Microsoft

Sinisa

Sinisa

— 3 min read

As of September 13, 2024, Microsoft's stock (MSFT) is trading at $429.00, showing a 0.65% increase from the previous day's close. Here's a comprehensive overview of Microsoft's current stock performance and recent trends:

Current Stock Price and Performance

Microsoft's stock price has seen significant growth over the past year. The current price of $429.00 represents a 26.07% increase over the last 12 months. On September 10, 2024, the closing price was $414.20.

Key Statistics

  • 52-Week Range: The stock has traded between $309.45 and $468.35 over the past year.
  • All-Time High: Microsoft reached its all-time high closing price of $466.73 on July 5, 2024.
  • Market Capitalization: Microsoft's market value stands at approximately $3.14 trillion.
  • Trading Volume: The average daily trading volume is around 19.76 million shares.

Recent Performance

  • Year-to-Date (YTD) Return: Microsoft stock has gained 14.17% so far in 2024.
  • Total Return (TTM): The total return over the past 12 months is 38.31%.
  • 5-Year Total Return: Over the past five years, Microsoft has delivered an impressive 254.38% total return.

Technical Analysis

The stock is currently trading above its 50-day moving average, indicating a bullish short-term trend. However, it has recently undergone a retracement of about 6% from its all-time high. Investors should watch for potential support levels at $430, $410, $385, and $367 if the stock continues to pull back.

Long-Term Outlook

Microsoft remains one of the largest technology providers globally, dominating the PC software market and cloud services industry. The company's strong position in productivity software and cloud computing continues to drive its growth.

Insider Activity

Recent insider selling activity has been noted, with Executive VP & CFO Amy Hood selling shares worth approximately $16 million at an average price of $411. However, this represents only a small portion of her overall holdings, and insiders still maintain significant ownership in the company.

Microsoft's stock continues to demonstrate strong performance, backed by the company's dominant market position and ongoing growth in cloud services. Investors should monitor key support levels and overall market conditions when considering their investment strategies.

Based on the latest information available, here's an analysis of Microsoft's stock valuation:

Current Stock Price and Performance

As of September 13, 2024, Microsoft's stock (MSFT) is trading at $429.00, showing a 0.65% increase from the previous day's close. The stock has seen significant growth over the past year, with a 26.07% increase over the last 12 months.

Market Capitalization and Enterprise Value

Microsoft has a market capitalization of approximately $3.14 trillion. The enterprise value is slightly higher at $3.06 trillion.

Valuation Ratios

Microsoft's valuation ratios indicate a premium pricing compared to earnings and book value:

  • Price-to-Earnings (P/E) Ratio: The trailing P/E ratio is 34.65, while the forward P/E ratio is 31.03.
  • Price-to-Sales (P/S) Ratio: 12.40 (trailing) and 10.79 (forward).
  • Price-to-Book (P/B) Ratio: 11.32.
  • PEG Ratio: 2.33, suggesting the stock may be overvalued relative to its expected growth rate.

Enterprise Value Ratios

  • EV/EBITDA: 23.65.
  • EV/Sales: 12.49.
  • EV/FCF: 41.33.

Analyst Projections

Wall Street analysts have a consensus "Moderate Buy" rating for Microsoft stock. The average price target is $494.72, representing a 15.86% upside from the current price. Price targets range from a low of $375.00 to a high of $600.00.

Growth and Profitability

Microsoft's revenue has grown by 74.21% from September 2020 to June 2024. The company maintains strong profitability metrics:

  • Return on Equity (ROE): 37.13%.
  • Return on Invested Capital (ROIC): 20.98%.

Dividend Information

Microsoft pays an annual dividend of $3.00 per share, yielding 0.73%. The company has a history of 19 years of dividend growth.

Conclusion

Microsoft's stock is trading at premium valuation multiples, reflecting investor confidence in its strong market position, consistent growth, and future potential in areas like cloud computing and AI. However, the high valuation ratios suggest that much of the company's expected growth may already be priced into the stock. Investors should consider their risk tolerance and long-term outlook when evaluating Microsoft as an investment opportunity.

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