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Shares of Microsoft Corporation Inc. declined -0.84% during Friday’s session, with shares settling nearly at $58.71. Traded shares reached approximately 28.69 million with SMA 50 (Simple Moving Average) hitting 1.31% and SMA 200 (Simple Moving Average) at 8.94%.  

At present, the tech giant’s market valuation stood at 458.19 billion, while the stock’s one-year high stood at $61.37 and a one-year low of $47.22.  

Analysts’ Recommendation

Among 23 analysts covering Microsoft Corporation, 19 issued “Buy” rating, 1 gave “Sell” rating, and 3 suggested “Hold” rating, which implies about 83% are positive. The highest price target stood at $70, while the lowest is $20.

Meanwhile, the average price objective hit $58.87, posting below the current stock price of $60.18. The mean revenue estimate recorded at $25.28 billion for the quarter ending December 16, issued by 27 analysts.   

Earnings Preview

The company’s earnings per share posted $0.76 amid the last quarter ended on September 30, which topped analysts’ consensus estimate of $0.08 with the unexpected factor about 11.80%.       

Evidently, earnings report could give a huge impact on the company’s stock price. Positive earnings surprises are said to turn into an immediate hike in a stock’s price, but also to a sluggish increase over time.    

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National Pension Service upgraded the company’s shares by about 11.18% based on its latest 2016Q2 regulatory filing with the Securities and Exchange Commission (SEC). Approximately 419,943 shares were bought after the company’s stock posted declines of 7.92%, while the markets skyrocketed.     

The institutional investor held 4.18 million shares of the company at the end of 2016Q2, with a total value of $213.73 million, up from 3.76 million at the end of the previous issued quarter. The National Pension Service is likely in a bullish tone with a market capitalization valuing $464.45, while stocks rallied 2.38% or $1.4 after positive reports, hitting $60.1 per share.    

Subsequently, trading volume reached 4.09 million, citing the tech giant edged higher by 7.61% since April 2016 and is continuing to surge. It has outperformed the S&P 500 by 5.65%.

Institutional Activity

The institutional sentiment declined to 0.99 amid the second quarter of fiscal 2016, down 0.07 from an earlier reading of 1.06 during the first quarter of fiscal 2016. In addition, it has sent the ratio to drop as 100 funds sold all the company’s shares owned while 841 downgraded positions.      

Current Stance of Microsoft Corporation’s Stocks

The chart below illustrates Microsoft Corp. stock’s movement after earnings report turned into positive.

Given a bullish sighting on the company’s stock, it was shown that the stock previously showed an eight-straight decline on October 26 and currently recovered at resistance 60.03 in a heavy trading volume.

Further, the candlestick tried to break out on the upside, almost  hitting above the resistance level.

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Conclusion

As the current stance of Microsoft Corp.’s stocks is in a bullish tone, we conclude that investors’ are now seeing an opportunity after earnings results turned into positive.

Moreover, market players should still wait on the sidelines until a supporting candle shows up.   

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