Micron Technology, Inc. (NASDAQ:MU) CFO Sheds His Holdings
Denver, CO, 08/15/2013 (Avauncer.com) – Shares of Micron Technology, Inc. (NASDAQ:MU) were down 0.80% to close at $14.85. Despite this, shares remained at the higher end of its 52-week price range of $5.16 to $15.07. However, shares remained moderately traded with 36.12 million shares being traded, up from the average volume of 45.17 million shares.
The company has seen unusual trading in its option market, with a surge of 147% in its call options. A call onion gives the holder the right to buy the shares in future at prices locked today. Call holders gain money if shares of the company are expected to rise in future. Therefore, this gives us an insight into the company and its future profitability, which is perceived by the market in good spirits. The company can thus be said to have long term growth prospect.
However, contrary to market sentiments, the CFO of the company sold 10,400 shares in an insider trading. An insider trading should be watched closely as this might give a hint to an outsider of what might be going on within the company, which is privy only to persons working there and having access to inside information.
The company has been in great spirits, also after reporting a better than expected quarter earnings report. Also, various hedge funds have shown confidence in the company by holding stakes in their own portfolios of MU stocks.
It is seen that despite posting a positive quarter earnings report and hedge funds taking interest in company’s stock, there has been an insider trading contrary to general belief. However, this should not be seen to communicate anything contrary to market sentiments, which has been positive, especially after its acquisition of Elpida, with great potential in DRAM business. Also, with Apple Inc. (NASDAQ:AAPL) as its biggest buyer, the company has monopolistic edge to grow along the mobile and tab making giant.