
Microsoft Corporation (NASDAQ:MSFT) reaches $832B market cap as shares jumped 0.15% in recent session. It closed at $108.66, after slipping as low as $108.21 through the day. The shares were pushed to an intraday high Friday at $110.86. Trading activity significantly improved as the volume at ready counter increased to 31,673,719 shares versus 30,734,080 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 28,777,865 shares. The stock is now 40.48% above against its bear-market low of $77.35 on October 25, 2017. It has retreated -6.92% since it’s 52-week high of $116.18 reached in October. Now the market price is up 39.47% on the year and up 27.03% YTD.
MSFT’s 50 day simple moving average (SMA 50) price is $110.73 and its 200-day simple moving average (SMA 200) price is $100.07. The company’s stock currently has a total float of 7.56B shares. Its weekly volatility is hovering around 2.33% and felt 2.18% volatility in price over a month. On the upside, the share price will test short term resistance at around $110.28. On a downside, the stock is likely to find some support, which begins at $107.63. The failure to get near-term support could push it to $106.59.
The insider holding in Microsoft Corporation (MSFT) stood at 0.1% while institutions hold 74.6%. Capital World Investors is the largest single holder among mutual funds with ownership of over 252.14M MSFT shares as of June 30, with a market value of approx. $24.86B as of today. The second largest holder, Capital Research Global Investors, with 103.33M shares which equates to $10.19B worth of the stock. At third is Northern Trust Corp, which stood pat with 93.91M shares, a 1.11% position in Microsoft Corporation, worth $9.26B.
Separately, it has been reported that multiple insider activity took place at Microsoft Corporation (MSFT). EVP, Chief Marketing Officer Capossela Christopher C sold 59,162 shares for $167,233 in transaction occurred on 2018/09/10. After making this transaction, the EVP, Chief Marketing Officer owns a direct stake of 6,431,501 shares, worth $18,171,538, as per the last closing price. On 2018/09/04 Hogan Kathleen T, EVP, Human Resources at MSFT, dumped 40,000 shares at an average price of $111.31 per share. The selling total is valued at $26,653,211.
EVP, CFO, Hood Amy had divested 118,000 shares for $441,931 through a trade on 2018/09/04. Following this activity, the insider holds 13,086,200 shares worth $48,020,222 as of recent close.Wall Street’s most bullish Microsoft Corporation (NASDAQ:MSFT) analysts are predicting the share price to blow past $160 per share during the next 12 months. The current median share price forecast by them is $125, suggesting that the stock could increase 15.04% in that time frame. The average price target of $125.1 calls for a nearly 15.13% increase in the stock price.
It had seen a new analyst call from Wedbush, which initiated the stock at Outperform on October 19. Analysts at Macquarie, shed their negative views on October 12 by lifting it fromNeutral to Outperform. Brokerage firm Griffin Securities, looks cautious as they stick to prior recommendation of Buy, in a call on July 20. However, they did change the target price from $119 to $124. BMO Capital Markets, reiterated their call for Outperform, on July 20. On the other hand, they had set new target price to $125 versus $109.
When looking at valuations, Microsoft Corporation (MSFT) has a cheap P/E of 27.9x as compared to industry average of 33.99x. Moreover, it trades for 21.97 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 10.09x price/book and 7.54x price/sales. Compared to others, Microsoft Corporation is in a different league with regards to profitability, having net margins of 15%. To put some perspective around this, the industry’s average net margin is 12.43%. MSFT’s ROE is 20.1%, which is also considerably better than the industry’s ROE of 12.06%. It’s also very liquid in the near term, with a current ratio of 2.9. The stock has a debt/capital of 0.97.
Shares of Microsoft Corporation (MSFT) have dropped -19.6% since the company’s Jun-18 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 July 19, 2018 when it released Jun-18 results that exceeded expectations. The company raked in $1.13 per share, -77.49% change on the same period last year. That was better than consensus for $1.08. Revenue for the recent quarter stood at $30.09 billion, up 22% on last year and above the $29.21 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $28.84 billion to $29.51 billion, which should be compared with $0 generated last year.
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