Are analysts optimistic about Microsoft Corporation’s (NASDAQ:MSFT) stock?

The closing price of Microsoft Corporation (NASDAQ: MSFT) was $260.79 for the day, up 2.71% from the previous closing price of $253.92. In other words, the price has increased by $+6.87 from its previous closing price. On the day, 33377715 shares were traded. MSFT stock price reached its highest trading level at $261.07 during the session, while it also had its lowest trading level at $255.90.

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Our analysis of MSFT’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 19.80 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 48.47. For the most recent quarter (mrq), Quick Ratio is recorded 1.90 and its Current Ratio is at 1.90. In the meantime, Its Debt-to-Equity ratio is 0.35 whereas as Long-Term Debt/Eq ratio is at 0.32.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, BMO Capital Markets on January 25, 2023, Downgraded its rating to Market Perform and sets its target price to $265 from $267 previously.

On January 17, 2023, Guggenheim Downgraded its rating to Sell which previously was Neutral but kept the price unchanged to $212.

On January 05, 2023, DA Davidson started tracking the stock assigning a Buy rating and target price of $270.DA Davidson initiated its Buy rating on January 05, 2023, with a $270 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Feb 28 when Nadella Satya sold 4,767 shares for $248.88 per share. The transaction valued at 1,186,411 led to the insider holds 788,625 shares of the business.

Capossela Christopher C sold 1,000 shares of MSFT for $272,323 on Feb 13. The EVP, Chief Marketing Officer now owns 116,362 shares after completing the transaction at $272.32 per share. On Feb 09, another insider, Capossela Christopher C, who serves as the EVP, Chief Marketing Officer of the company, sold 1,000 shares for $269.38 each. As a result, the insider received 269,380 and left with 117,362 shares of the company.

Valuation Measures:

As of this moment, Microsoft’s Price-to-Earnings (P/E) ratio for their current fiscal year is 28.99, and their Forward P/E ratio for the next fiscal year is 24.27. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.42. For the stock, the TTM Price-to-Sale (P/S) ratio is 9.65 while its Price-to-Book (P/B) ratio in mrq is 10.61.

Stock Price History:

Over the past 52 weeks, MSFT has reached a high of $315.95, while it has fallen to a 52-week low of $213.43. The 50-Day Moving Average of the stock is 249.05, while the 200-Day Moving Average is calculated to be 252.46.

Shares Statistics:

MSFT traded an average of 31.29M shares per day over the past three months and 26.79M shares per day over the past ten days. A total of 7.45B shares are outstanding, with a floating share count of 7.44B. Insiders hold about 0.06% of the company’s shares, while institutions hold 72.40% stake in the company. Shares short for MSFT as of Jan 12, 2023 were 36.32M with a Short Ratio of 34.30M, compared to 41.57M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 0.49% and a Short% of Float of 0.49%.

Dividends & Splits

With its trailing 12-month dividend rate of 2.19, MSFT has a forward annual dividend rate of 2.72. Against a Trailing Annual Dividend Yield of 0.86%, it implies a Forward Annual Dividend Yield of 1.02%. The stock’s 5-year Average Dividend Yield is 1.14. The current Payout Ratio is 28.10% for MSFT, which recently paid a dividend on Mar 08, 2023 with an ex-dividend date of Feb 14, 2023. Stock splits for the company last occurred on Feb 17, 2003 when the company split stock in a 2:1 ratio.

Earnings Estimates

The firm’s stock currently is rated by 36 analysts. On average, analysts expect EPS of $2.25 for the current quarter, with a high estimate of $2.91 and a low estimate of $2.15, while EPS last year was $2.22. The consensus estimate for the next quarter is $2.48, with high estimates of $3.11 and low estimates of $2.14.

Analysts are recommending an EPS of between $9.72 and $9.02 for the fiscal current year, implying an average EPS of $9.36. EPS for the following year is $10.73, with 43 analysts recommending between $11.75 and $9.66.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 35 analysts. It ranges from a high estimate of $51.67B to a low estimate of $50.6B. As of the current estimate, Microsoft Corporation’s year-ago sales were $49.36B, an estimated increase of 3.40% from the year-ago figure. For the next quarter, 35 analysts are estimating revenue of $54.92B, an increase of 5.90% over than the figure of $3.40% in the same quarter last year. There is a high estimate of $58.07B for the next quarter, whereas the lowest estimate is $52.19B.

A total of 45 analysts have provided revenue estimates for MSFT’s current fiscal year. The highest revenue estimate was $211.99B, while the lowest revenue estimate was $206.06B, resulting in an average revenue estimate of $208.9B. In the same quarter a year ago, actual revenue was $198.27B, up 5.40% from the average estimate. Based on 44 analysts’ estimates, the company’s revenue will be $231.74B in the next fiscal year. The high estimate is $241.41B and the low estimate is $215.37B. The average revenue growth estimate for next year is up 10.90% from the average revenue estimate for this year.