On the upside, Microsoft Corporation (NASDAQ:MSFT) will test short term resistance at around $103.61. On a downside, the share price is likely to find some support, which begins at $101.81. The failure to get near-term support could push it to $100.83. Its 50 day simple moving average (SMA 50) price is $105.27 and its 200-day simple moving average (SMA 200) price is $103.89. The company’s stock currently has a total float of 7.57B shares. Its weekly volatility is hovering around 1.84% and felt 3.35% volatility in price over a month.
MSFT stock has been range bound between the range of $101.64 and $101.64 during the whole day. The stock finished Friday at $102.8. The -0.77% downtrend forced its market value to reach at $795.26B. The price went up as high as $101.64 before retreating. Trading activity significantly weakened as the volume at ready counter decreased to 27,979,382 shares versus 46,531,980 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 34,975,164 shares. The stock is now 22.63% above against its bear-market low of $83.83 on February 09, 2018. It has retreated -13.02% since it’s 52-week high of $116.18 reached in October. Now the market price is up 17.06% on the year and up 1.21% YTD.
Separately, it has been reported that multiple insider activity took place at Microsoft Corporation (MSFT). EVP, Chief Marketing Officer Capossela Christopher C sold 4,000 shares for $166,331 in transaction occurred on 2018/12/10. After making this transaction, the EVP, Chief Marketing Officer owns a direct stake of 422,000 shares, worth $17,098,827, as per the last closing price. On 2018/12/06 Capossela Christopher C, EVP, Chief Marketing Officer at MSFT, dumped 4,000 shares at an average price of $108 per share. The selling total is valued at $17,880,107.
EVP, Chief Marketing Officer, Capossela Christopher C had divested 10,000 shares for $177,931 through a trade on 2018/12/03. Following this activity, the insider holds 1,117,700 shares worth $18,291,307 as of recent close. Wall Street’s most bullish Microsoft Corporation (NASDAQ:MSFT) analysts are predicting the share price to blow past $140 per share during the next 12 months. The current median share price forecast by them is $125, suggesting that the stock could increase 21.6% in that time frame. The average price target of $123.97 calls for a nearly 20.59% increase in the stock price.
It had seen a change in price target from analysts at BofA/Merrill, who reiterated the stock at Buy on October 25 but moved PT from $136 to $140. Analysts at BofA/Merrill, maintained the company shares at Buy on October 22 but switched target price from $134 to $135. Analysts at Wedbush, made their first call about the stock on October 19, recommending it is Outperform.
When looking at valuations, Microsoft Corporation (MSFT) has a cheap P/E of 24.55x as compared to industry average of 34.47x. Moreover, it trades for 20.44 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 9.18x price/book and 6.92x price/sales. Compared to others, Microsoft Corporation is in a different league with regards to profitability, having net margins of 16.4%. To put some perspective around this, the industry’s average net margin is 11.72%. MSFT’s ROE is 23.1%, which is also considerably better than the industry’s ROE of 15.46%. It’s also very liquid in the near term, with a current ratio of 2.9. The stock has a debt/capital of 0.94.
Shares of Microsoft Corporation (MSFT) have gained 0.5% since the company’s Sep-19 earnings report. Over the past 12 fiscal quarters, Microsoft Corporation (NASDAQ:MSFT) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. MSFT last reported earnings on October 24, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.14 per share, -93.79% change on the same period last year. That was better than consensus for $0.96. Revenue for the recent quarter stood at $29.08 billion, up 19% on last year and above the $27.9 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $30.23 billion to $32.83 billion, which should be compared with $28.72 billion generated last year. EPS is seen in a range of $1 to $1.33, against the $0.95 reported a year ago.