Bullish options flow was detected in MU stock in late trading on October 8, 2020.
Make sure to review this lesson on options trading so that you understand the chart above.
Some investors are positioning in MU stock in preparation for a Biden win. Joe Biden and most Democrats are in China’s back pocket and have been for years. It’s no coincidence that Obama and Biden did nothing about China’s military aggression in the South China sea nor the fact that China gutted the U.S. manufacturing sector when they were accepted into the WTO in large part because of Bill Clinton.
China would still be having free reign over the U.S. had it not been for Trump’s surprise win in 2016.
Some investors are buying MU stock now as Biden keeps the lead over Trump in polls. Investors believe that Biden will be much more friendly to China and will roll back the Huawei ban as well as tariffs against China, both of which will benefit MU stock.
On September 30, 2020, Needham analyst Rajvindra Gill lowered the firm’s price target on Micron to $65 from $70 but keeps a Buy rating on the shares. The analyst says the company’s Q4 was “solid”, but Huawei ban and weak enterprise demand contributed to the shortfall in its Q1 guidance. Gill adds that Micron’s near-term environment should be “choppy”, but he believes that several secular growth drivers – namely new CPU architectures driving higher server content, 5G smartphone growth, and a rebound in auto – will re-emerge in FY21.
Also on September 30, 2020, JPMorgan analyst Harlan Sur keeps an Overweight rating on Micron Technology with a $65 price target following last night’s results. From a stock perspective, following three rounds of estimate cuts since mid-August and underperformance in the stock year-to-date coupled with expectations of improved industry fundamentals, this as “good opportunity to take long positions” in Micron, Sur tells investors in a research note. He views the Q4 report as “solid” but notes the company’s Q1 revenue guidance was below consensus.
On September 30, 2020, Wedbush analyst Matt Bryson remains on the sidelines with Micron’s stock down post earnings, predominantly due to disappointing margin guidance. While the analyst remains more constructive on memory conditions in 2021, he continues to look for either a better entry point, or signs that conditions are turning to get more constructive on Micron. Bryson has a Neutral rating and a $55 price target on the shares.