Micron Technology (MU) Down In Pre-Market Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Micron Technology ( MU) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Micron Technology as such a stock due to the following factors:

  • MU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $586.1 million.
  • MU traded 29,509 shares today in the pre-market hours as of 7:47 AM.
  • MU is down 3.1% today from yesterday's close.

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More details on MU:

Micron Technology, Inc., together with its subsidiaries, provides semiconductor solutions worldwide. The company manufactures and markets dynamic random access memory (DRAM), NAND flash, and NOR flash memory products; and packaging solutions and semiconductor systems. MU has a PE ratio of 8. Currently there are 17 analysts that rate Micron Technology a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Micron Technology has been 22.5 million shares per day over the past 30 days. Micron Technology has a market cap of $27.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.42 and a short float of 6.2% with 2.73 days to cover. Shares are down 28.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Micron Technology as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • MU's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 1.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MU has a quick ratio of 1.76, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 49.11% is the gross profit margin for MICRON TECHNOLOGY INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.41% is above that of the industry average.

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