Microsoft Corporation (MSFT) shares are trading at lower $215.37 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $239.71.
To add more color to this target, the company’s high over the last year is $232.86 and the low is $132.52. Over the last 52 weeks, MSFT is up 44.24% while the S&P 500 is up 18.49%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, MSFT reported a profit of $26.15 billion. Microsoft Corporation also saw revenues increase to $37.15 billion. In addition, MSFT has free cash flow of $14.43 billion as of 09-2020. The company’s EBITDA came in at $18.52 billion which compares well with its peers.
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MSFT booked profit margins of 32.30%, its Return on Equity (ROE) is 40.70%, and its Return on Assets is 16.20%. All told, it is clear that, MSFT needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MSFT has a short ratio of 1.08 and outstanding shares of 7.57B.
MSFT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 26.53 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.20. Microsoft Corporation MSFT also noted assets of $301.0 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MSFT has historically followed its peers on positive news.
All told, Microsoft Corporation MSFT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MSFT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Microsoft Corporation MSFT is now commanding a market cap of 1618.01B and a float of 7.56B. MSFT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MSFT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in MSFT, either long or short, and we have not been compensated for this article.