Microsoft Corporation (NASDAQ: MSFT) has experienced a decline in its stock price by -0.66 compared to its previous closing price of 436.17. However, the company has seen a gain of 9.97% in its stock price over the last five trading days. reuters.com reported 2025-05-06 that OpenAI has told investors it will share a smaller fraction of revenue with Microsoft, The Information reported on Tuesday.
Is It Worth Investing in Microsoft Corporation (NASDAQ: MSFT) Right Now?
Microsoft Corporation (NASDAQ: MSFT) has a price-to-earnings ratio of 33.48x that is above its average ratio. Additionally, the 36-month beta value for MSFT is 0.99. There are mixed opinions on the stock, with 42 analysts rating it as a “buy,” 15 rating it as “overweight,” 6 rating it as “hold,” and 0 rating it as “sell.”
The public float for MSFT is 7.32B and currently, short sellers hold a 0.70% ratio of that float. The average trading volume of MSFT on May 07, 2025 was 25.16M shares.
MSFT’s Market Performance
The stock of Microsoft Corporation (MSFT) has seen a 9.97% increase in the past week, with a 20.42% rise in the past month, and a 5.08% gain in the past quarter. The volatility ratio for the week is 2.29%, and the volatility levels for the past 30 days are at 3.32% for MSFT. The simple moving average for the last 20 days is 10.85% for MSFT’s stock, with a simple moving average of 4.64% for the last 200 days.
Analysts’ Opinion of MSFT
Many brokerage firms have already submitted their reports for MSFT stocks, with Wedbush repeating the rating for MSFT by listing it as a “Outperform.” The predicted price for MSFT in the upcoming period, according to Wedbush is $515 based on the research report published on May 01, 2025 of the current year 2025.
Stifel, on the other hand, stated in their research note that they expect to see MSFT reach a price target of $500, previously predicting the price at $475. The rating they have provided for MSFT stocks is “Buy” according to the report published on May 01st, 2025.
Scotiabank gave a rating of “Sector Outperform” to MSFT, setting the target price at $500 in the report published on May 01st of the current year.
MSFT Trading at 11.67% from the 50-Day Moving Average
After a stumble in the market that brought MSFT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -7.48% of loss for the given period.
Volatility was left at 3.32%, however, over the last 30 days, the volatility rate increased by 2.29%, as shares surge +21.08% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.25% upper at present.
During the last 5 trading sessions, MSFT rose by +9.97%, which changed the moving average for the period of 200-days by -1.60% in comparison to the 20-day moving average, which settled at $390.89. In addition, Microsoft Corporation saw 2.80% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MSFT starting from SMITH BRADFORD L, who sale 75,000 shares at the price of $436.05 back on May 02 ’25. After this action, SMITH BRADFORD L now owns 476,999 shares of Microsoft Corporation, valued at $32,703,925 using the latest closing price.
SMITH BRADFORD L, the Vice Chair and President of Microsoft Corporation, sale 6,000 shares at $433.17 during a trade that took place back on May 05 ’25, which means that SMITH BRADFORD L is holding 471,036 shares at $2,599,020 based on the most recent closing price.
Stock Fundamentals for MSFT
Current profitability levels for the company are sitting at:
- 0.45 for the present operating margin
- 0.69 for the gross margin
The net margin for Microsoft Corporation stands at 0.36. The total capital return value is set at 0.27. Equity return is now at value 33.61, with 18.46 for asset returns.
Based on Microsoft Corporation (MSFT), the company’s capital structure generated 0.16 points at debt to capital in total, while cash flow to debt ratio is standing at 2.16. The debt to equity ratio resting at 0.19. The interest coverage ratio of the stock is 49.43.
Currently, EBITDA for the company is 133.01 billion with net debt to EBITDA at 0.21. When we switch over and look at the enterprise to sales, we see a ratio of 12.05. The receivables turnover for the company is 5.22for trailing twelve months and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.37.
Conclusion
In conclusion, Microsoft Corporation (MSFT) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
