Micron Technology, Inc. (NASDAQ: MU) shares rose in value on Wednesday January 18 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, in early trade today, the S&P 500 SPX, +0.00% was off 2 points, or 0.1%, at 2,265, shortly after open. The Nasdaq Composite COMP, +0.20% was flat at 5,537. The Dow Jones Industrial Average DJIA, -0.20% slipped 54 points or 0.3%, to 19,770.
Analysts at Zacks Investment Research upgraded shares of Micron Technology, Inc. (NASDAQ: MU) from Hold to Buy today. The company currently has a rating of Buy on the shares. The one-year price target of $26.58 is higher than the opening price of $21.68, resulting a number of other analysts to report on the company in recent days. Looking back over the last 52 weeks, Micron Technology, Inc. stock has a high of $23.64. Typically, after analysts issue an upgrade report on a stock, they will later issue other revisions, such as a price target change.
Shares of Micron Technology, Inc. (NASDAQ: MU) opened at $21.68 yesterday and traded in a range between, $21.53 and $22.17, and last traded at $22.14, an increase of $0.40 over the previous closing price.
Micron Technology, Inc. (NASDAQ: MU) now has a market cap of 24.41B.
Micron Technology, Inc. (NASDAQ: MU) Average Daily Trading Volume
The stock’s average daily volume is 25,515,600 shares out of a total float 1,040,578,000 and some 4,063,014 shares traded hands yesterday, 78 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
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 tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Micron Technology, Inc. (NASDAQ: MU) have ranged from $9.31 – 23.64, and the stock now has a 50-day MA of $21.13 and 200-day MA of $17.43. Today’s last price is 6.35%% under the 52 week high of $23.64.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have grown their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.