Micron Technology, Inc. (NASDAQ:MU) [Trend Analysis] has kept up with the changing appetite, stock collapsed around -3.11% in early session as it gain volume of 42.68 Million shares as compare to its average volume of 26675.82 shares and then traded at $17.44.
The firm’s DRAM fundamentals have turned up and Micron should profit in the near term. Micron Technology’s (NASDAQ:MU) peers can’t just simply flip a switch to meet demand in DRAM sector. This purchases Micron time to cash in on increasing prices. If assigned, the premium collected will ensure an attractive cost basis.
The investors of MU will be anticipating first tangible reaches into of a turnabout from Micron when the firm reports its fiscal Q4 results following market close on Oct. 4. The stock has soared about 60% since the starting of May, driven by the hope that prices for DRAM and NAND memory chips are starting to stabilize. Micron released a net loss in each of the past two quarters thanks to memory chip prices falling faster than the firm could cut costs.
Micron anticipated producing another net loss during the Q4, although firm has become increasingly optimistic that the environment is improving. In a presentation earlier this month, Micron stated that improving market conditions are predictable to continue into next year. The firm expects to achieve 20%-25% per-bit cost reductions for both DRAM and NAND in fiscal 2017, important progress that should boost profitability, barring an even larger drop in prices. The firm will need to produce guidance that predicts meaningful improvement during the first quarter of fiscal 2017 in order to satisfy those demands.
EPS Estimate Trends
The stock was assessed in terms of profitability as current quarter EPS estimate trends showed $-0.13 at current month while compared with $-0.18 in a month ago. The stock next year first quarter current estimate trend for EPS was for $0.08 and on annual basis FY 2016 estimate trends at current was for $-0.01 as compared to one month ago of $-0.06, and for next year per share earnings estimates have $0.72.
Volatility Measures And Technical Analysis
Moving toward the volatility measures, the price volatility of stock was 2.97% for a week and 3.59% for a month as well as price volatility’s Average True Range for 14 days was 0.62. The beta, which indicates risk in relegation to the market, remained 1.75. The firm past twelve months price to sales ratio was 1.46 and price to cash ratio remained 3.75. As far as the returns are concern, the return on equity was recorded as 3% and return on investment was 14.20%, while its return on asset stayed at 1.50%.
The liquidity measure in recent quarter results of company was recorded 2.20 as current ratio, on the other side the debt to equity ratio was 0.79. The Company has gross margin of 22.70% and profit margin was positive 2.90% in trailing twelve months.
Micron Technology, Inc. (NASDAQ:MU) is ahead its 52 week low with 87.33%and going down from its 52 week high price with -9.64%. The company’s shares performance for the last one month was 9.02% and 6.38% in the previous week. The stock price of firm is moving up from its 20 days moving average with 1.77% and remote isolated positively from 50 days moving average with 11.27%.