Micron Technology, Inc. (MU) Down Sharply After-Hours Following Earnings Miss: Golden Opportunity?

What have hedge funds been doing with Micron Technology, Inc. (NASDAQ:MU)?

At the end of the first quarter, a total of 100 of the hedge funds tracked by Insider Monkey were bullish in this stock, a reduction of 12% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.

When looking at the hedgies followed by Insider Monkey, David Einhorn‘s Greenlight Capital had the biggest position in Micron Technology, Inc. (NASDAQ:MU), worth close to $910.2 million, accounting for 11.9% of its total 13F portfolio. On Greenlight Capital’s heels is Viking Global, managed by Andreas Halvorsen, which held an $845 million position; 3.3% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish comprise Seth Klarman’s Baupost Group, Eric Bannasch‘sCadian Capital, and Daniel S. Och’s OZ Management.

Due to the fact that Micron Technology, Inc. (NASDAQ:MU) has faced a declination in interest from the entirety of the hedge funds we track, logic holds that there is a section of fund managers who sold off their full holdings heading into the second quarter. At the top of the heap is Rob Citrone’s Discovery Capital Management, which dropped the largest investment of the 700 funds followed by Insider Monkey, worth an estimated $233.4 million in stock, while Zach Schreiber of Point State Capital was right behind that move, as his fund said goodbye to about $232.3 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by 13 funds heading into Q2.

Micron Technology, Inc. (NYSE:MU) has under-performed in 2015, with a 31.39% decline in its shares even before the after-hours dip, along with negative investor sentiment. We don’t recommend a buy at this time, though we do concede that the stock is reaching a compelling buy-low price.

Disclosure: None