NEW YORK (TheStreet) -- Micron Technology (MU) - Get Report stock is decreasing by 2.26% to $13.84 in mid-morning trading on Monday, after the data storage manufacturer announced the resignation of its president, effective February 1.
Mark Adams will resign from his post as president for personal health reasons. Adams has held the position since February 2012 and has been with the company since June 2006.
"Mark has been a stellar leader and contributor to Micron's growth and success during his time with the company," CEO Mark Durcan said in a statement. "We thank him for his dedication and service and wish him the very best with his recovery and into the future."
Shares of Micron Technology are also tumbling because of a sell-off in China that triggered a decline in markets across the world.
Chinese shares plunged 7% after manufacturing data in the country showed a reduction in factory activity in December, making it the 10th consecutive month of declines, Reuters reports.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate MICRON TECHNOLOGY INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels.
- MU, with its decline in revenue, underperformed when compared the industry average of 9.1%. Since the same quarter one year prior, revenues fell by 26.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for MICRON TECHNOLOGY INC is currently lower than what is desirable, coming in at 25.34%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 6.14% significantly trails the industry average.
- Net operating cash flow has decreased to $1,120.00 million or 29.64% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: MU