Microsoft Corporation (MSFT) Stock: A Technology Stock That’s Making Its Way For The Top


Microsoft Corporation (MSFT) is gaining in the market in today’s trading session. The company, focused on the technology space, is currently trading at $117.05 after a move up of -2.64% so far today. As it relates to technology stocks, there are quite a few factors that have the potential to generate gains in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines centered around MSFT:

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Mar-22-19 06:22PM Gaming Meets the Cloud and Investors Scramble to Catch Up
03:20PM Video-conferencing company Zoom files for IPO with over $300 million in sales and even a profit
12:00PM Microsoft Teams wins Best of Enterprise Connect Overall award
11:26AM Googles Gaming Platform Is Not a Reason to Buy AMD Stock
11:10AM Microsoft XCloud vs. Google Stadia: Battle Of the Game Streaming Services

Nonetheless, any time investors are making an investing decision, investors should look into far more than news, especially in the ever evolving tech sector. Here’s what’s happening in regard to Microsoft Corporation.

The Performance That We’ve Seen From MSFT

While a move up on a single session, like the move that we’re seeing from Microsoft Corporation may lead to excitement in some investors, a single session gain by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It’s generally important to look at trends experienced by the stock for a period longer than a single session. When it comes to MSFT, here are the returns on investment that investors have experienced:

  • Past 7 Days – Throughout the last 5 trading sessions, MSFT has produced a price change in the amount of 0.98%.
  • Past 30 Days – The monthly performance from Microsoft Corporation works out to 6.98%.
  • Quarterly – Over the last quarter, the company has generated a return of 12.88%
  • Bi-Annually – In the past 6 months, we’ve seen a change that amounts to 4.79% from the stock.
  • YTD – Since the close of last year MSFT has produced a ROI of 15.24%.
  • Full Year – Finally, in the last full year, investors have seen performance that works out to 26.57% from MSFT. Throughout this period, the stock has sold at a high of -3.12% and a low price of 34.42%.

Rations That You Should Look Into

Digging into a few key ratios having to do with a company generally gives investors a look of just how dangerous and/or rewarding a pick might be. Here are a few of the key ratios to consider when looking at MSFT.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the value of the stock is going to fall. Across the sector, strong technology stocks tend to have a lower short ratio. However, we also tend to see a lot of short squeezes in the sector. Nonetheless, in regard to Microsoft Corporation, the stock’s short ratio clocks in at 1.35.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure whether or not a company can pay for its debts when they mature based on quick assets or current assets. In the technology sector, several companies are heavily reliant on the continuation of support from investors as they work to bring new technologies to market, these ratios can look upsetting. However, quite a few good picks in the technology space come with good current and quick ratios. When it comes to MSFT, the quick and current ratios work out to 3.10 and 3.10 respectively.  

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

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the price of shares. In terms of MSFT, the cash to share value ratio comes to 16.83.

Investors Tend To Follow The Big Money

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 – At the moment, institutional investors own 74.70% of the company. Nonetheless, it’s important to mention that institutional ownership has seen a move in the amount of 0.49% over the past 3 months.
  • Insiders – with regard to insiders, those close to the company currently hold 0.10% of Microsoft Corporation. Their ownership of the company has changed by -7.43% throughout the past 3 months.

How Analysts Feel About Microsoft Corporation

Although it’s never a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to consider their analysis when validating your own opinions before making investment decisions in the tech industry. Below are the most recent moves that we have seen from analysts when it comes 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

Financial Results And Expectations

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%.

What’s The Float Looking Like?

Traders and investors tend to like to know the total numbers of shares both outstanding and available. With respect to Microsoft Corporation, there are currently 7.58B and there is a float of 7.56B. This means that of the total of 7.58B shares of MSFT in existence today, 7.56B are available to be traded on the market.

I also like to pay attention to the short percentage of the float. After all, when a high portion of the float available for trading is sold short, the overall opinion in the market is that the stock is going to take a dive. As far as MSFT, the percentage of the float that is sold short comes to a total of 0.54%. Most investors would say that a high short percent of the float is any percentage over 40%. However, I’ve found that a short ratio over 26% is usually a a play that could prove to be very risky.

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