Analyst Anticipates Strong Earnings from Micron Technology

MU will report earnings Wednesday

Barclays lifted its price target on Micron Technology Inc (NASDAQ:MU) stock to $120 from $95 ahead of this week’s earnings report, anticipating “another strong beat and raise” from the company. MU initially jumped over 4% after the bull note today, though has since pared gains — up 0.9% at $94.11 at last look. 

Micron Technology will report earnings after the close on Wednesday, Mar. 20. The options pits are pricing in a 16.2% swing after the event, regardless of direction, which is much larger than the 4.3% move the stock has averaged over the past two years. Of those last eight reports, MU finished its next-day session positive just three times, one of which was a  8.6% rise this past December.

Call traders have been targeting the semiconductor stock the last 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MU’s 50-day call/put volume ratio of 3.14 ranks higher than 98% of readings from the past year. 

 

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