Microsoft Corporation (NASDAQ:MSFT) Stock Gets Mixed Reviews From Analysts

Stock analysts at Wells Fargo lifted target price for Microsoft Corporation (NASDAQ:MSFT) shares but reaffirmed their Overweight recommendation for the stock in their opinion released on January 30. The price target has been increased from $185 to $205. Wedbush analysts again handed out a Outperform rating to MSFT shares but they lifted target price for the firm in a flash note to investors on January 30. The price target has been raised from $195 to the new $210. Wedbush, analysts launched coverage of MSFT shares with a Outperform recommendation, according to their flash note to investors on January 30. Analysts at Stifel are sticking to their Buy recommendation for the stock. However, on January 30, they lifted target price to $200 from the prior target set at $175. Analysts at Stifel, made their first call for this company shares with a Buy rating, according to a research note that dated back to January 30.

For the period that ended January 15, 2020, the short interest in Microsoft Corporation (NASDAQ:MSFT) stock is on the up. The 1.49% rise could be an indication that investors and traders expect a drop in the share price, often as a result of a drop in the business’ fundamentals. The average brokerage opinion at 1.6 suggests disposing off these shares. Between December 31 and January 15, the total count of shorted shares totaled 63.64 million. That number was 932,894 more shares compared with the total of 62.71 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move down. The average daily volume for MSFT at the January 15th settlement retreated to 20,159,661, versus 20,806,843 at the December 31st report. That led days to cover to move at 3.156765, a 4.75% increase compared to the 3.01374 days to cover recorded at the prior short interest data release.

Let’s take a glimpse at some insider activity at Microsoft Corporation (NASDAQ:MSFT) and observe the pattern. The earliest insider trade happened on 02/04/2020. COURTOIS JEAN PHILIPPE parted with a total of 18 thousand shares of the firm at average share price of $179.55. The total amount for the sale was set at $3.23 million. On completing this exchange, the Executive Vice President account balance was 872.89 thousand shares. The stock lost -0.07 percent from that insider sale. On 12/05/2019, Johnson Margaret L, EVP, Business Development, did a sale of 35 thousand shares at a price of $150.01 per share. This got rid of 5.25 million shares from the insider’s fortune and the stock experienced a 19.61 percent rally in price since the news became public. This exchange saw 345.15 thousand shares get out from the EVP, Business Development account. On 11/07/2019, EVP, Chief Marketing Officer Capossela Christopher C recorded a sale transaction valued at $1.45 million. The sale at $144.58 a share has eliminated 10 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 24.1 percent increase since the transaction reporting date. The company insider is left with 111.44 thousand shares remaining in the account. Capossela Christopher C, who works as EVP, Chief Marketing Officer at the company, performed a sale of 5 thousand shares in a transaction worth $722.95 thousand. The disposal recorded on 11/05/2019 was priced at $144.59 per share. The stock price soared 24.09 percent since the transaction. Capossela Christopher C currently holds a stake of 121.44 thousand in MSFT stock which is worth $21.79 million after the insider selling.

Microsoft Corporation (MSFT) is most likely going to rise 6.32 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $210 as 12-month high price target. This represents a whopping 17.02 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $200, which means a return possibility of 11.45 percent in comparison with the closing price of the stock of $179.46 in recent trading session. The lowest price set for the stock is $165 which is just above -8.06 percent from MSFT share’s price at the end of session.

The stock is lingering around the initial support level of $177.41. After this, the following support is at the zone of $174.69. Up until the time the MSFT stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 74.54 on the daily chart, and this may be a cause for concern. In case the price goes below $174.69 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $181.74 level may cause a pull-back move approaching $183.35 mark.

In the recent trading session, Microsoft Corporation (NASDAQ:MSFT) shares lost -0.36% or -0.66 points to reach at $179.46 with a thin trading volume of 22.2 million shares. It opened the trading session at $177.14, the shares rose to $180.64 and dropped to $176.31, the range by which the price of stock traded the whole session. The company now has a market cap of $1390 billion and currently has 7.72 billion outstanding shares. Microsoft Corporation (MSFT) stock has accumulated 13.55 percent of market value in 21 trading days.

MSFT stock’s trailing 3-year beta is 1.17, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $5.41 share in the trailing 52 weeks. The stock’s value surged 14.22 percent year to date (YTD) compared to a rise of 70.34 percent in 52 week’s period. The firm’s shares are still trading -0.65 percent below its 1-year high of $180.64 and 72.13 percent up from 52-week low of $104.26. The average consensus ranking on the company is 1.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Microsoft Corporation (MSFT) shares are trading at a P/E ratio of 31.49 times earnings posted in the trailing 12 months. The industry MSFT deals with has an average P/E of 36.83. Its P/B ratio is standing at 11.77X compared to the 14.55 industry average. It is additionally sporting a 8.94 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.51. Microsoft Corporation has a 67.7% gross profit margin, with its operating margin around 36.7%. Alongside this, the company’s net profit margin currently stands at 33%.

Past records have indicated that shares in Microsoft Corporation rose on 25 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.