Micron Technology Inc. (NASDAQ: MU) shares rose in value Thursday Dec 22 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened mostly flat on Thursday. The Dow Jones Industrial Average DJIA, -0.15% fell 15 points to 19,928, a drop of less than 0.1%. The S&P 500 SPX, -0.22% fell 1 point, or 0.05%, to 2,264. The Nasdaq Composite Index COMP, -0.23% fell 1 point to 5,470.21, essentially unchanged on the day.
Analysts at Needham & Company LLC upgraded shares of Micron Technology Inc. (NASDAQ: MU) from Underperform to Buy today. The company currently has a rating of Buy on the stock. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has earned a consensus one-year price target of $22.17, lower than the opening price of $22.91, a difference of 9.52 percent. Micron Technology Inc. stock has a 52-week high of $23.33. Typically, after analysts publish an upgrade report on a stock, they will subsequently issue sporadic revisions, such as a price target change.
Micron Technology Inc. (NASDAQ: MU) shares last traded at $23.30, an increase of $2.72 or 13.22% compared to the previous closing price. Opening at $22.91, they fluctuated from $22.77 and $23.33 throughout the day.
Micron Technology Inc. (NASDAQ: MU) currently has a market cap of 24.27B.
Micron Technology Inc. (NASDAQ: MU) Average Daily Trading Volume
31,219,658 shares crossed the trading desk yesterday, higher than normal, out of a total float 981,763,000. Substantial gains in trading volume and price appreciation together could indicate excessive volume aggregation by institutional investors.
However, just a day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Micron Technology Inc. (NASDAQ: MU) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Micron Technology Inc. (NASDAQ: MU) now has a 50-day MA of $19.03 and 200-day MA of $16.17. It has traded in a 52-week range between $9.31 – 23.33 and today’s last price is 0.11%% lower than the 52 week high of $23.33.
Earnings growth is a critical factor to consider when buying stocks and investors seek companies that have grown their earnings by at least 25% over a 3 year period.
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