Microsoft Corp. MSFT Stock Analysis

Microsoft Corp. stock trades under the ticker MSFT & has shown recent bullish behavior that traders & investors should research deeper into.

MSFT stock closed at $239.23/share on 1/14/2023.

Microsoft Corp. MSFT Stock’s Technical Performance Broken Down

Microsoft Corp. MSFT Stock's Technical Performance Over The Last Year
Microsoft Corp. MSFT Stock’s Technical Performance Over The Last Year

MSFT Stock Price: $239.23

10 Day Moving Average: $232.52

50 Day Moving Average: $239.84

200 Day Moving Average: $256.79

RSI: 51.68

MACD: -2.601

On Friday, MSFT stock completed a bullish MACD crossover, closing +0.3% on the day.

Despite having decent volume compared to the year prior & 6 straight days of gains, Friday’s hanging man candle implies a bearish movement on the horizon for them, which may offer new entries into positions.

MSFT stock has support at the $233.87 & $232.52/share price level, as they try to break out above the $239.84 & $240.32/share resistance levels.

Microsoft Corp. MSFT Stock As A Long-Term Investment

Long-term oriented investors will like MSFT stock’s 25.75 P/E (ttm), but will find their 10.27 P/B (mrq) to be higher than they’d normally like.

They recently reported 10.6% Quarterly Revenue Growth Y-o-Y, with -14.4% Quarterly Earnings Growth Y-o-Y.

Their balance sheet looks strong, with $107.24B of Total Cash (mrq) & $77.14B of Total Debt (mrq).

MSFT stock pays a 1.06% dividend, which appears to be sustainable in the long-run, with a 26.7% payout ratio.

73.35% of MSFT stock’s outstanding share float is owned by institutional investors.

Microsoft Corp. MSFT Stock As A Short-Term Trade Using Options

Traders who are interested in shorter time frames can use options to profit from MSFT stock’s price movements, while hedging their portfolio against broader market volatility.

I am looking at the contracts with the 2/17 expiration date.

The $235, $230 & $225 calls are all in-the-money, listed in order of highest to lowest level of open interest.

The $240, $245 & $250 puts are also all in-the-money, with the former being more liquid than the latter strikes.

Tying It All Together

MSFT stock has many interesting characteristics that traders & investors should find appealing.

Investors will like their healthy balance sheet & dividend yield.

Traders will like their recent technical performance & their liquid options market.

All-in-all, it is worth taking a closer look into how MSFT stock fits into your portfolio strategy.

*** I DO NOT OWN SHARES OF NOR OPTIONS POSITIONS AROUND MSFT STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***