MU

Micron (MU) Pre-Earnings: Here’s What to Expect

Memory and storage solutions provider Micron (NASDAQ:MU) is set to release fiscal third-quarter 2024 earnings on June 26. Analysts are expecting earnings per share to come in at $0.48 versus a loss of $1.43 per share reported in the prior-year period. Meanwhile, analysts expect revenues of $6.66 billion, which equates to a 77% year-over-year increase, according to TipRanks’ data.

Micron is expected to benefit from the AI boom, favorable pricing, and growing demand for its advanced memory solutions.

Analysts Weigh In

Ahead of the company’s Q1 earnings release, several analysts remain bullish about MU and have reaffirmed their Buy ratings on the stock.

Among the bullish analysts, Ramond James analyst Srini Pajjuri increased the price target of MU to $160 from $130 per share. The analyst is optimistic about the company’s prospects and expects the company to deliver better-than-expected results.

Options Traders Anticipate a Large Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 13.72% move in either direction.

Is MU a Strong Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 17 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After an 114% rally in its share price over the past year, the average MU price target of $150.58 per share implies 7.9% upside potential.

However, insiders aren’t as confident. When looking at insider activity, there seems to be a lot of selling. In fact, insiders have sold over $22 million worth of shares in the past three months. Although managers sell for many reasons, it’s still worth noting that the Insider Confidence Signal for MU stock is Very Negative and below the sector average, as shown in the picture below:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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