Time to Sell Microsoft Corporation After Today’s Option Traders Bearish Bets?

 Time to Sell Microsoft Corporation After Today's Option Traders Bearish Bets?

In today’s session Microsoft Corporation (MSFT) recorded an unusually high (6,027) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious MSFT decrease. With 6,027 contracts traded and 84324 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: MSFT170120P00048000 closed last at: $0.47 or 9.3% up. About 10.76M shares traded hands. Microsoft Corporation (NASDAQ:MSFT) has risen 7.99% since March 14, 2016 and is uptrending. It has outperformed by 2.38% the S&P500.

Analysts await Microsoft Corporation (NASDAQ:MSFT) to report earnings on October, 27. They expect $0.68 earnings per share, up 1.49% or $0.01 from last year’s $0.67 per share. MSFT’s profit will be $5.34B for 21.02 P/E if the $0.68 EPS becomes a reality. After $0.69 actual earnings per share reported by Microsoft Corporation for the previous quarter, Wall Street now forecasts -1.45% negative EPS growth.

Microsoft Corporation (NASDAQ:MSFT) Ratings Coverage

Out of 23 analysts covering Microsoft Corporation (NASDAQ:MSFT), 17 rate it a “Buy”, 1 “Sell”, while 5 “Hold”. This means 74% are positive. Microsoft Corporation has been the topic of 59 analyst reports since July 22, 2015 according to StockzIntelligence Inc. The stock of Microsoft Corporation (NASDAQ:MSFT) has “Overweight” rating given on Wednesday, January 6 by Barclays Capital. William Blair initiated the shares of MSFT in a report on Tuesday, July 19 with “Market Perform” rating. UBS maintained the stock with “Buy” rating in Monday, August 29 report. Oppenheimer maintained the shares of MSFT in a report on Friday, August 7 with “Buy” rating. Nomura maintained the shares of MSFT in a report on Tuesday, April 19 with “Buy” rating. On Friday, October 23 the stock rating was upgraded by Bank of America to “Buy”. On Monday, November 30 the stock rating was upgraded by Raymond James to “Strong Buy”. The rating was maintained by Cowen & Co with “Market Perform” on Friday, April 1. The stock has “Overweight” rating given by Piper Jaffray on Tuesday, November 10. The company was maintained on Monday, November 23 by UBS.

According to Zacks Investment Research, “Microsoft is a technology company. Their products include operating systems for computing devices, servers, phones, and other intelligent devices; server applications for distributed computing environments; cross-device productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. They also design and sell hardware including PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. They offer cloud-based solutions that provide customers with software, services, platforms, and content. They also provide consulting and product and solution support services, and they train and certify computer system integrators and developers.”

Insitutional Activity: The institutional sentiment decreased to 0.99 in 2016 Q2. Its down 0.07, from 1.06 in 2016Q1. The ratio turned negative, as 100 funds sold all Microsoft Corporation shares owned while 841 reduced positions. 97 funds bought stakes while 836 increased positions. They now own 5.44 billion shares or 3.78% less from 5.66 billion shares in 2016Q1.
Weik Investment Services, a Pennsylvania-based fund reported 110,385 shares. Connable Office last reported 62,670 shares in the company. The Minnesota-based Advantus Cap Mngmt has invested 1.11% in Microsoft Corporation (NASDAQ:MSFT). Greatmark Invest Prtn has invested 4.17% of its portfolio in Microsoft Corporation (NASDAQ:MSFT). The Texas-based Academy Capital Mgmt Inc Tx has invested 3.79% in Microsoft Corporation (NASDAQ:MSFT). Affinity Wealth Mngmt reported 4,231 shares or 0.15% of all its holdings. Partner Fund Mgmt Limited Partnership holds 1.58% of its portfolio in Microsoft Corporation (NASDAQ:MSFT) for 1.03M shares. Proshare Limited Com owns 3.41 million shares or 2.25% of their US portfolio. Metropolitan Life Company Ny holds 1.68% or 4.40M shares in its portfolio. Schnieders Mngmt Limited holds 49,581 shares or 1.42% of its portfolio. Guinness Atkinson Asset Inc owns 4,970 shares or 0.16% of their US portfolio. Oak Ridge Invests Ltd Llc last reported 0.53% of its portfolio in the stock. Knott David M holds 0% of its portfolio in Microsoft Corporation (NASDAQ:MSFT) for 68,750 shares. Howard Capital owns 318,783 shares or 3.13% of their US portfolio. Mig Capital holds 4.02% of its portfolio in Microsoft Corporation (NASDAQ:MSFT) for 361,600 shares.

Insider Transactions: Since April 26, 2016, the stock had 0 insider purchases, and 10 selling transactions for $1.74 billion net activity. Shares for $301,830 were sold by Capossela Christopher C. Morfit G Mason had sold 18.00 million shares worth $1.01 billion. Another trade for 120,000 shares valued at $6.94M was sold by Hood Amy. 7,000 shares with value of $359,686 were sold by BROD FRANK H on Tuesday, April 26. $139.85M worth of shares were sold by GATES WILLIAM H III on Thursday, July 21. $875,768 worth of Microsoft Corporation (NASDAQ:MSFT) was sold by Hogan Kathleen T on Thursday, May 5. Nadella Satya had sold 143,000 shares worth $8.29M.

Microsoft Corporation is a technology company. The company has a market cap of $449.41 billion. The Firm develops, licenses and supports a range of software products, services and devices. It has a 27.2 P/E ratio. The Company’s divisions are Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

MSFT Company Profile

Microsoft Corporation, incorporated on September 22, 1993, is a technology company. The Firm develops, licenses and supports a range of software products, services and devices. The Company’s divisions are Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Company’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers. The Firm also designs, makes and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories, which integrate with its cloud offerings. The Firm offers an array of services, including cloud solutions that provide clients with software, services, platforms, and content, and the Company provides solution support and consulting services. The Firm also delivers relevant online advertising to a global audience. As of June 30, 2016, the Company operated in 190 countries throughout the world.

More notable recent Microsoft Corporation (NASDAQ:MSFT) news were published by: Investorplace.com which released: “Trade of the Day: Microsoft Corporation (NASDAQ:MSFT)” on October 17, 2016, also Etfdailynews.com with their article: “Under Nadella, Microsoft Employees are Now Happier Than Apple Employees” published on October 17, 2016, Benzinga.com published: “Azure Continues To Drive Microsoft Corporation; Goldman Expects Above …” on October 17, 2016. More interesting news about Microsoft Corporation (NASDAQ:MSFT) were released by: Profitconfidential.com and their article: “Microsoft Corporation: This Is a Big Threat to MSFT Stock” published on October 12, 2016 as well as Investorplace.com‘s news article titled: “What Microsoft Corporation’s ‘Whisper” Earnings Mean for MSFT Stock” with publication date: October 17, 2016.

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