Microsoft stock: buy or sell?

MSFT stock price: $126.90 0.54% At close on May 21st, 2019

Updated on:
May 21st, 2019

5

Shares of the tech giant inched a slightly fine 0.54% and closed at $126.90.

Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. The company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, Skype for Business, and related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.

Should I buy Microsoft stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Microsoft stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Microsoft stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for MSFT stock in the last 30 days.

The general sentiment of these ratings is bullish for MSFT stock, with 14 positive ratings.
Is MSFT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-6Credit Suisse Groupn/aBuy
2019-4-25UBS GroupBuyBuy
2019-4-25Raymond JamesStrong-BuyStrong-Buy
2019-4-25Piper Jaffray Companiesn/aOverweight
2019-4-25Oppenheimern/aOutperform
2019-4-25Morgan StanleyOverweightOverweight
2019-4-25KeyCorpOverweightOverweight
2019-4-25JPMorgan Chase & Co.n/aBuy
2019-4-25Deutsche Bankn/aBuy
2019-4-25BarclaysOverweightOverweight
2019-4-25Bank of AmericaBuyBuy
2019-4-24Goldman Sachs Groupn/aBuy
2019-4-24Credit Suisse Groupn/aBuy
2019-4-18Goldman Sachs Groupn/aBuy
2019-4-17KeyCorpn/aBuy

Microsoft stock analysis

Daily outlook

Microsoft shares inched 0.54% to $126.90 today.

Microsoft shares inched 0.54% to $126.90 today. Since last February when MSFT stock price broke up the SMA200d line, it gained $24.93 (24.45%). On March, SMA50d and SMA100d crossed up triggering a rise of 15.26%. On Apr/25, MSFT hit new all time highs, pushing higher previous ATH of $125.39 recorded on Apr/24. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

MSFT stock chart (daily)

Weekly outlook

The tech giant declined an unpleasant -0.91% this week. Late April MSFT rocketed a great 5.02% in just one week.

In a weekly time frame, the Redmond company stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, MSFT might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Microsoft marked late April. Early February MSFT price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

MSFT stock chart (weekly)

Microsoft stock price history

Microsoft stock went public on March 13th, 1986 with a price of $0.061. Since then, MSFT stock grew a 211,400.00%, with an average of 6,406.10% per year. If you had invested $1,000 in Microsoft stock in 1986, it would worth $2,114,000.00 today.

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

Microsoft stock historical price chart

MSFT stock reached all-time highs on Apr 25th with a price of $130.89.

Microsoft stock price target is $142.80

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' MSFT stock price predictions in the hope that they will be met as they may be wrong and not met. We found 15 price predictions for the Redmond company stock posted in the last 30 days:
MSFT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-6Credit Suisse GroupSet Price Targetn/a$145.00-
2019-4-25UBS GroupSet Price Target$125.00$150.0020%
2019-4-25Raymond JamesRaises Target$142.00$149.004.9%
2019-4-25Piper Jaffray CompaniesReiterates$130.00$140.007.7%
2019-4-25OppenheimerRaises Target$127.00$145.0014.2%
2019-4-25Morgan StanleyRaises Target$140.00$145.003.6%
2019-4-25KeyCorpRaises Target$141.00$143.001.4%
2019-4-25JPMorgan Chase & Co.Set Price Targetn/a$145.00-
2019-4-25Deutsche BankRaises Target$130.00$145.0011.5%
2019-4-25BarclaysRaises Target$132.00$152.0015.2%
2019-4-25Bank of AmericaRaises Target$150.00$155.003.3%
2019-4-24Goldman Sachs GroupSet Price Targetn/a$131.00-
2019-4-24Credit Suisse GroupSet Price Targetn/a$125.00-
2019-4-18Goldman Sachs GroupSet Price Targetn/a$131.00-
2019-4-17KeyCorpReiteratesn/a$141.00-
(in average)$135.20$142.806.0%
Moving in a range from $155.00 and $125.00, the price prediction for MSFT stock is $142.80. In average, analysts' outlook on MSFT price forecast is positive, improving the target by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On January, Microsoft was in line with the expectations of the experts and reported an EPS of $1.10 per share. As soon as we get its posted EPS from the earnings report, we will extend this review.
MSFT earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.86n/a
2017-Q32017-10-260.720.8416.7%
2017-Q42018-01-310.870.9610.3%
2018-Q12018-04-260.850.9511.8%
2018-Q22018-07-191.071.135.6%
2018-Q32018-10-240.961.1418.8%
2018-Q42019-01-301.091.10.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Microsoft annual sales skyrocketed a super good 22.69% to $110,360.00 million USD from $89,950.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) eased a -8.56% to 15.02%.

Microsoft presents anual results in June, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Microsoft TTM sales up to December 2018 were $118,459.00 and earnings $33,541.00 M USD. When comparing this TTM figures with the last reported annuality, we can esteem the tech giant business evolution since June 2018: Annual revenues up to December, compared to lastest yearly report, soared a very good 7.34%. Regarding profit margin, Microsoft boosted 13.30% to 15.02%

MSFT annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$77,650 M-$21,860 M28.2%-
2014$86,730 M11.69%$22,070 M25.4%0.96%
2015$93,580 M7.90%$12,193 M13.0%-44.75%
2016$91,154 M-2.59%$20,539 M22.5%68.45%
2017$89,950 M-1.32%$21,204 M23.6%3.24%
2018$110,360 M22.69%$16,571 M15.0%-21.85%
TTM $118,459 M7.34%$33,541 M28.3%102.41%

Quarterly financial results

Microsoft posted $32,471.00 M in revenues for 2018-Q4, a 11.65% up compared to previous quarter. Reported quarter earnings marked $8,420.00 M with a profit margin of 25.93%. Profit margin depreciated a -4.41% compared to previous quarter when profit margin was 30.34%. When comparing revenues to same quarter last year, Microsoft sales marked an amazing growth and boosted a 12.29%.
MSFT quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$23,180 M-$6,510 M28.1%-
2017-Q3$24,430 M5.39%$6,580 M26.9%1.08%
2017-Q4$28,918 M18.37%$-6,302 M-21.8%-195.78%
2018-Q1$26,819 M-7.26%$7,424 M27.7%-217.80%
2018-Q2$30,085 M12.18%$8,873 M29.5%19.52%
2018-Q3$29,084 M-3.33%$8,824 M30.3%-0.55%
2018-Q4$32,471 M11.65%$8,420 M25.9%-4.58%
2019-Q1$30,571 M-5.85%$8,809 M28.8%4.62%

Microsoft ownership

When you are planning to invest in shares of a stock, it's always worth to check its ownership structure.

Microsoft shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.41% of all shares.

In case of Microsoft stock, 74.70% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MSFT stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Microsoft:

MSFTAAPLCSCOGOOGLHPQ
Market cap$972.1 B$842.2 B$246.4 B$342.8 B$29.0 B
Total shares7,660.0 M4,600.0 M4,400.0 M299.4 M1,530.0 M
Float shares7,560.0 M4,340.0 M4,400.0 M602.8 M1,540.0 M
  - Institutional holdings (%)74.7%61.0%77.3%81.0%83.9%
  - Insider holdings (%)1.4%0.1%0.1%0.2%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Microsoft summary

Tuesday, May 21st, 2019
Open$127.43
Close$126.90
Day range$126.58 - $127.53
Previous close$126.22
Session gain0.54%
Average true range$2.82
50d mov avg$121.87
100d mov avg$113.80
200d mov avg$110.61
Daily pattern
Weekly pattern lt06a

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, Cisco Systems, Alphabet, HP, International Business Machines, Oracle, Red Hat and .
Stock3m6m12m
MSFTMicrosoft14.78%24.11%31.11%
AAPLApple6.26%7.13%-1.43%
CSCOCisco Systems12.49%27.53%33.23%
GOOGLAlphabet2.52%11.12%5.59%
HPQHP-19.46%-14.44%-11.07%
IBMInternational Bus...-1.82%18.03%-1.42%
ORCLOracle3.67%12.18%17.15%
RHTRed Hat1.80%6.27%12.74%
SAP18.75%27.37%12.80%

Microsoft competitors

One check before trading any stock is to have a look a list of its competitors, in this case for Microsoft. We chose 8 companies as Microsoft competitors as they are in the same industry or have similar market objectives.

Latest Microsoft stock news