Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Micron Technology, Inc. New York, September 18, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Micron Technology, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
In a market made up of stocks, Micron Technology (NASDAQ:MU) is one known to march to the beat of its own drummer. But in today's market, is now a better time to buy, sell or hold off on MU stock? Let's explore what's happening off and on the price chart, then offer a risk-adjusted determination aligned with those findings.Source: madamF / Shutterstock.com Despite a punishing novel coronavirus detour earlier this year, 2020 has turned into a standout year for the Nasdaq Composite index. On the back of influential and dazzling rallies in Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and others, the index has soared to new highs and returned more than 23%.No doubt investors can thank the Nasdaq's strong gains to both a loose-handed, generous Fed and technologies that we are seemingly unable to live without. Yet, the combination hasn't exactly helped DRAM and NAND memory giant Micron.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe MU stock price is down about 7.5% year-to-date. It could be worse though. And it was, by a couple handful of percentage points until Goldman Sachs marched in this week bullishly banging the drum for the shares. So, what's all the noise about and why are investors more than idly listening to the broker?Goldman's Toshiya Hari raised Micron from neutral to buy this week on indications of supply discipline and price stabilization in the company's memory markets. Under-performance in MU's share price also played a factor. As well, the firm sees a favorable shift in supply/demand balance helped by a larger mix of 5G smartphones entering the market in 2021. MU Stock Monthly Price Chart Click to EnlargeSource: Source: Charts by TradingView If there was a weak spot in the upgrade, it may have been the failure by Goldman to also boost its price target on the shares. The broker opted to maintain its $58 price on Micron. Appreciatively, based on what we're seeing on the price chart of MU stock the price estimate looks fair until proven differently.Technically -- and for the better part of two years -- Micron's price action has taken on the spirit of a loose triangular consolidation pattern. On the illustrated monthly chart I've taken the liberty of depicting two triangles based on extremes, as well as opening/closing price levels. * 20 Election Stocks to Buy if Joe Biden Wins in 2020 Currently, a narrowing of the still-volatile price action has Micron shares positioned above the triangle's apex near $45. That's modestly bullish. However, shares still face the tighter pattern's overhead resistance line near $52.50. The looser formation's resistance comes in around Goldman's $58 price target. Good Reasons for Remaining CautiousTo be sure, shares could have their work still cut out for them despite this year's relative and absolute price weakness. What's more, with today's unproductive stochastics setup, MU investors may be looking at another pivot low forming in the wider triangle. That could result in Micron trading down in the mid-to-high $30's before pattern resistance is fully challenged and hopefully overcome.If what's been described sounds like a warning to back off from buying Micron stock, it is. And obviously there are a couple good reasons for remaining cautious. But charts are also fluid. And conditions can be very quick to change in a name like MU. While Micron has been a dog in 2020, shares do have a history of working volatility lopsidedly to the advantage of bulls.Bottom-line, for technical-oriented traders I'd suggest monitoring Micron shares for the time being. If a breakout above $52.50 occurs along with a more supportive-looking stochastics, a purchase of the stock or a bull call spread on the expectation of a fast rally towards $58 to possibly 2020's high near $61.50, makes sense.As for investors wishing to bypass the shortcomings of charts and use Micron's erratic price volatility consistently to their advantage over time, a dynamic collar on MU stock is a favored way to participate on a risk-adjusted basis.Stocks owned: On the date of publication, Chris Tyler holds, directly or indirectly, positions in Micron (MU) and MU derivatives.Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100% the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post How to Play Goldman Sachs' Big Call This Week on Micron Technology Stock appeared first on InvestorPlace.
It has been a tough year for Micron (MU), as the chipmaker has been heavily affected by adverse macro conditions. Yet, one analyst thinks the current share price could offer new investors an opportunity to get into MU on the cheap. 5-star Rosenblatt analyst Hans Mosesmann rates MU shares a Buy along with a $100 price target. This figure implies a 96% upside from current levels. (To watch Mosesmann’s track record, click here)Mosesmann has longed banged the drum in Micron’s favor and looking ahead to the company’s August quarter (FQ4) earnings on September 29, Mosesmann implores investors snap up shares of the underperforming large-cap in anticipation of strong upside.So, what’s behind Mosesmann’s confidence? The analyst explained, “We continue to like Micron on the long-term prospects of 5G smartphones, AI and machine learning applications, and a memory upcycle (2021 expected), where Micron is in one of its best positions to capture this upside.”Ahead of the print, Mosesmann forecasts sales of $6 billion, a quarter-over-quarter increase of 10.3%, and non-GAAP EPS to hit $1.05, in-line with Micron's guidance.The analyst counts “continued strength in data center (cloud and memory) from work-from-home related dynamics, new gaming consoles, and the start of a recovery in the smartphone market (5G) offset by weakness in enterprise” as the quarter’s main drivers.However, Mosesmann’s confidence is tempered by lower expectations for the following quarter. The analyst sees a “downward bias versus current consensus revenue estimates of down high single-digits q/q,” believing the Street hasn’t fully taken into account the fact the company won’t be able to make any shipments to Huawei \- a client thought to make up almost 10% of Micron’s revenue - after September 14, due to the commencement of a U.S. ban on the Chinese telecom giant.Nevertheless, Mosesmann counters the reduced outlook with the view that “overall bit demand/supply dynamics remain unchanged for a memory upcycle in 2021 driven by accelerated compute shifts, 5G, and WFH dynamics.”While not quite as bullish, most of Mosesmann’s colleagues agree with his assessment. MU's Moderate Buy consensus rating is based on 17 Buys, 6 Holds and 1 Sell. With a $62.43 average price target, the analysts expect upside of 22.5% over the coming months. (See MU stock analysis on TipRanks)To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.