Microsoft Corporation (MSFT) Stock: A Technology Stock That’s Seeing Declines


Microsoft Corporation (MSFT) is working its way for to the top in the market today. The company, one that is focused in the technology sector, is presently priced at $117.05 after falling -2.64% so far in today’s session. In terms of technology stocks, there are a number of factors that have the potential to lead to declines in the market. News is one of the most common reasons for movement. Here are the most recent stories relating to MSFT:

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Mar-24-19 10:10PM These 3 Tech Titans Are Still Buys, But Here’s Why You Should Be Wary
07:33PM Microsoft’s Smith Urges Talk of Tech’s ‘Legal Responsibilities’
06:47PM Why the British Pound Is Stronger Than the U.S. Dollar
02:42PM Which is the Most Popular Company Among Hedge Funds?
01:10PM As the Game Streaming Wars Begin,Twitch Is Looking Like Amazon’s Secret Weapon

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

Returns That MSFT Investors Have Seen

Although a move down in a single session, like the fall that we’re seeing from Microsoft Corporation may lead to fear in some investors, a single session fall by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is generally a good idea to take a look at trends just a single trading session. As it relates to MSFT, here are the movements that investors have seen:

  • Weekly – In the past 5 trading sessions, MSFT has generated a change in value in the amount of 0.98%.
  • Past 30 Days – The ROI from Microsoft Corporation in the last 30 days comes to 6.98%.
  • Quarterly – Throughout the last three months, the company has generated a return of 12.88%
  • Past Six Months – Over the last six months, we’ve seen a change of 4.79% from the company.
  • YTD – Since the close of last year MSFT has produced a return on investment of 15.24%.
  • Full Year – Lastly, throughout the last full year, we’ve seen performance that works out to 26.57% from MSFT. Over this period of time, the stock has sold at a high price of -3.12% and a low price of 34.42%.

Ratios Of Note

Digging into a few key ratios having to do with a company can give prospective traders a look of just how dangerous and/or potentially profitable a stock pick might be. Here are some of the important ratios to think about when digging into MSFT.

Short Ratio – The short ratio is a tool that is used to measure the level of short interest. The higher this ratio, the more investors believe that the price of the stock is going to fall. Throughout the sector, strong tech stocks can have a lower short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, as it relates to Microsoft Corporation, it’s short ratio comes to 1.35.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they mature based on quick assets or current assets. In the technology space, many companies are reliant on the continuation of support from investors as they work to bring new technologies to market, the current and quick ratios can look damning. Nonetheless, some better companies in the technology sector do have positive current and quick ratios. As it relates to MSFT, the quick and current ratios come to 3.10 and 3.10 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the share price of the stock. In this case, the book to share value ratio is 11.98.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value is 16.20.

What Are Big Money Players Doing With Microsoft Corporation

An interesting fact I’ve come to understand in my brief time in existence is that good investors tend to follow the moves made by big money investors. That is to say, investors that are looking to keep the risk down will keep their eyes on investments made by institutions as well as insiders of the company. With that said, how does the big money flow when it comes to MSFT? Here’s what’s going on:

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.

What Analysts Think About Microsoft Corporation

Although it’s not a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their analysis when validating your own thoughts before making an investment decision in the technology sector. Here are the most 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

Financial Results And Expectations

What have ween seen from MSFT in terms of financial results?Here is the data:

  • Analyst Expectations – As it stands at the moment, Wall St. analysts expect that Microsoft Corporation will come up with EPS coming to a total of 4.99, with 1.00 being announced in the earnings announcement for the current quarter. Although this information isn’t earnings driven, because we’re chatting about analysts, Microsoft Corporation is presently graded as a 1.70 on a scale from 1 to 5 on which 1 is the poorest possible Wall Street analyst grade and 5 is the best possible rating.
  • 5-Year Sales – In the past half decade, Microsoft Corporation has created a movement in revenue in the amount of 7.20%. Earnings per diluted share over the last half decade have generated movement in the amount of 8.50%.
  • Q/Q – In terms of quarter over quarter data, or Q/Q data as it is commonly referred to as in the world of humans, the company has created a change in earnings that comes to a total of 11.50%. The company has also seen a change in regard to sales that amounts to 12.30%.

What’s The Float Looking Like?

Investors and traders seem to have an interest in the counts of shares both available and outstanding. In terms of Microsoft Corporation, currently there are 7.88B with a float of 7.56B. These numbers mean that of the total of 7.88B shares of MSFT that are out there today, 7.56B are available to be traded by the public.

It’s also important to follow the short percent. After all, if a large percentage of the float is shorted, the overall feeling among traders is that the equity is going to fall hard. With regard to MSFT, the percentage of the float that is shorted currently sits at 0.54%. Most investors would say that a concerning short percent of the float would be considered to be anything over 40%. However, I have found that anything over 26% is likely a risky play.

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