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Killexams : Microsoft Fundamentals learn - BingNews https://killexams.com/pass4sure/exam-detail/MB-910 Search results Killexams : Microsoft Fundamentals learn - BingNews https://killexams.com/pass4sure/exam-detail/MB-910 https://killexams.com/exam_list/Microsoft Killexams : The Two Sides of Microsoft: Strong Fundamentals vs. Insiders' Selling Activity

First published on Simply Wall St News

Summary:

  • MSFT has superior fundamentals, including a 36.7% profit margin, estimated earnings growth of 11% p.a.

  • Analysts and our valuation model suggest that the company has 43% and 37% upside, respectively.

  • Insider selling activity warrants a more cautious approach when analyzing the company, as there are likely things insiders understand better about the business.

Microsoft (NASDAQ:MSFT) lost 19.4% of its market cap despite exhibiting some strong fundamental qualities. The company seems to be growing the top line, as well as scaling margins. We analyzed the company to see if the decline is warranted for the $1.7t market cap stock and came up with some mixed results.

Check out our latest analysis for Microsoft

Evaluating The Fundamentals

If we look at our company report, we find a number of quality markers that are rare in other companies. Here is a rundown of Microsoft's key fundamental benefits:

Trading at 37.3% Below Our Estimate of Its Fair Value

Using a discounted cash flow valuation model, we estimate that the company's intrinsic value is worth $2.7t. It seems that the price of risk has been pressuring the stock in the past year. However, the free cash flows are expected to grow to between $125b and $150b in the next decade, which could potentially make the stock attractive again once market risk settles down.

Earnings Grew by 18.7% YoY, and are Forecasted to Grow 11.33% Annually

Microsoft has a solid track-record of earnings growth in the past. The company has successful projects internally with the cloud growth, as well as executing well on growth by acquisitions such as the LinkedIn back in 2016.

The chart below illustrates the successful growth story for Microsoft:

msft-growh

The company has also managed to scale the net profit margin from 28.3% in 2019 to 36.7% in the last 12 months. Producing higher profits while growing revenue is a hallmark sign of value creation.

Trading at Good Value vs. the Peer Average Price-To-Earnings Ratio

Microsoft's peers are trading at an average price to earnings ratio of 19.7x, while the company is currently trading at a 23.9x PE. As earnings are expected to grow 11.3% in the next 12 months, this brings the forward PE to 23x. A PE above 17.4x implies a premium on the 5-year market average, but may be justified given the size and stability of Microsoft.

Analysts in Good Agreement for a 43.3% Upside

The average 1-year price target for Microsoft is $333.8 per share, and the 42 analysts covering the company seem to be in good agreement, with less than a 15% spread between estimates. The chart below shows that analysts are still bullish on the stock's performance:

msft-price-targets

In summary, we can see that Microsoft's fundamentals have a wide margin and are expected to keep growing in the future. Analysts are also in agreement that the stock price has been underperforming, which is in-line with our valuation estimates.

However, there are some things that the fundamentals can't tell us, and we can use other sources to double-check our assumptions.

A Wedge in the Story

In general, we want to see congruence between a company's fundamentals and the trading activity of people who know the stock inside-out. The assumption is that these insiders know more about the future of a business than analysts who have limited access to information.

When insiders are selling or buying stock in their company, it is always a good signal to pay attention to. We always expect a certain amount of insider activity, but ideally we would like that activity to be random, and disconnected with the movement of the stock. However, when we have an insider such as the CEO Satya Nadella, top ticking $285m worth of shares, at an average of $349 per share, we start wondering if this is a result of his judgement on the business potential. To be clear, the selling decision may have also been made for other reasons such as the anticipation of a worsened macro environment, which evidently happened after 2021.

Looking at the big picture, we see that Microsoft insiders sold more than they bought over the last year.

You can see the insider transactions (by companies and individuals) over the last year, depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

If this dampens your interest, you can check out the other side of the spectrum with this free list of growing companies that insiders are buying.

The last three months saw significant insider selling at Microsoft. In total, insiders dumped $21m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Conclusion

While the fundamentals remain strong for Microsoft, it seems that the macro environment may be keeping both investors and insiders on the sidelines for the stock. When analyzing a stock like Microsoft, we want to see consistency between the fundamentals, investors' expectations on risk and the behavior of top management.

If you preferred to check out other companies, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Simply Wall St analyst Goran Damchevski and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Mon, 03 Oct 2022 02:18:00 -0500 en-US text/html https://www.aol.com/news/two-sides-microsoft-strong-fundamentals-133216200.html
Killexams : Cybersecurity awareness tips from Microsoft to empower your team to #BeCyberSmart

October is Cybersecurity Awareness Month, and I’m excited about what Microsoft and our partners in the industry have planned to help everyone stay #CyberSmart. 2022 may have offered some respite from the previous year’s rush to enable a remote and hybrid workforce, but the increased use of personal devices also left security professionals with even more endpoints to manage and secure. As illustrated by breaches like the March 2022 attack on Shields Health Care Group1 that impacted two million people and the April ransomware attack that became a national emergency for the Costa Rican government,2 we all need to be cyber defenders to protect what matters.

Technology can only do so much; it’s people who remain our greatest strength. That’s why Microsoft is taking this opportunity during Cybersecurity Awareness Month to help security professionals educate their employees on fundamentals highlighted by the National Cybersecurity Alliance, such as protecting their identities, updating their software and devices, and not falling prey to phishing schemes.3 Be sure to explore the resources and skilling opportunities in our Cybersecurity Awareness Month website, such as the #BeCyberSmart education kit with assets to help people to protect their data both at work and at home.

People have become the primary attack vector for cyber attackers around the world, so humans rather than technology now represent the greatest risk to organizations.

SANS 2022 Security Awareness Report

Security starts with awareness

In today’s boundaryless workplace, comprehensive security is essential. That kind of 360-degree protection requires education and awareness to safeguard identities, data, and devices. Awareness programs help enable security teams to effectively manage their human risk by changing how people think about cybersecurity and helping them practice secure behaviors. The SANS 2022 Security Awareness Report analyzed data from more than a thousand security professionals from around the world to identify how organizations are managing their human risk. The report found that more than 69 percent of security awareness professionals are part-time, meaning that they spend less than half their time on security awareness.

According to the SANS report, cybersecurity awareness professionals should endeavor to:

  • Engage leadership by focusing on terms that resonate with them and demonstrate support for their strategic priorities. “Don’t talk about what you are doing, talk about why you are doing it.”
  • Consider having a 10-to-1 ratio of technical security professionals to human-focused security professionals.
  • Partner with other departments in the organization—such as communications, human resources, and business operations—to help engage and communicate with your workforce.
  • Make the training simple to understand and follow. “Just like working out—it’s the frequency that’s important.” And dedicate time to collecting information about the impact of your awareness programs.

It’s up to each of us to #BeCyberSmart

In 2022, the most common causes of cyberattacks are still malware (22 percent) and phishing (20 percent).4 Even with the rise of ransomware as a service (RaaS) and other sophisticated tools, human beings remain the most reliable, low-cost attack vector for cybercriminals worldwide. For that reason, it’s vital that we all stay informed about how to prevent breaches and defend ourselves, both at work and at home.

Security practitioner authenticating access on a Surface tablet while preparing to work from home.

Here are some basic steps we can all take to #BeCyberSmart:

Phishing: Deceptive emails, phony websites, fake text messages—these kinds of phishing scams accounted for 30 percent of attacks in 2021.5 During Terranova’s annual Gone Phishing Tournament last year, 19.8 percent of participants clicked on the phishing email link, while 14.4 percent downloaded the fake document.6 So, how can we avoid taking the bait?

  • Check the sender’s email address for verifiable contact information. Common phishing tip-offs include a misspelled or unrelated sender address. If in doubt, do not reply. Instead, create a new email to respond.
  • Don’t click on links or open email attachments unless you have Checked the sender.
  • For more tips, visit the Federal Trade Commission phishing site.

Devices and software: Unpatched, out-of-date devices and software are a leading access point for cybercriminals. That’s why practicing good cyber hygiene is so important for avoiding destructive malware that can steal users’ personal information. To help keep your devices safe:

  • Enable the lock feature on all your mobile devices.
  • Activate multifactor authentication on your sensitive apps and accounts.
  • Run antivirus software and install system updates immediately.

Scams: Criminals will often contact you seeking to “fix” a nonexistent problem. The email or text message will contain a sense of urgency, such as “Act now to avoid having your account locked!” If you see this type of message, do not click the link. And remember to always report any suspected scam so the organization can take action. A few tips to remember:

  • Be skeptical of unsolicited tech support calls or error messages requesting urgent action.
  • Do not follow any prompts to obtain software from any third-party website.
  • When in doubt, open a separate browser page and go directly to the company’s webpage.

Passwords: Passwords are our first line of defense against unauthorized access to accounts, devices, and files. However, the average person now has more than 150 online accounts; password fatigue is always a danger. Some tips on how to protect your passwords include:

Fostering a more diverse cybersecurity workforce

As of April 2022, there are more than 700,000 vacant cybersecurity positions in the United States, with a predicted 3.5 million cybersecurity positions going unfilled worldwide by 2025.7 That’s why Microsoft continues to reach out to students, veterans, people re-entering the workforce—anyone with an interest in becoming a cybersecurity defender. This year for Cybersecurity Awareness Month, we’re also acting on Microsoft’s initiatives to increase cybersecurity education access and help close the workforce gap. In partnership with the Last Mile Education Fund, Microsoft aims to reach at least 25,000 students by 2025 with scholarships and additional resources related to cybersecurity pathways.  

On October 7, 2022, we’re again hosting the Microsoft Student Summit, a virtual skills event designed to inspire higher education students toward a career in tech. This one-day event offers students the opportunity to engage with the Microsoft student developer community, hopefully providing inspiration and stoking a passion for innovation. We’re also continuing to help students move into real-world employment by offering learning sessions aligned to Microsoft certifications for security, compliance, and identity. Eligible students can take up to eight fundamental certification exams for free this academic year.

Helping to create the next generation of cybersecurity defenders is critically important, and we want to make sure the doors are open to everyone. That’s why we’re continuing our partnership with Girl Security, helping to empower adolescent girls, women, and gender minorities by demystifying cybersecurity and developing the in-demand skills needed for employment. Microsoft is also partnering with other organizations to leverage the message from this moment in October 2022 to bring more women to the industry, with a Community College Pathways to Cybersecurity Success webinar with Women in Cybersecurity (WiCys) and a virtual event with the Executive Women’s Forum focused on cybersecurity careers at Microsoft.

We’re always working on new educational initiatives, so stay tuned to our Security blog and check for updates on our cybersecurity awareness and education website.

Stay cyber smart year-round

Cybersecurity Awareness Month is a special time for us as we collectively come together—industry, academia, and government—to promote the importance of a secure online environment. We know that cybercriminals are persistent and driven, working all day, every day with no days off. That’s why we need to work together on awareness and education year-round and build a culture of cyber defenders. Please continue to visit our cybersecurity awareness and education website to learn more about cybersecurity education programs from Microsoft, and get our new cybersecurity education kit to use in your organization. Everyone has a role to play in cybersecurity, and when we learn together, we are more secure together.

Learn more

Explore our best practices and educational resources with our Cybersecurity Awareness website.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us at @MSFTSecurity for the latest news and updates on cybersecurity.


1Shields Health Care Group data breach affects 2 million patients, Bill Toulas. June 7, 2022.

2A massive cyberattack in Costa Rica leaves citizens hurting, Carla Rosch. June 1, 2022.

3National Cybersecurity Alliance.

4Alarming Cyber Statistics For Mid-Year 2022 That You Need To Know, Chuck Brooks. June 3, 2022.

5Verizon 2021 Data Breach Investigation Report, Verizon. 2021.

6Gone Phishing Tournament, Terranova Security.

7Cybersecurity Jobs Report: 3.5 Million Openings In 2025, Cybersecurity Ventures. November 9, 2021.

Tue, 04 Oct 2022 04:00:00 -0500 en-US text/html https://www.microsoft.com/security/blog/2022/10/04/cybersecurity-awareness-tips-from-microsoft-to-empower-your-team-to-becybersmart/
Killexams : The First 4 Fundamentals About Consciousness and the Brain

Every fall, new students join the lab, eager to learn about consciousness and the brain. At this time of the year, I always ask myself, "What are the fundamental ideas about consciousness and the brain that should be taught first?" I always find myself revising, updating, streamlining, and making clearer the ideas in introductory lectures and the lab manual (Morsella, 2022). Below are the four fundamentals that, over the years, have always been presented first, both in the manual and in lab discussions.

The first thing to learn is what a “conscious content” is. Any particular thing one is conscious of has been referred to as a “conscious content.” A conscious content could be the sight of a coffee cup, an afterimage, a song that keeps playing in one’s mind, a percept, an urge (e.g., to scratch a sunburn), the smell of an ice cream sundae, or an autobiographical memory (e.g., memory of last summer’s camping trip).

The term “conscious content” refers to the most basic form of consciousness: If a creature is capable of having an experience of any kind—pain, nausea, a pleasant dream, or the sound of a bell—then it possesses this basic form of consciousness (Morsella, 2022). In short, to have an experience of any kind is to have some kind of conscious content. Sometimes people refer to this kind of basic consciousness as “awareness,” which means the same thing: Being aware of a cup or ringing in the ears is to experience these conscious contents.

The second thing to learn is the term “conscious field.” The conscious field is made up of all the conscious contents that are activated at one moment in time: the sight of an ice cream sundae plus the smell of coffee plus the feeling of the chair on which one is sitting plus the song that one cannot get out of one’s mind plus the memory of the doctor reminding one to cut down on sweets.

We are not aware of, and have no conscious contents for, many things going on in the brain or body—peristalsis in the gut, how the pupils in the eye are controlled, and many other activities in the nervous system (e.g., motor and syntactic programming). These processes are said to be unconscious. There is usually no experience about them. We know of these processes mainly through reading about them in textbooks. We have no direct experience about them. In short, “unconscious events are those processes that, though capable of systematically influencing behavior, cognition, motivation, and emotion, do not influence the organism’s subjective experience in such a way that the organism can directly detect, understand, or self-report the occurrence or nature of these events” (from Morsella & Bargh, 2011).

Knowledge of unconscious process leads to the third important fundamental about consciousness and the brain: Not all brain processes and regions are associated with consciousness. Consciousness is associated with only a subset of the regions and processes. Researchers are attempting to home in on these circuits associated with consciousness (e.g., Morsella et al., 2016; Morsella, 2022).

The fourth fundamental is an observation that holds some clues about why one needs a fully operational conscious field, one in which many conscious contents are presented: Each conscious content activates brain processes, including, to some extent, behavioral inclinations. Consider the classic Stroop task (Stroop, 1935). In the task, subjects are instructed to name the color in which a word is written. When the word and color are incongruent (e.g., RED presented in blue), “response conflict” leads to increased error rates and response times. The response conflict arises because, though one intends to name only the color in which the word is printed, the stimulus (RED) activates involuntarily the “word reading” action plan (to utter “red”).

Because conscious contents can activate processes that influence behavior, it is essential that one conscious content (e.g., a tasty ice cream sundae) not be presented alone to have too much influence on behavior. Such a monopoly would not lead to adaptive behavior. Each content should be “checked” by other conscious contents (e.g., the memory that the doctor recommended cutting down on sweets). (This is called a “frame check”; Morsella et al., 2016.) Because voluntary behavior is influenced by the many conscious contents in the field, we respond to a given stimulus (the tasty sundae) not in isolation but in light of the other contents (e.g., memory of doctor) composing the conscious field.

With these four fundamentals, incoming students not only understand new terms but also begin to appreciate the important role of the conscious field in yielding adaptive actions that are context-sensitive. Over the years, these four fundamentals have consistently appeared at the beginning of the lab manual (Morsella, 2022), and I can’t foresee an introduction to the lab without them.

Tue, 11 Oct 2022 12:14:00 -0500 en-US text/html https://www.psychologytoday.com/us/blog/consciousness-and-the-brain/202210/the-first-4-fundamentals-about-consciousness-and-the-brain
Killexams : Breast cancer awareness fundamentals

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Thu, 13 Oct 2022 19:16:00 -0500 en text/html https://www.baxterbulletin.com/stories/breast-cancer-awareness-fundamentals,30321
Killexams : “Get ‘em!” UTSA students learn self-defense fundamentals with some loud practice

One by one, the 16 students threw jabs at the necks of practice dummies, screaming “Get back!” or “Leave me alone!”

In the moment, it seemed silly, and the gym at the University of Texas at San Antonio was filled with laughter and smiles. But it had a serious undertone.

The participants in Wednesday’s free self-defense class, mostly women, were learning the “dirty dozen” fighting tactics from police officers.

“If you get in a car with someone, you’ve lost the fight,” said Sgt. Leonicio Moreno of the Bexar County Pct. 2 Constable’s Office.

A third-degree black belt in tang soo do, a Korean martial art, Moreno considered this hour and a half a “crash course” because his classes generally take three to four hours.

The training is relatively new at UTSA, especially at this interactive level, and it was ramped up last spring at the request of students, said Melody Erickson, a UTSA Police Department community affairs officer.

“Last class, girls were talking about crazy ex-boyfriends stalking them where they are, where they live and they weren’t even from the same town,” said Eric Rubio, a UTSA PD officer who directs the program.

The self-defense class was part of the programming for Domestic Violence Awareness Month by the PEACE Center at UTSA, a campus resource working to stop sexual violence. It will culminate with a Take Back the Night gathering on Tuesday that will have an open mic for survivors to share their stories, said Melissa Hernandez, the associate dean of students for Wellbeing Services.

The PEACE Center informs students on how to report incidents and offers counseling, art therapy and yoga. It was established on campus in 2018.

The same year, campus activists questioning the adequacy of UTSA’s response to sexual assaults prompted the university to hire a law firm to make sure it was complying with federal Title IX requirements.

READ MORE: UTSA students’ push against ‘rape culture’ has murky aftermath

An earlier study across the University of Texas System, which included results of a 2015 survey of UTSA students, documented a need to institutionalize violence prevention, Hernandez said.

“The task forces established a need for victims to have dedicated support,” she said. “Each year since, we’ve seen growth in those services.”

Not all incidents are reported. University data from 2019 to 2021 showed the cases of dating violence reported to any university office or UTSA police had changed little, ranging from six to eight. Incidents of domestic violence dropped from seven to just one report in 2021, and reports of stalking fell from 38 to 18.

Instructor Leonicio Moreno demonstrates several different kicks during a self-defense class at the University of Texas at San Antonio on Wednesday. (Kaylee Greenlee Beal/Contributor)

Instructor Leonicio Moreno demonstrates several different kicks during a self-defense class at the University of Texas at San Antonio on Wednesday. (Kaylee Greenlee Beal/Contributor)

Kaylee Greenlee Beal

Rubio said he’s heard from parents thinking about students who were going to be living away from home for the first time, especially with crime rates up in San Antonio since the pandemic.

“This is a fairly safe campus, but crime happens in San Antonio, and it can infiltrate here,” Erickson said while giving safety tips at the start of Wednesday’s class.

Walk without headphones, she suggested — and without daydreaming about a date or a test because you’re more likely to panic if something bad happens while you’re oblivious to your surroundings.

The preferred mental state is what Moreno called “condition yellow,” not paranoid but aware of one’s surroundings.

“If a stranger comes up to you asking for directions, don’t point and turn your head in that direction, just point,” Moreno said.

Required Reading: Get San Antonio education news sent directly to your inbox

Walking home, students should never put their exact address into a maps app — use a location nearby, so if someone were to steal the phone, they wouldn’t know where the owner lived, Moreno said.

The dirty dozen was taught as a series of moves that can be memorized and used to escape from an attacker. Participants tried the moves on dummies — short and tall. It was getting loud.

“Do you get to choose how big your opponent is?” asked Moreno. “No!” yelled the students in reply.

He instructed them to strike below the rib cage and not to hit the top of the head, as that might backfire and break the victim’s hand.

As the setting sun reflected through the windows onto the gym’s waxed floor, the fighting began. Public safety officer Juan Carlos “J.C.” Martinez was the live punching bag for all 16 students, wearing full padding that including a helmet shielding his face.

Each student fought him for between 30 to 60 seconds. Martinez didn’t fight back but inched toward the students, invading their personal space and getting as close as an attacker might.

The students cheered on their classmates with shouts of “Let’s go!” and “Get ’em!” The confidence gained was visible. The most popular moves were the repeated knee to the groin and finger jabs to the eyes. One student asked Martinez if he was OK — while continuing to throw punches.

He nodded and they kept going; her time wasn’t up yet.

In the real world, 30 seconds isn’t a realistic duration, Rubio said. It takes up to two and a half minutes, on average, for police to get to a student when they’re called to an on-campus location.

“That’s a long window when you’re a victim of something,” Rubio said. “This class will provide them the tools to escape or defend themselves until we arrive.”

Julianna Galindo, 19, an exploratory studies major, found her 30 seconds a blur. Galindo lives on her own, and she and her friend signed up for the class to feel more confident.

“Coming home late from work or practice, I wouldn’t know how to defend myself if something happened,” she said. “I feel safe during the day, but walking from the parking lot to the dorm at night is different.”

Alyssa Alvarado, 23, said she didn’t remember what she was thinking, but she did channel her anger when sparring with Martinez.

“Today I watched the film ‘Luckiest Girl Alive.’ It was emotional — it had to do with rape and a school shooting. I think I got anger from there,” said Alvarado, who studies biology and criminology. “There are a lot of bad things happening in the world.”


elizabeth.sander@hearst.com

Thu, 13 Oct 2022 21:06:00 -0500 en-US text/html https://www.expressnews.com/news/local/article/UTSA-students-learn-self-defense-17508084.php
Killexams : The Two Sides of Microsoft: Strong Fundamentals vs. Insiders' Selling Activity

First published on Simply Wall St News

Summary:

  • MSFT has superior fundamentals, including a 36.7% profit margin, estimated earnings growth of 11% p.a.

  • Analysts and our valuation model suggest that the company has 43% and 37% upside, respectively.

  • Insider selling activity warrants a more cautious approach when analyzing the company, as there are likely things insiders understand better about the business.

Microsoft (NASDAQ:MSFT) lost 19.4% of its market cap despite exhibiting some strong fundamental qualities. The company seems to be growing the top line, as well as scaling margins. We analyzed the company to see if the decline is warranted for the $1.7t market cap stock and came up with some mixed results.

Check out our latest analysis for Microsoft

Evaluating The Fundamentals

If we look at our company report, we find a number of quality markers that are rare in other companies. Here is a rundown of Microsoft's key fundamental benefits:

Trading at 37.3% Below Our Estimate of Its Fair Value

Using a discounted cash flow valuation model, we estimate that the company's intrinsic value is worth $2.7t. It seems that the price of risk has been pressuring the stock in the past year. However, the free cash flows are expected to grow to between $125b and $150b in the next decade, which could potentially make the stock attractive again once market risk settles down.

Earnings Grew by 18.7% YoY, and are Forecasted to Grow 11.33% Annually

Microsoft has a solid track-record of earnings growth in the past. The company has successful projects internally with the cloud growth, as well as executing well on growth by acquisitions such as the LinkedIn back in 2016.

The chart below illustrates the successful growth story for Microsoft:

msft-growh

The company has also managed to scale the net profit margin from 28.3% in 2019 to 36.7% in the last 12 months. Producing higher profits while growing revenue is a hallmark sign of value creation.

Trading at Good Value vs. the Peer Average Price-To-Earnings Ratio

Microsoft's peers are trading at an average price to earnings ratio of 19.7x, while the company is currently trading at a 23.9x PE. As earnings are expected to grow 11.3% in the next 12 months, this brings the forward PE to 23x. A PE above 17.4x implies a premium on the 5-year market average, but may be justified given the size and stability of Microsoft.

Analysts in Good Agreement for a 43.3% Upside

The average 1-year price target for Microsoft is $333.8 per share, and the 42 analysts covering the company seem to be in good agreement, with less than a 15% spread between estimates. The chart below shows that analysts are still bullish on the stock's performance:

msft-price-targets

In summary, we can see that Microsoft's fundamentals have a wide margin and are expected to keep growing in the future. Analysts are also in agreement that the stock price has been underperforming, which is in-line with our valuation estimates.

However, there are some things that the fundamentals can't tell us, and we can use other sources to double-check our assumptions.

A Wedge in the Story

In general, we want to see congruence between a company's fundamentals and the trading activity of people who know the stock inside-out. The assumption is that these insiders know more about the future of a business than analysts who have limited access to information.

When insiders are selling or buying stock in their company, it is always a good signal to pay attention to. We always expect a certain amount of insider activity, but ideally we would like that activity to be random, and disconnected with the movement of the stock. However, when we have an insider such as the CEO Satya Nadella, top ticking $285m worth of shares, at an average of $349 per share, we start wondering if this is a result of his judgement on the business potential. To be clear, the selling decision may have also been made for other reasons such as the anticipation of a worsened macro environment, which evidently happened after 2021.

Looking at the big picture, we see that Microsoft insiders sold more than they bought over the last year.

You can see the insider transactions (by companies and individuals) over the last year, depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

If this dampens your interest, you can check out the other side of the spectrum with this free list of growing companies that insiders are buying.

The last three months saw significant insider selling at Microsoft. In total, insiders dumped $21m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Conclusion

While the fundamentals remain strong for Microsoft, it seems that the macro environment may be keeping both investors and insiders on the sidelines for the stock. When analyzing a stock like Microsoft, we want to see consistency between the fundamentals, investors' expectations on risk and the behavior of top management.

If you preferred to check out other companies, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Simply Wall St analyst Goran Damchevski and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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MB-910 exam dump and training guide direct download
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