The stock of Microsoft Corporation (NASDAQ:MSFT) increased by $3.03 on Monday to finish at $324.04, up 0.94 percent. The last five days have seen an average of 21,601,180 shares of common stock traded. 33 times new highs were reached in the current year, with a gain of $84.22. The average number of shares traded over the last 20 days was 32,104,365, while the average volume over the last 50 days totaled 28,038,412.
MSFT stock dropped -6.14% since last month. On 08/11/23, the company’s shares reached a one-month low of $319.21. The stock touched a high of $366.78 on 07/18/23, after rallying from a low of $213.43 in 52 weeks. The price of MSFT stock has risen by 35.12% or $84.22 this year, reaching a new high 33 times. Still, the stock price is down -11.65% from the 52-week high.
Insider Transactions
MSFT stock investors should be aware that Microsoft Corporation (MSFT) stock had its last reported insider trading activity 14 days ago on Aug 01. On Aug 01, Vice Chair and President SMITH BRADFORD L sold 50,000 shares at $337.20 each. This transaction resulted in the insider making $16,860,105. On Jun 02, List Teri sold 1,250 shares at a price of US$334.77. After the transaction, the insider now owns 874 shares. EVP, Chief Marketing Officer Capossela Christopher C had earlier sold 5,000 shares on May 18 for $316.87 a share. The transaction was completed for $1,584,354.
Valuation Metrics
Microsoft Corporation (MSFT) has a trailing price-to-earnings (P/E) ratio of 33.46. Beta for the stock is 0.91. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 11.43, the price-to-book (PB) ratio of 11.68, and the price-to-cash flow ratio of 40.72.
Company paid $0.68 per share in dividends, remained unchanged from $0.68 last year.
Financial Health
For the three months ended June 29, Microsoft Corporation’s quick ratio was 1.70, while its current ratio was 1.80, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.28, and the total debt to equity ratio is 0.31. As far as profitability goes, gross margin for the trailing twelve months is 68.90% percent. Microsoft Corporation’s EBITDA margin for the year ended June 29 was 48.31%, whereas its operating margin stood at 41.80% for the same period. Based on annual data, it had gross profit of $146.05 billion and revenue of $211.91 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. MSFT’s return on assets (ROA) during the last 12 months has been 19.10%. There was a 26.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 38.20%.
Earnings Surprise
According to Microsoft Corporation’s quarterly financial report for the quarter that ended June 29, it had $41.99 billion in total debt versus $76.56 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $56.19 billion, while revenues rose by 7.7% to $52.86 billion. It was predicted that Microsoft Corporation’s quarterly earnings would be $2.69, but it ended up being $2.55, beating the consensus by 5.50%. EBITDA was $28.13 billion for the quarter. At the end of Microsoft Corporation’s most recent quarter ended June 29, its liabilities totaled 205.75 billion, while its total debt was $79.44 billion. Equity owned by shareholders amounts to $7.43 billion.
Technical Picture
Here’s a quick look at Microsoft Corporation’s (MSFT) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 39.10%, suggesting the stock is Neutral, with a 16.76% historical volatility rate.
The stochastic %K and %D were 10.19% and 7.18% respectively, while the average true range (ATR) was 6.78. Based on the 14-day stochastic reading of 18.97%, the RSI (14) reading is 41.82%. On the 9-day MACD Oscillator, the stock is at -2.71, and the 14-day reading is at -6.44.
Analyst Ratings
In a note to investors, Raymond James maintained its an Outperform rating on Microsoft Corporation (NASDAQ: MSFT). However, the firm raised their price target to $400, indicating a possible decrease of -1.26% in the stock price. Analysts have assigned Microsoft Corporation (MSFT) an Buy rating. MSFT is a stock that is recommended for selling by 1 brokerage firm, while 6 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 5 rates it overweight and 38 others recommend it as a buy.
What is MSFT’s price target for the next 12 months?
The current consensus forecast for the stock is between $232.00 and $440.00, with a median target price of $400.00. In analyzing these forecasts, the average price target given by analysts for Microsoft Corporation (MSFT) is $392.78.
