Microsoft Corporation (MSFT): What Technical Indicators Show

Microsoft Corporation (NASDAQ:MSFT) saw an upside of 2.55% to close Friday at $289.10 after adding $7.18 on the day. The 5-day average trading volume is 31,108,262 shares of the company’s common stock. It has gained $296.47 in the past week and touched a new high 1 time within the past 5 days. An average of 24,887,115 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 22,531,393.

MSFT’s 1-month performance is -4.22% or -$12.73 on its low of $281.29 reached on 10/01/21. The company’s shares have touched a 52-week low of $199.62 and high of $305.84, with the stock’s rally to the 52-week high happening on 08/20/21. YTD, MSFT has achieved 29.98% or $66.68 and has reached a new high 44 times. However, the current price is down -5.47%% from the 52-week high price.


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Insider Transactions

On Sep 10, 24 days have gone by since the last insider trading activity for Microsoft Corporation (MSFT). Hogan Kathleen T (EVP, Human Resources) most recently sold 20,000 shares at $298.68 per share on Sep 10. This transaction cost the insider $5,973,540. EVP, Chief Marketing Officer, Capossela Christopher C, sold 10,000 shares at a price of $298.82 on Sep 10. Then, on Sep 01, Chief Executive Officer Nadella Satya sold 75,573 shares at a price of $303.28 per share. This transaction amounted to $22,920,037.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 62.43 and a low of 22.35. MSFT stock has a beta of 0.80. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 12.60 while the price-to-book (PB) in the most recent quarter is 15.32, with the price to cash flow ratio at 53.50.

Microsoft Corporation pays an annual dividend of $2.24 per share. Its dividend yield is 0.77% and the payout ratio is 27.00%. MSFT paid $0.62 a share compared with prior rate of $0.56, up 9.68% from last year’s. The company has boosted its dividend for the last 17 consecutive years with the latest dividend increase of $0.06 reported on Tuesday September 14 2021. Measured over the last 3 years, the Dividend has been growing by 31.45% yearly.

It is projected that Microsoft Corporation’s next ex-dividend date will be on 17-Nov-2021. MSFT is expected to distribute $0.62 as its next dividend.

Microsoft Corporation’s quick ratio for the period ended June 29 was 2.10, with the current ratio over the same period at 2.10 meaning that MSFT stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.44, while the total debt to equity was 0.50. In terms of profitability, the gross margin trailing 12 months is 68.90%The trailing 12-month EBITDA margin is 48.08% while for the period ending June 29; Microsoft Corporation’s operating margin was 41.60%. The firm’s gross profit as reported stood at $115.86 billion against revenue of $168.09 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Microsoft Corporation’s cash and short-term investments amounted to $116.11 billion against total debt of $82.28 billion. Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected MSFT to announce $1.92 per share in earnings in its latest quarter, but it posted $2.17, representing a 13.00% surprise. EBITDA for the quarter stood at more than $22.44 billion. MSFT stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 191.79 billion, with total debt at $82.28 billion. Shareholders hold equity totaling $7.51 billion

Technical Picture

Let’s look briefly at Microsoft Corporation (MSFT) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 01 October was 42.42% to suggest the stock is trending Neutral, with historical volatility in this time period at 26.38%.

The stock’s 5-day moving average is $286.54, reflecting a -3.42% or -$10.25 change from its current price. MSFT is currently trading -4.00% above its 20-day SMA, +17.41% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +1.03% and +35.01% respectively.

Stochastic %K and %D was 13.10% and 9.77% and the average true range (ATR) pointed at 5.79. The RSI (14) points at 43.66%, while the 14-day stochastic is at 32.50% with the period’s ATR at 5.36. The stock’s 9-day MACD Oscillator is pointing at -6.66 and -9.92 on the 14-day charts.

Analyst Ratings

Analysts offering their rating for MSFT stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate MSFT as a “sell,”, while 2 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 3 rates the stock as overweight while 32 have offered a “buy” rating.

What is MSFT’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $280.00 and a high of $411.00, with their median price target at $330.50. Looking at these predictions, the average price target given by analysts is for Microsoft Corporation (MSFT) stock is $333.49.

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