Is It to Buy $MU now?

When you saw $MU jumped 10% today after two Wall Street analysts upgrade, you may think maybe this stock finally has bottomed. After all it is a cheap stock and many value investors including value guru David Einhorn had bet with big money on it.

Whatever you are thinking, the first step is probably understand what the analysts who said in their notes of upgrade. If you agree with their analysis, then the next good step is to see who among smart money still have a stake in it.

$MU made 52 week low at ~$9.5, also a 3 year low in May. It rebounded sharply 45%+ since May low. It was a great win for whoever caught the low. Will this bounce from the bottom last?

HedgeMind offers investors $MU infographic to gain a quick view of what hedge funds have done and whether they are still in it to win it.

$MU Infographic

$MU still has 81.75 ownership held by institutional investors, but less than 1% by HM Hedge Funds universe. Its hedge fund sentiment at end of Q1, 2016 reached an extreme bearish level, at 74% which is the lowest since HM created this indicator. Another bearish sign is % of hedge funds owning $MU also declined to the lowest level, just around 3%.

Now who the long term investors are still in this stock?

David Einhorn, a deep value hedge fund manager, had been the biggest believer of $MU for a long time, since 2013 Q3 when he initiated 23 million shares of Micron Tech (infographic 2). He bailed out totally in 2015 Q4. David Cohen of Iridian Asset Management then became top holder in 2015 Q4 among hedge funds. He decided to cut loss too in the first quarter, 2016. David Einhorn and David Cohen, both long term investors, are out. Now you see quantitative trading hedge fund managers are at the top of holder list.

To buy or not to buy, now you have more info to chew on.

David Einhorn's $MU holding history