As of Wednesday close, Microsoft Corporation’s (NASDAQ:MSFT) stock was down -$7.88, moving down -2.40 percent to $320.77. The average number of shares traded per day over the past five days has been 22,546,359 shares. 1 time new highs have been achieved over the past 5 days, with a -$15.29 fall in that time frame. In the last twenty days, the average volume was 19,712,154, while in the previous 50 days, it was 25,188,566.
Since last month, MSFT stock retreated -0.34%. Shares of the company fell to $317.04 on 08/21/23, 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 33.75% or $80.95, and marked a new high 33 times. However, the stock has declined by -12.54% since its 52-week high.
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MSFT stock investors should be aware that Microsoft Corporation (MSFT) stock had its last reported insider trading activity 20 days ago on Sep 01. Nadella Satya, the Chief Executive Officer of the company, disposed of 38,234 shares for $328.43 on Sep 01. It resulted in a $12,557,161 divestment by the insider. Hogan Kathleen T sold 26,815 shares at an average price of $327.37 on Sep 01. The insider now owns 198,373 shares following the transaction. On Aug 01, Vice Chair and President SMITH BRADFORD L sold 50,000 shares at $337.20 apiece. The transaction was valued at $16,860,105.
Valuation Metrics
Right now, Microsoft Corporation (MSFT) has a P/E ratio of about 33.12. The stock’s beta is 0.90. Besides these, the trailing price-to-sales (P/S) ratio of 11.54, the price-to-book (PB) ratio of 11.56, and the price-to-cash flow ratio of 41.10 may also be considered.
The latest dividend of $0.75 per share was paid out, which is 10.29% more than last year’s $0.68.
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. 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 23.62%, the RSI 9-day stood at 35.21% on 20 September.
With respect to its five-day moving average, the current Microsoft Corporation price is down by -4.55% percent or -$15.29. At present, MSFT shares trade -0.52% below its 20-day simple moving average and +5.23% percent above its 100-day simple moving average. However, the stock is currently trading approximately -3.52% below its SMA50 and +25.95% above its SMA200.
Stochastic coefficient K was 21.48% and Stochastic coefficient D was 38.27%, while ATR was 6.02. Given the Stochastic reading of 1.28% for the 14-day period, the RSI (14) reading has been calculated as 40.59%. As of today, the MACD Oscillator reading stands at -5.78, while the 14-day reading stands at -5.28.
Analyst Ratings
HSBC Securities launched its rating on Microsoft Corporation (NASDAQ: MSFT) to a Hold in a note to investors on September 15, 2023. Microsoft Corporation (MSFT) has been rated Buy by analysts. According to 1 brokerage firm, MSFT is a sell, and 7 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 39 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 $391.76.
