As of Thursday close, Microsoft Corporation’s (NASDAQ:MSFT) stock was down -$3.52, moving down -1.10 percent to $316.88. The average number of shares traded per day over the past five days has been 20,422,721 shares. 3 times new highs have been achieved over the past 5 days, with a -$6.05 fall in that time frame. In the last twenty days, the average volume was 28,131,275, while in the previous 50 days, it was 27,865,316.
Since last month, MSFT stock retreated -10.76%. Shares of the company fell to $316.21 on 08/17/23, the lowest level in the past month. A 52-week high of $366.78 was reached on 07/18/23 after having rallying from a 52-week low of $213.43. Since the beginning of this year, MSFT’s stock price has risen by 32.13% or $77.06, and marked a new high 33 times. However, the stock has declined by -13.60% since its 52-week high.
MSFT stock investors should be aware that Microsoft Corporation (MSFT) stock had its last reported insider trading activity 17 days ago on Aug 01. SMITH BRADFORD L, the Vice Chair and President of the company, disposed of 50,000 shares for $337.20 on Aug 01. It resulted in a $16,860,105 divestment by the insider. List Teri sold 1,250 shares at an average price of $334.77 on Jun 02. The insider now owns 874 shares following the transaction. On May 18, EVP, Chief Marketing Officer Capossela Christopher C sold 5,000 shares at $316.87 apiece. The transaction was valued at $1,584,354.
Valuation Metrics
Right now, Microsoft Corporation (MSFT) has a P/E ratio of about 32.72. The stock’s beta is 0.91. Besides these, the trailing price-to-sales (P/S) ratio of 11.18, the price-to-book (PB) ratio of 11.42, and the price-to-cash flow ratio of 39.82 may also be considered.
The latest dividend of $0.68 per share was paid out, remained unchanged from last year’s $0.68. On Tuesday September 20 2022, a $0.06 dividend increase was announced.
Financial Health
In the three months ended June 29, Microsoft Corporation’s quick ratio stood at 1.70, while its current ratio was 1.80, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.28, and the total debt-to-equity ratio was 0.31. On the profitability front, the trailing twelve-month gross margin is 68.90% percent. In the year ended June 29, EBITDA margin amounted to 48.31%, whereas operating margins totaled 41.80%. Based on annual data, MSFT earned $146.05 billion in gross profit and brought in $211.91 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 26.40%. Return on equity (ROE) for the past 12 months was 38.20%.
In Microsoft Corporation’s quarter-end financial report for June 29, it reported total debt of $41.99 billion against cash and short-term investments of $76.56 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. MSFT’s revenue rose 7.7% to $52.86 billion during the quarter, while net income inched up to $56.19 billion. While analysts expected Microsoft Corporation to report $2.55 quarterly earnings, the actual figure was $2.69 per share, beating the consensus estimate by 5.50%. During the quarter, the company generated $28.13 billion in EBITDA. The liabilities of Microsoft Corporation were 205.75 billion at the end of its most recent quarter ended June 29, and its total debt was $79.44 billion. The value of shareholders’ equity is $7.43 billion.
Technical Picture
This quick technical analysis looks at Microsoft Corporation’s (MSFT) price momentum. With a historical volatility rate of 11.81%, the RSI 9-day stood at 30.19% on 17 August.
With respect to its five-day moving average, the current Microsoft Corporation price is down by -1.87% percent or -$6.05. At present, MSFT shares trade -8.65% below its 20-day simple moving average and +12.94% percent above its 100-day simple moving average. However, the stock is currently trading approximately -5.03% below its SMA50 and +34.35% above its SMA200.
Stochastic coefficient K was 6.90% and Stochastic coefficient D was 10.43%, while ATR was 6.21. Given the Stochastic reading of 3.00% for the 14-day period, the RSI (14) reading has been calculated as 36.12%. As of today, the MACD Oscillator reading stands at -3.12, while the 14-day reading stands at -5.98.
Analyst Ratings
Raymond James reiterated its an Outperform rating on Microsoft Corporation (NASDAQ: MSFT) in a note to investors. The analysts firm has however raised their price target to $400, representing a possible 0.98% increase in the stock price. Microsoft Corporation (MSFT) has been rated Buy by analysts. According to 1 brokerage firm, MSFT is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 5 analysts rate Microsoft Corporation stock as buy, with 38 recommending it as overweight.
With a median target price of $400.00, the current consensus forecast for the stock is $232.00 – $440.00. Based on these forecasts, analysts predict Microsoft Corporation (MSFT) will achieve an average price target of $392.78.
