Micron (MU) reports earnings tomorrow after market close, with the stock historically moving 6% but recently expected to move 12%. Patterns in momentum and short interest are critical in predicting post-earnings moves, with the latter showing a strong correlation to stock performance. Notably, when MU’s short interest increases, the stock has tended to rise. Using our short interest data and the BLACK App on the Bloomberg Terminal, we analyze Micron’s

Micron reports tomorrow after the close. Historically, the stock has moved 6% on earnings, but more recently, it is expected to move 12%.

The stock has shown a consistent pattern around earnings, where the momentum in the week leading up to earnings predicts the post-earnings movement. In MU’s case, the relationship is such that it is not random. Only twice in the past two years have these pre- and post-earnings movements been in opposite directions.

Another pattern is that changes in short interest predict stock movement after earnings. When short interest increases, the stock has historically risen.

We used this model last quarter to predict an upward move, and the stock rose as expected.

The bottom right corner shows the instances when either the stock or short interest was up, with the stock being down only once.

Micron’s short interest has doubled recently, as the stock lost half its value over the summer. Since then, short interest has remained stable.

Micron used to follow a reversal strategy, with investors shorting more as the stock went up and covering as it went down. However, recently there has been no clear pattern, with short interest remaining consistent in both rising and falling markets.

Micron’s earnings history provides actionable insights for navigating short interest and momentum-driven strategies. Contact us to explore how these patterns can optimize your investment decisions.

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