Micron Technology Inc. (NASDAQ: MU) shares rose on Thursday Dec 22 with heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock, boosting the price target of stock.
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.
Micron Technology Inc. (NASDAQ: MU) had its price target increased by equities researchers at Cowen and Company from $23.00 to $26.00. With a rating of Outperform on the stock, Micron Technology Inc. has a 52-week high of $23.33. As a means of comparison, a number of other analysts have commented on the stock recently, and the company has secured a consensus one-year price target of $22.17, a decrease compared to the opening price of $22.91.
Shares of Micron Technology Inc. (NASDAQ: MU) opened at $22.91 on Tuesday trading between $22.77 and $23.33, and last traded at $23.30, which is a jump of $2.72 or 13.22% from the previous closing price.
Micron Technology Inc. (NASDAQ: MU) now has a market cap of 24.27B.
Micron Technology Inc. (NASDAQ: MU) Average Daily Trading Volume
31,219,658 shares traded hands yesterday, above the norm, out of a total float 981,763,000. Excessive volume accumulation by institutional investors may be in the near future as the combination of significant expansions in trading volume and price inflation can be indicative components.
As with all potential breakouts, investors look for volume to be at least 40%-50% greater than normal on the breakout to demonstrate that fund managers and other professional investors are jumping in.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors retain substantial teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you are considering.
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 identifying trends, moving averages allow investors 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.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% for the past 3 years.
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