The Bear Note came as a result of reduced production from Seagate Technology
Micron Technology, Inc. (NASDAQ:MU) is down 2.6% at $62.02 at last check, after Morgan Stanley downgraded the “underweight” stock from “equal weight”. The bearish rating came on the heels of Seagate Technology’s (STX) missed fourth-quarter results and plans to cut production as customer orders lagged due to macroeconomic uncertainties and component shortages.
Analysts were bullish on Micron Technology Stock coming today, with 18 of the 23 covers rated “buy” or better. Additionally, the 12-month consensus target price of $78.09 represents a 27.2% premium to current levels, leaving MU exposed to further target price declines and/or downgrades.
Meanwhile, short-term options traders are already bearish. This is consistent with Schaeffer’s put-to-call open interest ratio (SOIR) of 1.19, which is above 84% of the past 12-month readings, suggesting that these traders have rarely been more biased.
Micron Technology stock was rebounding from a low of $51.40 on July 1, nearly two years before today’s bearish gap. The declining 50-day moving average, which has mostly behaved as resistance since March, capped yesterday’s rally, however. Year-to-date, MU is now down 31.7%