Microsoft Stock (MSFT) Falls Over 4% – Investors react to unexplained fall


Shares of Microsoft Corporation (NASDAQ:MSFT) have taken quite a tumble today, even though there has been no negative news to report on concerning the company. More than likely the response is a counter-reaction to FANG (Facebook, Amazon, Netflix and Google) getting driven down as of late, although it is hard to argue that Microsoft would fit into this same category. Other investsors are wondering if perhaps several insider sales lately has something ot do with it. On February 2, Bill Gates sold 2 million shares and the day prior he sold 1 million. The value of these shares alone was over $160 million.

Wall Street and Investors are reacting today to the tumbling share price of Microsoft Corporation (NASDAQ:MSFT). One investor wrote:

“Great time to buy after being down all week. Ex-Dividend coming up in a couple weeks.”

Another investor speculated, “Still not considered a true cloud play by the market. Market still thinks they make PCs.”

Regardless, the stock is down, and while some look at it as being a sign of a potentially faltering economy, others look at it as a perfect time to jump on board. The stock is down 4.15% or $2.16 following the news, hitting $49.84 per share. Approximately 31.58M shares traded hands. MSFT shares have risen 16.99% since July 1, 2015 and are currently uptrending. It has outperformed the S&P500 by 24.28%.

From a total of 20 analysts covering Microsoft Corporation (NASDAQ:MSFT) stock, 15 rate it a “Buy”, 2 a “Sell”, and 3 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $66 while the lowest target price is $20. The mean of all analyst targets is $57.05 which is 14.47% above today’s ($49.84) stock price. Microsoft Corporation was the topic of 46 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. UBS maintained shares on January 29 with a “Buy” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $47.60 target share price in their report from a September 2. Wunderlich maintained MSFT stock in a recent report from January 29 with a “Hold” rating. Global Equities Research maintained the rating on August 28. Global Equities Research has a “Overweight” rating and a $50 price target on shares. Finally, Barclays Capital maintained the stock with a “Overweight” rating in a report they issued on a January 6.

The institutional sentiment increased to 1.08 in Q2 2015. It’s up 0.32, from 0.76 in 2015Q2. The ratio is positive, as 69 funds sold all their Microsoft Corporation shares they owned while 801 reduced their positions. 93 funds bought stakes while 843 increased their total positions. Institutions now own 5.20 billion shares which is 8.27% less than the previous share count of 5.67 billion in 2015Q2.

Cook & Bynum Capital Management Llc holds 25.5% of its total portfolio in Microsoft Corporation, equating to 717,081 shares. Rwwm Inc. owns 895,414 shares representing 19.69% of their total US portfolio. Moreover, Valueact Holdings L.P. has 19.37% of their total portfolio invested in the company, equating to 75.27 million shares. The California-based Smithwood Advisers L.P. has a total of 17.28% of their portfolio invested in the stock. Deccan Value Investors L.P., a Connecticut-based fund reported 2.26 million shares owned.

Microsoft Corporation is engaged in developing, licensing and supporting a range of software services and products. The company has a market cap of $407.12 billion. The Firm also creates and sells hardware, and delivers online advertising to the customers. It has 35.49 P/E ratio. The Firm operates in five divisions: Devices and Consumer Licensing, D&C Hardware, D&C Other, Commercial Licensing, and Commercial Other.