Institutional trends show that major active investors have been dumping the stock in droves this year.
Micron Technology, Inc. (MU) is grabbing headlines amid analyst action this morning, helping push the stock downward by about 4.3% after market close in New York.
“Unfortunately, [Micron] is one more time where it’s a cycle,” Action Alerts Plus portfolio manager and TheStreet founder Jim Cramer said on the floor of the New York Stock Exchange this morning. “We were thinking because of Internet of Things it might be a secular trade, but it’s not.”
The stock is currently being pressured largely due to cyclical pressures related to supply and demand for its DRAM products.
Goldman Sachs (GS) in particular has been vocal about a downturn in the semiconductor market at large, downgrading a number of stocks based on their view of the current stage of the market cycle for the sector.
Data shows that larger scale active investors may have been ahead of the cycle that is causing Micron’s pronounced slide as of late, moving out of the stock even as many analysts maintained a rosy view.
According to FactSet data, active traders at institutional investors have been moving their money away from Micron since the start of the year and only picked up their pace in their exit in the second quarter.
In fact, in the past six months, only market-tracking indices have an increased net position on the stock.
Most notable among those exiting their positions are investment advisers and hedge funds, as well as investors generally pursuing a growth style.
So, while the analysts are helping punish the stock today, many active traders appear to have seen the signs far ahead of time.