Tech investors will watch Micron Technology (NASDAQ: MU) intently when the company reports quarterly results on Tuesday, before the market closes. The average finbox.io model values MU stock at around $49 (16% upside) while Wall Street has an average $54.00 price target.
On November 23, the stock topped nearly $50 only to give up the gains in December. On December 12, Nanya Technology said it sold $22.4 million worth of shares. If markets value Micron at over $50, then the sale looks premature from a bullish investor. The company could believe Micron does not have much upside in the near-term. It could theoretically buy more stock later as it expects more downside ahead. But in practice, the shares come from the lockup period expiring for the remaining shares. The company obtained these shares from selling Inotera over a year ago.
Nanya also sold shares previously in the low $30s range.
Favorable market conditions
On a weekly and monthly average basis, both NAND prices and DRAM prices held steady. Trends have been in fact upward, according to
DRAMeXchange.
Takeaway
Expect high volatility after Micron publishes its earnings. Valuations are highly favorable enough that value investors would take interest in MU stock.
