NEW YORK – Options trading in Micron Technology (NASDAQ:MU) picked up on Thursday, in the lead up to their quarterly conference call today. On Tuesday, traders acquired 49,237 put options according to reports from Analysts Ratings Network. The activity represented an increase of almost 120 percent compared to the average options volume of 22,397 per day.
The activity might be due to a number of bullish reports by analysts including Wedbush who reiterated their outperform rating for the company in a note to investors last week. Wedbush also increased their price target on the stock from $ 16 per share to $ 23 per share. Analysts at Sterne Agee raised their price target to $ 19 per share, upgrading their recommendation to buy; while analysts at TheStreet kept their hold rating on Micron in a note to investors early last week.
A look at major analysts following the company shows that only one has rated the stock as a sell while seventeen have issued a hold rating, and fifteen have issued a buy rating with one issuing a strong buy on the company’s stock. Shares in Micron have largely been unchanged since last week and were edging near its 52-week high in early trading on Thursday.
The company, which manufactures and markets semiconductor devices including NAND Flash, DRAM and NOR Flash memory, announced on Thursday morning that it had started shipping is 2 GB hybrid memory cube (HMC) engineering samples to customers. The HMC represents a dramatic step forward in memory technology, and these engineering samples are the world’s first HMC devices to be shared broadly with lead customers.
According to Brian Shirley, Vice President of the company’s DRAM Solutions Group, ‘system designers are looking for new memory system designs to support increased demand for bandwidth, density, and power efficiency. HMC represents the new standard in memory performance; it’s the breakthrough our customers have been waiting for.’
With the quarterly conference call expected for later today, the expectation is that the company will post a profit of $ 0.23 per share. This is compared to a $ 0.23 loss during the same quarter last period. Even though the company has a spotty record hit expectations, many analysts are optimistic about the company’s profitability due to better pricing and increased production efficiency.
Furthermore, the company has experienced increased demand for smart devices, even though personal computer demand has been falling, based on this it is not difficult to imagine the company reporting positive results during today’s conference call.