Microsoft Stock Makes Moves on Quarterly Win

No fewer than 10 analysts have raised their price targets

Assistant Editor
Apr 30, 2020 at 10:53 AM
facebook twitter linkedin


Shares of blue-chip Microsoft Corporation (NASDAQ:MSFT) are up 0.9% to trade at $179.09 this morning, after the company reported an upbeat fiscal third-quarter report. The tech giant announced profits of $1.40 per share and revenue of $35.02 billion -- both topping Wall Street's estimates. Following the news, no fewer than 10 analysts have raised their price targets, including Wedbush to $220 from $210. 

Microsoft stock has been on a steady rebound after falling to its late-March lows, but is now seeing pressure at the $180 ceiling. However, countering this overhead resistance is the equity's 20-day trendline. Up 13.7% in the last month, MSFT now boasts a 40.3% gain year-over-year. 

Analysts are overwhelmingly bullish coming into today, with 22 of 23 sporting a "buy" or "strong buy" rating, with the remaining considering a tepid "hold." Meanwhile, the 12-month consensus price target of $192.58 is a 7.3% premium to current levels. 

Regardless, now looks like an affordable time to jump aboard MSFT with options. This is per the stock's Schaeffer's Volatility Index (SVI) of 40%, which sits in the low 29th percentile of its annual range, implying that near-term options traders are pricing in relatively low volatility expectations.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners