Microsoft stock: buy or sell

MSFT stock price: $262.63 1.23% At close on Jun 21st, 2021

Updated on:
Jun 22nd, 2021

2

Microsoft stock brief

  • Microsoft inched a 1.23% after hitting new all-time highs on Monday
  • The stock is configuring an uptrend pattern since September 2020, when it bottomed at $194.84. Up to date, the uptrend marked a 34.79% gain since the beginning of this rally. On Monday Microsoft broke out above $262.58 giving an entry point
  • UBS Group posted a strong bullish rating for Microsoft on Tuesday, targeting $300.00
  • On Monday broke out above its latest top at $262.58
  • The price is currently higher than the upper Bollinger band, which often indicates a short-term correction
  • Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.

Should I buy Microsoft stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $MSFT stock a buy?

Currently, Microsoft stock matches 2 trading strategies:

Uptrend buy setup

Microsoft stock is in an uptrend since in September 2020 that so far has marked a gorgeous 35.00% gain. Price marked a pull back in this uptrend at $237.52 in mid-May, and since then it bounced up a 10.57%. Price just broke out above the buy point at $262.58, but it's still eligible. If price goes above $275.71, don't chase the price and wait for the following pullback. If you decide to enter this trade, the suggested stop loss is at $236.32

Buy setupBuy pointStop lossRisk
Uptrend buy setup$262.58$236.3210.00%

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it scales rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Microsoft can break to ATH any time soon, as it only needs to rise a 0.34%. Setup your buy order at $263.52 if you want to trade with this strategy. The stop loss would be set at $237.17

Buy setupBuy pointStop lossRisk
ATH buy setup$263.52$237.1710.00%

Should I sell Microsoft stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impetuous decisions based on our sentiments or the noise that surrounds the market. Our trading system selects very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies should not be used for shorting $MSFT stock

A guiding principle is that you must never keep an operation that shows a greater losses than those expected by the time of the buy. The timing to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Microsoft stock?

Currently, Microsoft stock doesn't match any of our preferred sell setups, so if you hold Microsoft shares and your operation is in profit probably is not time to sell now

Microsoft ratings

In the last 30 days, 8 ratings were published for Microsoft. General sentiment is bullish, with 6 out of 8 posting optimistic outlooks

Microsoft analysts' ratings - Last month
Brokerage firmRating
May 24th, 2021
Jefferies Financial Group Strong buy
May 26th, 2021
Fundamental Research Neutral
Morgan Stanley Strong buy
Wedbush Strong buy
Jun 1st, 2021
KGI Securities Buy
Jun 15th, 2021
Fundamental Research Neutral
Jun 21st, 2021
Rosenblatt Securities Strong buy
Jun 22nd, 2021
UBS Group Strong buy

Microsoft stock analysis

Microsoft shares started an uptrend in September 2020, and grew a gorgeous 34.79%. The price line shows higher highs and higher troughs, and along the way provided some entry points for those who wanted to trade in. Latest pullback was in mid-May, when price bounced at $237.52. Microsoft broke out above $262.58 (its last top) on Monday. That breakout was a good buying opportunity

$MSFT at Highs

On Monday, Microsoft hit new all-time highs (ATH) again at $263.52. Previous highs were last April

SMAs overview

MSFT stock SMAs chart

Supports and resistances

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $262.58 (-0.02% below)
  • S2: $245.00 (-6.71% below)
  • S3: $237.52 (-9.56% below)
  • Bollinger bands

    Price levels above or below the Bollinger Bands tell us that the price has followed a strong trend that has led to extreme upward or downward values. For this case, the price is over the upper band, which should mean a possible near-term adjustment (at least) until it is under the band

    MSFT stock Bollinger Bands chart

    Relative strength index

    The RSI dropped below the overbought level of 70 last April after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Monday was 65.23. Microsoft shares only changed a 0.96% since then

    MSFT stock RSI chart

    Microsoft stock price history

    Microsoft started trading on Mar 13th, 1986 at $0.06 per share1. Since then, MSFT stock surged by 437,616.67%, with an average of 12,503.33% per year. If you had invested thousand dollars in Microsoft stock on Mar 1986, it would worth $4,377,166.67 today.

    1: Adjusted price after possible price splits or reverse-splits

    MSFT stock price history chart

    Price target for Microsoft stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis predicting how a stock will performance in the future.

    Along with buy or sell recommendations, brokerage institutions post their price predictions based on the stock price action and the company fundamental data. Most of these predictions follow the release of new financial information by the company, and usually. If you are a small investor you must not buy or sell based on these predictions.

    There are 6 price predictions posted for Microsoft that average $285.57. That is a 8.73% than the last price ($262.63).

    Microsoft stock price predictions
    Brokerage firmPrice target
    May 24th, 2021
    Jefferies Financial Group $300.00$290.00
    May 26th, 2021
    Fundamental Research $236.60$256.70
    Morgan Stanley $300.00
    Wedbush $310.00
    Jun 1st, 2021
    KGI Securities Not available
    Jun 15th, 2021
    Fundamental Research $236.60$256.70
    Jun 21st, 2021
    Rosenblatt Securities Not available
    Jun 22nd, 2021
    UBS Group $300.00

    Earnings and financials

    Shareholders call was hosted by Microsoft ($MSFT) last April after releasing the financial report. Microsoft topped analysts estimates and reported of $1.95, that is a 9.55% improvement versus the previous predictions of $1.78. Even so, reported revenues of $41.7 billion were in line with market predictions.

    Compared to the same quarter one year ago, EPS was $1.40, so posted EPS means a improvement of 39.29%. Sales exploded a 19.09% on an annualized basis in the , from $350.2B to $417.1B last quarter.

    Microsoft ($MSFT) will host the Q4 earnings call mid next July. Wall Street analysts forecast of $1.90, that is a 2.56% less than Q3.

    Microsoft competitors

    Microsoft belongs to the Software - Infrastructure industry, where it has industry peers.

    Microsoft main competitors are:

    Microsoft competitors
    CompanyMarket capRatingBullish ratings1
    Microsoft ($MSFT) $1.8T Strong buy 6
    Apple ($AAPL) $2.0T Buy 2
    Google ($GOOGL) $1.4T Buy 1
    Cisco Systems ($CSCO) $206.8B Neutral 0
    SAP SE ADS (SAP) $142.9B Neutral 0
    IBM ($IBM) $115.2B Neutral 0
    HP ($HPQ) $37.3B Buy 1

    1 In the last 30 days.

    Microsoft performance

    To better understand Microsoft performance you must compare its gains with other related stocks in same sector or industry.. For Microsoft, the benchmark is made against Apple, Google, Cisco Systems, SAP SE ADS, IBM and HP.

    MSFT performance compared
    Company1m3m6m
    Microsoft ($MSFT) 6.10% 10.80% 20.70%
    Apple ($AAPL) 3.50% 7.50% 2.90%
    Google ($GOOGL) 5.10% 19.40% 39.50%
    Cisco Systems ($CSCO) 0.80% 7.10% 20.30%
    SAP SE ADS (SAP) 0.30% 17.20% 11.30%
    IBM ($IBM) 1.60% 13.70% 19.70%
    HP ($HPQ) -8.90% -3.10% 22.80%

    Please read:
    The comments published in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the individual circumstances of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for educative reasons only

    Microsoft summary

    Monday, June 21st, 2021
    Open$259.82
    Close$262.63
    Day range$257.92 - $263.52
    Previous close$259.43
    Session gain1.23%
    Average true range$4.66
    50d mov avg$252.31
    100d mov avg$244.78
    200d mov avg$228.85
    Earnings dateJuly 21st, 2021

    Frequently asked questions

    What is Microsoft stock symbol?

    Microsoft Corporation is a public company trading in the US stock market with the MSFT symbol

    Is Microsoft stock a buy or sell?

    Microsoft received 8 ratings in the last 30 days: 6 bullish, 0 bearish and 2 neutral.

    Will MSFT go up?

    Microsoft had different price predictions issued by analysts in the last 30 days setting the target price to $285.57. That is a 8.73% than the current price ($262.63).