Microsoft Corporation (MSFT) Stock: Is This Technology Stock Worth Your Attention? - iWatch Markets

Microsoft Corporation (MSFT) is falling in the market in today’s trading session. The stock, focused in the technology sector, is currently priced at $117.94 after a move down of 0.86% so far today. As it relates to tech stocks, there are quite a few aspects that have the ability to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines associated with MSFT:

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Nonetheless, any time investors are making a decision to invest, prospective investors should look at far more than just news, especially in the ever changing technology sector. Here’s what’s going on with Microsoft Corporation.

How MSFT Has Been Trending

Although a decline in a single session, like the fall that we’re seeing from Microsoft Corporation may make some investors fearful, a single session fall by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It is always important to take a look at trends further out than a single session. When it comes to MSFT, here are the trends that investors have experienced:

Past 7 Days – In the past week, MSFT has seen a price change in the amount of 0.76%.
Monthly – The ROI from Microsoft Corporation throughout the past month works out to 5.28%.
Quarterly – In the past 3 months, the company has generated a return on investment that works out to 16.56%
Past Six Months – Throughout the past six months, we’ve seen a performance that works out to 3.47% from the company.
YTD – Since the open of this year MSFT has generated a return of 16.12%.
Full Year – Lastly, in the last year, we’ve seen movement that works out to 31.94% out of MSFT. In this period, the stock has traded at a high price of -2.38% and a low price of 34.77%.

Rations That Traders Should Think About

Looking at various ratios having to do with a stock generally gives traders a look of just how risky and/or rewarding a pick may be. Below are some of the most important ratios to look at when looking at MSFT.

Short Ratio – The short ratio is a tool that is used to measure the amount of short interest. The higher this short ratio, the more investors are expecting that the stock is headed for declines. Across the sector, strong tech stocks tend to come with a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the sector. Nonetheless, in relation to Microsoft Corporation, the stock’s short ratio comes to 1.41.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Basically, they measure the company’s abilities to cover its debts when they come due using quick assets or current assets. In the tech sector, companies rely on the continuation of support from investors as they work to bring new technologies to market, the current and quick ratios can be upsetting. Nonetheless, some gems in the tech industry do have great quick and current ratios. As far as MSFT, the quick and current ratios add up to 3.10 and 3.10 respectively.

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets owned by the company. as it relates to Microsoft Corporation, that ratio equates to 11.98.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of shares. In this case, the cash to share value ratio comes to 16.20.

What Institutions And Insiders Think Of Microsoft Corporation

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in MSFT, here’s what we’re seeing:

Institutions own 74.70% of the company. Institutional interest has moved by 0.48% over the past three months. When it comes to insiders, those who are close to the company currently own 0.10% percent of MSFT shares. Institutions have seen ownership changes of an accumulative -7.17% over the last three months.

How Analysts Feel About Microsoft Corporation

While it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to use their thoughts when validating your own when it comes to making investment decisions in the technology sector. Below are the recent moves that we have seen from analysts with regard to MSFT.

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Mar-14-19

Initiated

Mizuho

Buy

Jan-31-19

Reiterated

Nomura

Buy

$115 → $113

Jan-31-19

Reiterated

Citigroup

Neutral

$114 → $110

Oct-25-18

Reiterated

BofA/Merrill

Buy

$136 → $140

Oct-22-18

Reiterated

BofA/Merrill

Buy

$134 → $135

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $4.99. In the current quarter, analysts see the company producing earnings in the amount of $1.00. Over the last 5 years, MSFT has generated revenue in the amount of $7.20% with earnings coming in at 8.50%. On a quarter over quarter basis, earnings have seen movement of 11.50% and revenue has seen movement of 12.30%.

Float Information

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 7.88B shares of Microsoft Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, MSFT has a float of 7.56B.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to MSFT, the short percent of the float is 0.54%.

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