Should You Follow The Insiders And Buy Microsoft Corporation (MSFT)? - KYMA News

Thanks to a 106.56 sell/buy ratio, Microsoft Corporation (NASDAQ:MSFT) insider selling over the last three months picked up more than buying did. When insiders sell more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to decline soon. MSFT recorded 11 sales on the open market in the last three months. They sold nearly 298,573 shares while purchases amounted to 2,802 shares that period. Looking even further back to 12 months, corporate insiders offloaded 1,807,493 shares when buyers snapped up 1,637,415 shares. The 12-month’s totals signify about a 1.1-to-1 sell/buy ratio.

Capossela Christopher C parted with a total of 4 thousand shares of Microsoft Corporation (MSFT) at average share price of $105.5. This insider trade in the company took place on 12/10/2018. The total for the sales was set at $422 thousand. After this transaction, the EVP, Chief Marketing Officer account balance stood at 166.33 thousand shares. The stock grew 0.17 percent since that insider sale. On 12/06/2018, Capossela Christopher C, EVP, Chief Marketing Officer, sold 4 thousand shares at a price per share of $108. This removed 432 thousand shares from the insider’s fortune and the stock saw a -2.15 percent retreat in value since the news became public. This transaction left 173.93 thousand shares in the EVP, Chief Marketing Officer account.

On 12/03/2018, EVP, Chief Marketing Officer Capossela Christopher C performed a sale transaction worth $1.12 million. This sale at $111.77 each has eliminated 10 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -5.45 percent decrease since the transaction was reported. The insider now is left with 177.93 thousand shares remaining in the account. Hogan Kathleen T, who performs the EVP, Human Resources job, sold 36.5 thousand shares for $4.06 million. The disposal occurred on 11/08/2018 was priced at $111.28 per share. The share price plunged -5.03 percent since the reporting date. Hogan Kathleen T now left with a stake of 226.8 thousand MSFT stock worth $23.97 million after the insider selling.

The 12-month median price target for Microsoft Corporation (MSFT) assigned by the analysts stands at $125, which represents a return potential of 18.28 percent when compared to the closing price of the stock of $105.68 on Tuesday, January 22. The lowest price target for the stock is $75 — slightly more than -29.03 percent from MSFT’s current share price. The stock will probably climb 18.65 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $140price as 12-month high target. This represents a whopping 32.48 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 54.65 on daily chart, which may remain a cause for concern. If the price breaks below $103.64 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $106.9 mark may result into a pull-back move towards $108.12 level. The stock is currently hovering around the first support level of $104.66. Below this, the next support is placed in the zone of $103.64. Till the time, the MSFT stock trades above this level, bulls have nothing to fear.

Shares of Microsoft Corporation (MSFT) are trading at a P/E ratio of 28.06 times earnings reported for the past 12 months. The industry MSFT operates in has an average P/E of 34.45. Its P/E ratio went as low as 13.38X and as high as 29.89 over the 5-year span. Further, it is sporting a 7.06 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.46. 65.2 percent is the gross profit margin for Microsoft Corporation and operating margin sits at 32.4 percent. Along with this, the net profit margin is 16.4 percent.

On 22nd of January, Microsoft Corporation (NASDAQ:MSFT) shares ended lower after a volatile session. The shares dropped -2.03 points or -1.88 percent at $105.68 with a light trade volume of 32.035 million shares. After opening the session at $106.75, the shares went as high as $107.1 and as low as $104.86, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $811 billion and now has 7.67 billion shares outstanding. Microsoft Corporation (MSFT) stock has gained 1.92 percent of market value in 21 trading days.

In last reported earnings results, MSFT earned $1.14 per share, better than the $0.96, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $29.1B, better than the $27.9B analysts expected. Earnings are estimated to increase by 19.3 percent this year, 13.26 percent next year and continue to increase by 13.68 percent annually for the next 5 years. Investors will get their next glimpse of MSFT’s Q2 earnings on January 30. Analysts are forecasting revenue to climb 12.4 percent to $32.5B in the next fiscal quarter, while earnings are seen soaring by nearly 13.54 percent to $1.09 per share. History has shown that shares in Microsoft Corporation have gone up on 22 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.

MSFT stock has a trailing 3-year beta of 1.24, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.19 a share in the trailing twelve months. The stock’s value has surged 4.05 percent year to date (YTD) against a rise of 17.42 percent in 12 month’s time. The company’s shares still trade -9.04 percent away from its 1-year high of $116.18 and 26.06 percent up from 52-week low of $83.83. The average consensus rating on the company is 1.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

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