Microsoft stock: buy or sell?

MSFT stock price: $138.41 1.67% At close on August 19th, 2019

Updated on:
August 19th, 2019

5

The Redmond company shares soared 1.67% to $138.41 today.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Microsoft stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean MSFT will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Microsoft stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 15 ratings published for MSFT stock in the last month.

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
2019-8-5Credit Suisse Groupn/aBuy
2019-7-25Argusn/aBuy
2019-7-24Royal Bank of Canadan/aBuy
2019-7-19Stifel Nicolausn/aBuy
2019-7-19Raymond Jamesn/aStrong-Buy
2019-7-19Oppenheimern/aOutperform
2019-7-19Morgan Stanleyn/aOverweight
2019-7-19Morgan Stanleyn/aOverweight
2019-7-19Macquarien/aOutperform
2019-7-19KeyCorpn/aOverweight
2019-7-19JPMorgan Chase & Co.n/aBuy
2019-7-19JPMorgan Chase & Co.n/aBuy
2019-7-19DZ Bankn/aBuy
2019-7-19Credit Suisse Groupn/aOutperform
2019-7-19Credit Suisse Groupn/aOutperform

Microsoft stock analysis

Daily outlook

The tech giant soared a beatiful 1.67% and closed at $138.41.

The tech giant soared a beatiful 1.67% and closed at $138.41. MSFT is soaring again after a 4.80% correction from its last top on August/9 at $138.92. On Friday MSFT price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock. On July 26th, MSFT hit a new all time high, pushing higher than on Jul/24 tops. Check different trading setups that use ATHs as triggers.

MSFT stock chart (daily)

Weekly outlook

Microsoft shares appreciated 1.67% this week, ending at $138.41.

MSFT marked an uptrend of rising tops and rising bottoms. Since its last top late July at $141.21, price slid and bounced up back from $130.35. Breaking down under $130.35 would cancel the current uptrend and it might test lower supports. Note that $141.21 might act as a resistance line. Not so far away is the last price record the tech giant marked late July. 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 IPO was on March 13th, 1986 at $0.06 per share1. Since then, MSFT stock grew a 230,583.30%, with a yearly average of 6,987.40%. If you had invested right after MSFT's IPO a $1,000 in Microsoft stock in 1986, it would worth $2,305,833.00 today.

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

Microsoft stock historical price chart

MSFT stock reached all-time highs on July/26 with a price of $141.21.

Microsoft stock price target is $156.40

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 14 price predictions for MSFT stock published in the last month:
MSFT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-5Credit Suisse GroupSet Price Targetn/a$155.00-
2019-7-25ArgusRaises Target$5.26$158.002903.8%
2019-7-24Royal Bank of CanadaSet Price Targetn/a$153.00-
2019-7-19Stifel NicolausRaises Target$150.00$155.003.3%
2019-7-19Raymond JamesRaises Target$160.00$163.001.9%
2019-7-19OppenheimerRaises Target$145.00$160.0010.3%
2019-7-19Morgan StanleyReiterates$145.00$155.006.9%
2019-7-19Morgan StanleyRaises Target$145.00$155.006.9%
2019-7-19MacquarieRaises Target$150.00$160.006.7%
2019-7-19KeyCorpRaises Target$143.00$155.008.4%
2019-7-19JPMorgan Chase & Co.Set Price Targetn/a$155.00-
2019-7-19JPMorgan Chase & Co.Reiteratesn/a$155.00-
2019-7-19Credit Suisse GroupReiterates$145.00$155.006.9%
2019-7-19Credit Suisse GroupRaises Target$145.00$155.006.9%
(in average)$133.30$156.4017.0%
Moving in a range from $163.00 and $153.00, the price target for the tech giant stock is $156.40. In average, analysts' outlook on MSFT price forecast is positive, upgrading the prediction by a 17.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on January, Microsoft . Unfortunately, reported EPS is not yet available in our database.
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

Compared to 2017, last anual turnover report draw an exceptional growth of 22.69% to $110,360.00 M dollars. In contrast, its profit margin (compared to revenues) fell to 15.02%, that is $16,571.00 million.

Microsoft fiscal year ends 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 million USD. When comparing this TTM figures with the last reported annuality, we can review the tech giant business evolution since June 2018: Annual sales up to December, compared to lastest yearly report, soared a shining 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 million in sales for 2018-Q4, a 11.65% improvement compared to previous quarter. Reported quarter income marked $8,420.00 M with a profit margin of 25.93%. Profit margin slightly fell a -4.41% compared to previous quarter when profit margin was 30.34%. When comparing turnover to same quarter last year, Microsoft sales marked an outstanding gain and climbed 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 buy shares of a stock, it's worth to have a look 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$1,060.2 B$949.9 B$201.0 B$353.1 B$28.8 B
Total shares7,660.0 M4,600.0 M4,280.0 M299.4 M1,510.0 M
Float shares7,520.0 M4,260.0 M4,280.0 M601.6 M1,500.0 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

Monday, August 19th, 2019
Open$137.85
Close$138.41
Day range$136.88 - $138.55
Previous close$136.13
Session gain1.67%
Average true range$3.68
50d mov avg$135.99
100d mov avg$129.85
200d mov avg$118.18
Daily patternlb01a
Weekly pattern lb03a

Microsoft performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected Apple, Cisco Systems, Alphabet, HP, International Business Machines, Oracle and as the bechmarking frame for Microsoft stock.
Stock3m6m12m
MSFTMicrosoft10.01%25.61%29.69%
AAPLApple9.68%22.10%-3.62%
CSCOCisco Systems-16.14%-3.79%5.17%
GOOGLAlphabet0.89%5.32%-3.01%
HPQHP1.11%-16.68%-19.93%
IBMInternational Bus...0.75%-0.79%-3.94%
ORCLOracle2.44%3.46%11.12%
SAP-6.14%12.00%0.34%

Microsoft competitors

One check before trading any stock is to review a list of its competitors, in this case for Microsoft. We selected 7 companies as Microsoft competitors as they are in the same industry or have similar market objectives.

Latest Microsoft stock news