at 98% of the average daily volume, with 234,336 contracts traded. Calls claimed 34% of the sum.Implied volatility slipped to 24% placing it at the 25th percentile of its one-year range. Premiums are quickly becoming cheap here. The expected daily move is 44 cents or 1.5%. Micron (MU)The recent trade war flare-up has proved particularly painful for semiconductors. Since topping out last month, MU stock has fallen 20% -- entering a Wall Street defined bear market in the process. Yesterday's market rally lifted the ailing chip company from the depths, for a day at least. * 7 Safe Stocks to Buy for Anxious Investors Unfortunately, there's still plenty of overhead resistance and one up day does little to change the overall downtrend. More evidence is needed before the trend has turned higher.As far as options trading goes, puts were the hot ticket of the day. The total activity ended at 93% of the average daily volume, with 117,729 contracts traded. Puts accounted for 65% of the tally.Implied volatility dropped to 49% landing it at the 39th percentile of its one-year range. It's still high enough to make short premium strategies compelling. The expected daily move is now $1.11 or 3.1%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Wednesday's Vital Data: Kohl's, Bank of America and Micron Technology appeared first on InvestorPlace.
The S&P; 500 fell 9 points or 0.3% by 9:44 AM ET (13:44 GMT), while the Dow lost 90 points or 0.4% and tech-heavy Nasdaq composite was down 22 points or 0.3%.
Understanding the Impact of Trump’s Huawei Ban on US StocksHuawei banLast week, Donald Trump blacklisted Chinese telecom giant Huawei Technologies amid rising US-China trade tensions, restricting US companies’ transfer or supply of any
After a disastrous end to 2018, where the market was flooded with too much supply and low demand, the chips market seems to be on the up and up. Though this isn’t unexpected — the market is historically cyclical — this past downturn was worse than in recent memory. But with pricing seeming to bottom out, many are expecting Micron (MU) to regain lost ground. And Micron’s stock price seems to be seconding this. Shares climbed as much as 32% before the recent flare-up of tension between the US and China.Analyst Ambrish Srivastava of BMO isn’t too concerned with the geopolitical tension, as he maintains his Outperform rating and $50 price target on the stock. (To watch Srivastava's track record, click here) Srivastava says he sees Micron “as a structurally more profitable company in a structurally better DRAM industry, and [does not] see Micron burning through cash like in the cycles past.” The analyst believes the company is strong, while viewing the industry as in better shape than recent past. While industry-level downturns will negatively impact even the best-operated company, Srivastava believes Micron still has control at the wheel. He says, “there are several puts and takes to spend for clean room space, for back-end, and for node migration…[which] is all within the purview of what the company thinks about bit growth for the industry.” But while the analyst remains confident that Micron is digging itself out of trouble, he says inventory will “continue to rise in the near term which will be a headwind for working capital.” Higher inventory has plagued the industry over the past year, as lower demand has contributed to lower selling prices and revenue. Like many in the industry, the analyst believes Micron is a second-half investment. It will take time for inventory levels to normalize, which will help contribute to higher selling prices. Furthermore, as tensions between the US and China ease (as many expect), this will give confidence to downstream buyers, which may also help spur demand.All in all, while some argue Micron doesn’t have too much control over its own future because of industry trends, the argument could also be made that the company still has the power to control spending and inventory. That is the expectation moving forward, as Micron seems to have learned from mistakes of the recent downturn. As a result, and though the company still has some work left to do, analysts are bullish on its future.MU has a cautiously optimistic Moderate Buy consensus rating from the Street. This breaks down into 13 'buy', 9 'hold' and 3 'sell' ratings in the last three months. We can also see from TipRanks that the average analyst price target is $53.42 - 52% upside from the current share price. Read more on MU: * J.P. Morgan Remains Bullish on Micron Following Investor Meeting * MKM Continues to Recommend Micron (MU) Stock; Here’s Why * Micron (MU) Stock Is Heading Back Down to $32, Analyst Says More recent articles from Smarter Analyst: * Trade Tensions Bring Micron (MU) Stock Down, But Cascend Remains Bullish * Susquehanna Remains Bullish on Qualcomm (QCOM) Stock as the Roller Coaster Ride Continues * Trump's Trade War Hits U.S. Tech Companies from California to North Carolina * Trade Tensions Bring Down Micron (MU) Stock, But Cascend Is Still Bullish
Analysts at Morgan Stanley believe a re-acceleration of semiconductor shipments in the second half of the year is unlikely in this macro environment.
The U.S. government has imposed heavy restrictions on Huawei, accusing the world's largest telecommunications equipment maker of being vulnerable to involvement in activities contrary to national security or foreign policy interests. Huawei denies this, saying Washington has produced no evidence to back up its claims and that independent testing of its equipment shows no vulnerability to potential Chinese espionage. Huawei Vice-President Catherine Chen told newspaper Corriere della Sera in an interview published on Tuesday that the company had been working in Europe for 10 to 20 years, collaborating closely with telecoms firms on developing 5G networks.
Post U.S. blacklist, Google denied Huawei access to certain updates to the Android system. Here, we study the impact of the ban on some semiconductor ETFs with exposure to Huawei's key U.S. suppliers.