LSEG Stock Report On MSFT

MICROSOFT CORP (MSFT-O)
Software & IT Services / Software & IT Services / Software DETAILED STOCK REPORT
Report Date: 2024-Mar-08
Last Close Avg Daily Vol 52-Week High Trailing PE Annual Div ROE LTG Forecast 1-Mo Return
409.14 (USD) 21.1M 420.82 37.0 3.00 39.2% 16.3% -1.2%
2024 March 07 Market Cap 52-Week Low Forward PE Dividend Yield Annual Rev Inst Own 3-Mo Return
NASDAQ Exchange
3.1T 245.73 33.6 0.7% 227.6B 73.8% 10.3%
AVERAGE SCORE
POSITIVE OUTLOOK: MSFT's current score of Score Averages
8 places it among the top quartile of stocks Software & IT Services Group: 5.2 Mega Market Cap: 6.8
scored. Software & IT Services Sector: 5.2 S&P 500 Index: 6.8
Average Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive MSFT 6 9 9 8 8
SNPS 7 10 9 9 8
Neutral CDNS 7 8 7 6 6
PLTR 5 5 5 5 6
Negative
TTD 6 4 5 6 6
2021-03 2022-03 2023-03 2024-03
HIGHLIGHTS I/B/E/S MEAN

- The score for Microsoft Corp last changed from 9 to 8 on
2024-02-11. Buy Mean recommendation from all analysts covering
57 Analysts the company on a standardized 5-point scale.
- The recent change in the Average Score was primarily due to a
decline in the Insider Trading component score.
Strong Strong
Sell Hold Buy
Sell Buy
PRICE AND VOLUME CHARTS

1-Year Return: 61.0% 5-Year Return: 271%
BUSINESS SUMMARY
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company's
segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes
segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises:
Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud
services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses
(CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services.
The More Personal Computing segment primarily comprises Windows, devices, gaming, and search and news advertising.
Page 1 of 12
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INDICATOR COMPONENTS
The AVERAGE SCORE combines the quantitative analysis of six widely-used investment decision making tools: Earnings,
Fundamental, Relative Valuation, Risk, Price Momentum and Insider Trading. A simple average of the underlying component ratings is
normally distributed to rank stocks on a 1-10 scale (10 being awarded to the most favorable). These factors may be evaluated differently
using alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment
styles. Additional criteria should always be used to evaluate a stock.
Earnings Fundamental Relative Valuation Risk Price Momentum Insider Trading
OPTIMIZED SCORE
As an alternative approach to equally weighting each of the six factors, independent
Historically, companies with an Optimized Score research firm, Verus Analytics, conducted a backtest to empirically determine an
of 8 have tended to moderately outperform the optimal factor blend. Results and weighting vary across four different market
market over the following 12-month period. capitalization categories. For large/mid cap stocks, Fundamental and Earnings
historically provided the most explanatory power among the factors and are weighted
heavily in the Optimized Score. Among the small/micro cap universe, Insider Trading
joined Fundamental and Earnings as the most significant factors to explain returns.
PEER ANALYSIS Currency in USD
PRICE MOMENTUM VALUATION FUNDAMENTAL ANALYSTS

Average Price 1-Mo 3-Mo 1-Yr Market Trailing Forward Dividend Net LTG I/B/E/S # of
Score Ticker (2024-03-07) Return Return Return Cap PE PE Yield Margin Forecast Mean Analysts
8 MSFT 409.14 -1.2% 10.3% 61.0% 3.1T 37.0 33.6 0.73% 36.3% 16.3% Buy 57
8 SNPS 583.35 5.2% 9.2% 61.5% 90.2B 64.3 42.8 -- 23.0% 18.8% Buy 14
6 CDNS 318.04 5.8% 22.6% 62.8% 85.8B 83.3 53.7 -- 25.5% 17.1% Buy 15
6 PLTR 26.46 12.1% 53.7% 220% 52.6B 294.0 79.2 -- 9.4% 85.2% Hold 17
6 TTD 81.83 17.6% 19.0% 42.0% 37.3B 227.3 56.1 -- 9.2% -- Buy 33
5 TEAM 202.96 -3.1% 8.0% 15.0% 32.9B -- 76.3 -- -9.9% -- Buy 29
8 SE 59.34 36.1% 52.0% -25.9% 28.9B 51.6 163.9 -- 5.4% -- Buy 29
6 SPLK 156.34 1.9% 3.5% 54.6% 26.3B 124.0 29.2 -- 6.3% -- Hold 32
4 TTWO 145.01 -14.5% -6.0% 24.1% 25.6B -- 45.1 -- -26.9% -- Buy 27
4 RBLX 40.12 -10.3% 0.65% -3.5% 24.0B -- -- -- -41.2% -- Buy 32
8 ZM 67.03 4.9% -6.8% -3.8% 21.6B 32.9 13.6 -- 14.1% 1.5% Hold 32
6.3 Average 189.97 5.0% 15.1% 46.1% 319.3B 114.3 59.3 0.73% 4.6% 27.8% Buy 28.8
PEER COMPANIES
CDNS Cadence Design Systems Inc SPLK Splunk Inc
PLTR Palantir Technologies Inc TEAM Atlassian Corp
RBLX Roblox Corp TTD Trade Desk Inc
SE Sea TTWO Take-Two Interactive Software
SNPS Synopsys Inc ZM Zoom Video Communications Inc
Page 2 of 12
EARNINGS Currency in USD
POSITIVE OUTLOOK: Strong earnings with Earnings Score Averages

recent analyst upgrades or a history of Software & IT Services Group: 6.5 Mega Market Cap: 7.1
surpassing consensus estimates. Software & IT Services Sector: 6.5 S&P 500 Index: 6.6
Earnings Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
PLTR 6 10 8 10 10
Neutral TTD 10 6 8 10 10
SNPS 9 9 8 9 9
Negative
CDNS 10 9 10 6 6
2021-03 2022-03 2023-03 2024-03
EARNINGS INDICATORS
Earnings Surprises Estimate Revisions Recommendation Changes
(33.3% weight) (33.3% weight) (33.3% weight)
CDNS PLTR
SNPS SNPS PLTR
MSFT TTD
PLTR MSFT
MSFT
TTD CDNS
CDNS SNPS
TTD
Last 4 Quarters Last 4 Weeks Last 120 Days

# Positive Surprises (>2%) 4 # Up Revisions 1 # Broker Upgrades 1
# Negative Surprises (<-2%) 0 # Down Revisions 1 # Broker Downgrades 0
# In-Line Surprises (within 2%) 0 Avg Up Revisions 1.8%
Avg Surprise 8.3% Avg Down Revisions -1.8%
HIGHLIGHTS PRICE TARGET

- Microsoft Corp currently has an Earnings Rating of 10, which is The chart indicates where analysts predict the stock price will be within
significantly more bullish than the Software industry average of 6.9. the next 12 months, as compared to the current price.
MSFT scores a bullish 7 or greater for two of three component ratings.
540 HIGH 12-Month Price Target
- Over the past 90 days, the consensus price target for MSFT has Mean (USD) 457.00
increased notably from 406.00 to 457.00, a gain of 12.6%. 480
MEAN
409.14 High 546.00
420
- Over the past 4 quarters, the company has reported 4 positive, 0 Low 298.00
negative, and 0 in-line surprises. The average surprise for this time 360 Target vs. Current 11.7%
period has been 8.3%. Most recently on 2024-01-30, the company
300 LOW # of Analysts 47
reported quarterly earnings of 2.93 per share, a positive surprise of
5.3% above the consensus of 2.78. 240
Current Price Price Target
(USD)
Page 3 of 12
EARNINGS PER SHARE

Actuals Estimates
3.400
Earnings per share (EPS) is calculated 3.200 Quarterly 24-03 24-06

by dividing a company's earnings by the 2.990
2.930
HIGH
Mean 2.826 2.881
number of shares outstanding. Analysts 3.000
tend to interpret a pattern of increasing MEAN High 3.060 3.080
2.800 2.690
earnings as a sign of strength and flat LOW Low 2.776 2.700
or falling earnings as a sign of 2.600 2.450 # of Analysts 32 33
weakness.
2.400
The charts provide a comparison 23-03 23-06 23-09 23-12 24-03 24-06
between a company's actual and
estimated EPS, including the high and Actuals Estimates
low forecasts. 18.00
16.00 Annual 2024 2025

HIGH Mean 11.660 13.360
14.00
MEAN High 12.120 14.360
LOW
12.00 Low 11.400 12.540
9.81
10.00 9.21 # of Analysts 41 42
8.00
2022 2023 2024 2025
MEAN ESTIMATE TREND ANALYST RECOMMENDATIONS

Q Q Y Y Price I/B/E/S Mean: Buy (57 Analysts)
24-03 24-06 2024 2025 Target
Strong Buy 23
Current 2.826 2.881 11.660 13.360 457.00
30 Days Ago 2.791 2.895 11.650 13.350 456.00 Buy 31
90 Days Ago 2.649 2.815 11.240 12.950 406.00 Hold 3
% Change (90 Days) 6.7% 2.3% 3.7% 3.2% 12.6%
Sell 0
Current Fiscal Year End: 24-06
Strong Sell 0
Next Expected Report Date: 2024-04-23
EARNINGS SURPRISES
Comparing a company's actual earnings to the mean expectation of Surprise Detail (Last 6 Periods)
analysts results in a difference referred to as a 'positive' or 'negative'
surprise. Research has shown that when a company reports a Surprise Announce Period End Actual Mean Surprise
surprise, it is often followed by more of the same surprise type. Type Date Date EPS EPS (%)
Surprise Summary (Last 12 Quarters) Positive 2024-01-30 2023-12-31 2.930 2.782 5.3%
Positive 2023-10-24 2023-09-30 2.990 2.653 12.7%
Surprise Type Amount Percent
Positive 2023-07-25 2023-06-30 2.690 2.550 5.5%
Positive Quarters (> 2%) 9 75.0%
Positive 2023-04-25 2023-03-31 2.450 2.231 9.8%
Negative Quarters (< -2%) 1 8.3%
In-Line 2023-01-24 2022-12-31 2.320 2.295 1.1%
In-Line Quarters (within 2%) 2 16.7%
Positive 2022-10-25 2022-09-30 2.350 2.303 2.0%
ANNUAL REVENUE
A pattern of increasing sales in Actuals Estimates
conjunction with a rising EPS may
influence a buy recommendation, while 330B
2024 2025
flat or falling sales and faltering 300B
earnings may explain a sell HIGH Mean 244.3B 279.3B
MEAN
recommendation. A rising EPS with flat 270B LOW High 248.5B 291.8B
or falling sales may result from
increased cost efficiency and margins, 240B
Low 241.4B 273.3B
rather than market expansion. This 211.9B Forecasted Growth 15.3% 31.8%
198.3B
chart shows the sales forecast trend of 210B
# of Analysts 44 45
all analysts and the highest and lowest
projections for the current and next 180B
2022 2023 2024 2025
fiscal year.
Page 4 of 12
FUNDAMENTAL
NEUTRAL OUTLOOK: Fundamentals relatively Fundamental Score Averages
in-line with the market. Software & IT Services Group: 5.6 Mega Market Cap: 6.1
Software & IT Services Sector: 5.6 S&P 500 Index: 6.0
Q1 Q2 Q3 Q4
Fundamental Score Trend Peers 2023 2023 2023 2023 Current 3Y Trend
PLTR 10 10 10 10 10
Positive
TTD 10 10 10 10 10
Neutral SNPS 10 10 10 10 9
Negative CDNS 7 7 7 1 8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 MSFT 9 8 8 10 7
2021 2022 2023
FUNDAMENTAL INDICATORS
Profitability Debt Earnings Quality Dividend
(25% weight) (25% weight) (25% weight) (25% weight)
CDNS
MSFT
PLTR PLTR
PLTR
SNPS TTD
SNPS
TTD
CDNS
MSFT MSFT MSFT
TTD
CDNS
SNPS
CDNS
PLTR
SNPS
TTD
Revenue Growth 11.5% Current Ratio 1.2 Oper. Cash Yield 24.4% Dividend Growth 10.0%
For year over year For interim period For latest 12 months For year over year
ending 2023-12 ending 2023-12 ending -- ending 2023-12
Gross Margin 69.7% Debt-to-Capital 21.9% Accruals 5.2% Dividend Payout 25.9%
For latest 12 months For annual period For latest 12 months For latest 12 months
ending 2023-12 ending 2023-06 ending 2023-06 ending 2023-12
Return On Equity 39.2% Interest Funding 3.1% Days Sales In Inv. 21.9 Dividend Coverage 4.5
For interim period For interim period For annual period For annual period
Net Margin 36.3% Interest Coverage 30.2 Days Sales In Rec. 80.0 Current Div. Yield 0.7%
For latest 12 months For interim period For annual period For latest 12 months
HIGHLIGHTS
- Microsoft Corp currently has a Fundamental Rating of 7. The average - The company's days sales in receivables has been higher than its
Fundamental Rating for its Software industry is 5.8 and the S&P 500 industry average for each of the past five years.
index average is 6.0. - Of the 288 firms within the Software industry, Microsoft Corp is among
- The company's gross margin has been higher than its industry average 23 companies that pay a dividend. The stock's dividend yield is
for each of the past five years. currently 0.75%.
- The company's debt-to-capital has been higher than its industry
average for each of the past five years.
Page 5 of 12
RELATIVE VALUATION
NEGATIVE OUTLOOK: Multiples significantly Relative Valuation Score Averages
above the market or the stock's historic norms. Software & IT Services Group: 5.1 Mega Market Cap: 3.9
Relative Valuation Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
CDNS 1 1 1 1 1
Neutral PLTR 2 1 1 1 1
SNPS 2 1 1 2 1
Negative
TTD 1 1 2 1 1
2021-03 2022-03 2023-03 2024-03
RELATIVE VALUATION INDICATORS

Price to Sales Trailing PE Forward PE
(33.3% weight) (33.3% weight) (33.3% weight)
CDNS MSFT MSFT

MSFT CDNS TTD
PLTR SNPS CDNS
SNPS PLTR PLTR
TTD TTD SNPS
Price to Sales 13.4 Trailing PE 37.0 Forward PE 33.6

5-Yr Average 10.8 5-Yr Average 32.1 5-Yr Average 29.8
Rel. to 5-Yr Avg. 24% Premium Rel. to 5-Yr Avg. 15% Premium Rel. to 5-Yr Avg. 13% Premium
S&P 500 Index 2.7 S&P 500 Index 27.1 S&P 500 Index 21.6
Rel. to S&P 500 >100% Premium Rel. to S&P 500 36% Premium Rel. to S&P 500 55% Premium
HIGHLIGHTS
- Microsoft Corp currently has a Relative Valuation Rating of 2 which is - MSFT's Trailing P/E of 37.0 represents a 15% Premium to its 5-year
significantly below the S&P 500 index average rating of 4.6. average of 32.1.
- MSFT's Forward PEG of 2.1 represents a 3% Premium to its 5-year - MSFT's Forward P/E of 33.6 represents a 13% Premium to its 5-year
average of 2.0. average of 29.8.
Page 6 of 12
PRICE TO SALES TRAILING PE

The most recent week's close price divided by the revenue per share. The most recent week's close price divided by the sum of the four most
recently reported quarterly earnings.
Price to Sales: 13.4 Trailing PE: 37.0
5-Year Average: 10.8 5-Year Average: 32.1
S&P 500 Index Average: 2.7 S&P 500 Index Average: 27.1
Software Industry Average: 9.5 Software Industry Average: 61.5
17.0 42
16.0 40
15.0 38
14.0 36
13.0 34
12.0 32 5-Yr Average
11.0 5-Yr Average 30
10.0 28
9.0 26
8.0 24
7.0 22
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
FORWARD PE FORWARD PEG

The most recent week's close price divided by the sum of the four The Forward P/E divided by the five-year forecasted growth rate.
upcoming quarterly consensus estimates.
Forward PE: 33.6 Forward PEG: 2.1
5-Year Average: 29.8 5-Year Average: 2.0
S&P 500 Index Average: 21.6 S&P 500 Index Average: 2.0
Software Industry Average: 35.3 Software Industry Average: 1.5
42 3.4
40 3.2
38 3.0
36 2.8
34 2.6
32 2.4
30 5-Yr Average 2.2
28 2.0 5-Yr Average
26 1.8
24 1.6
22 1.4
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Page 7 of 12
RISK
POSITIVE OUTLOOK: Consistent return Risk Score Averages
patterns (low volatility). Software & IT Services Group: 4.7 Mega Market Cap: 9.0
Risk Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
CDNS 10 10 10 9 9
Neutral SNPS 9 10 9 8 8
TTD 6 6 5 4 4
Negative
PLTR 4 4 5 3 3
2021-03 2022-03 2023-03 2024-03
RISK INDICATORS
Magnitude of Returns Volatility Beta (1-year) Correlation
(25% weight) (25% weight) (25% weight) (25% weight)
MSFT MSFT CDNS

CDNS CDNS MSFT
SNPS SNPS SNPS
TTD PLTR
TTD
PLTR TTD
PLTR
SNPS
PLTR CDNS
MSFT
TTD
Daily Returns (Last 90 Days) Standard Deviation Beta vs. S&P 500 1.11 Correlation vs. S&P 500
Best 2.4% Last 90 Days 1.12 Positive Days Only 1.26 Last 90 Days 74%
Worst -3.0% Last 60 Months 6.35 Negative Days Only 0.83 Last 60 Months 73%
Monthly Returns (Last 60 Months) Intra-Day Swing (Last 90 Days) Beta vs. Group 0.39 Correlation vs. Group
Best 15.6% Average 1.5% Positive Days Only 0.18 Last 90 Days 35%
Worst -12.0% Largest 4.6% Negative Days Only 0.57 Last 60 Months 56%
HIGHLIGHTS RISK ANALYSIS

- Microsoft Corp currently has a Risk Rating of 10 while the S&P Last 90 Days Last 60 Months
500 index has an average rating of 8.9. Best Worst # # Largest Best Worst
- On days when the market is up, MSFT tends to outperform the Daily Daily Days Days Intra-Day Monthly Monthly
S&P 500 index. However, on days when the market is down, Peers Return Return Up Down Swing Return Return
the shares generally decrease by less than the index. MSFT 2.4% -3.0% 34 28 4.6% 15.6% -12.0%
- In both short-term and long-term periods, MSFT has shown
high correlation (>= 0.4) with the S&P 500 index. Thus, this CDNS 5.1% -4.0% 36 26 4.9% 23.3% -18.4%
stock would provide only low levels of diversification to a PLTR 30.8% -4.3% 30 31 11.1% 167.6% -32.4%
portfolio similar to the broader market.
- Over the last 90 days, MSFT shares have been less volatile SNPS 6.9% -6.3% 31 31 8.7% 22.5% -15.9%
than the overall market, as the stock's daily price has fluctuated TTD 17.5% -7.2% 32 30 9.4% 59.1% -32.8%
less than 93% of S&P 500 index firms.
S&P 500 2.1% -1.6% 38 23 1.7% 12.7% -12.5%
Page 8 of 12
PRICE MOMENTUM Currency in USD
POSITIVE OUTLOOK: Strong recent price Price Momentum Score Averages

performance or entering historically favorable Software & IT Services Group: 5.8 Mega Market Cap: 8.0
seasonal period. Software & IT Services Sector: 5.8 S&P 500 Index: 7.3
Price Momentum Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive CDNS 8 10 10 10 10
MSFT 8 9 10 10 10
Neutral PLTR 8 7 6 7 10
SNPS 7 10 10 10 10
Negative
TTD 8 8 8 9 9
2021-03 2022-03 2023-03 2024-03
PRICE MOMENTUM INDICATORS

Relative Strength Seasonality
(50% weight) (50% weight)
CDNS CDNS
PLTR MSFT
MSFT SNPS
SNPS PLTR
TTD TTD
Relative Strength Indicator (Scale from 1 to 100) Average Monthly Return (Last 10 Years)
MSFT Industry Avg Mar Apr May
Last 10 Days 52 53 Company Avg 3.1% 4.8% 1.2%
Last 50 Days 58 51 Industry Avg -2.6% 1.5% 2.0%
Last 200 Days 55 50 Industry Rank 84 of 128 64 of 128 14 of 128
PRICE PERFORMANCE
Daily close prices are used to calculate the MSFT MSFT DJIA
performance of the stock as compared to a
DJIA Close Price (2024-03-07) 409.14 38,790
relevant index over five time periods.
52-Week High 420.82 39,132
-1.1%
1-Week 52-Week Low 245.73 31,819
-0.5%
1-Month
-1.2% - The Price Momentum Rating for Microsoft Corp is at its 3-year
0.3% high of 10.
- On 2024-03-07, MSFT closed at 409.14, 2.8% below its 52-
10.3% week high and 66.5% above its 52-week low.
3-Month
7.4%
- MSFT shares are currently trading 2.6% above their 50-day
8.8% moving average of 398.94, and 14.8% above their 200-day
YTD moving average of 356.35.
2.9%
61%
1-Year
18.1%
Page 9 of 12
INSIDER TRADING Currency in USD
NEGATIVE OUTLOOK: Recent or longer-term Insider Trading Score Averages

trend of selling by company insiders. Software & IT Services Group: 3.6 Mega Market Cap: 3.1
Insider Trading Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend
Positive SNPS 2 6 4 4 4
CDNS 1 1 1 1 1
Neutral MSFT 2 3 3 1 1
PLTR 1 1 2 1 1
Negative
TTD 1 1 1 1 1
2021-03 2022-03 2023-03 2024-03
INSIDER TRADING INDICATORS

Short-Term Insider Long-Term Insider
(70% weight) (30% weight)
PLTR
SNPS SNPS
MSFT
CDNS
CDNS
MSFT
PLTR
TTD
TTD
Most Recent Buys and Sells (Last 90 Days) Insider Summary (Last 6 Months)
Insider Name Role Tran Date Tran Type Shares Total Shares Acquired --
Nadella, Satya CEO 2024-03-01 S 1,276 Total Shares Disposed 96,246
Smith, Bradford L. P 2024-02-02 - 2024-02-05 S 48,303 Net Shares -96,246
Sector Average -1,081,384
HIGHLIGHTS MONTHLY BUYS AND SELLS

- Microsoft Corp currently has an Insider Trading Rating of 1, which is BUYS $ Market Value (Millions)
40
significantly more bearish than both the Software industry average of
3.37 and the Software & IT Services industry group average of 3.58. 20
Excludes
- Since the beginning of the current quarter, sales by Microsoft Corp 0 derivative
executives have totaled $20,395,789. Over the past five years, the and option
average sell total for Q1 has been $26,704,256. 20 exercises
40
SELLS
A M J J A S O N D J F M
TOP INSTITUTIONAL HOLDERS TOP EXECUTIVE HOLDERS

Inst. % Shares Reported Direct Reported
Institution Name Type O/S Held Date Insider Name Role Shares Value Date
The Vanguard Group Inc Inv Mgmt 8.9% 662M 2023-12-31 Nadella, Satya CEO 0.80M 321M 2023-11-01
BlackRock Institutional Inv Mgmt 4.7% 349M 2023-12-31 Smith, Bradford L. P 0.62M 247M 2023-12-01
State Street Global Inv Mgmt 4.0% 298M 2023-12-31 Hood, Amy E CFO 0.52M 208M 2023-09-18
Fidelity Management Inv Mgmt 2.8% 208M 2023-12-31 Hogan, Kathleen T. O 0.18M 73.2M 2023-12-26
Geode Capital Management Inv Mgmt 2.1% 154M 2023-12-31 Althoff, Judson O 0.14M 57.0M 2023-11-13
Updated daily as of 2024-03-07 Updated monthly as of 2024-01-21
Page 10 of 12
● Earnings Surprises - The number of positive and negative surprises within the last
DETAILED STOCK REPORT TIPS 4 quarters.
● Estimate Revisions - The number of up and down revisions and the average
The Stock Report from LSEG is a comprehensive, company-specific analysis that percentage change of those revisions within a 4 week period.
includes a proprietary Stock Rating along with underlying component indicators and ● Recommendation Changes - The number of broker upgrades and downgrades in
supportive data elements. The report is updated daily, although some of the data the last 120 days.
elements and the ratings are updated weekly. Price Target
Average Score The price target is based on the predictions of analysts covering the stock and
The Stock Reports Plus Average Score combines a quantitative analysis of six shows the high, low and mean price expected within the next 12 months.
widely-used investment decision making tools - Earnings, Fundamental, Relative Earnings Per Share
Valuation, Risk, Price Momentum, and Insider Trading. First, a simple average of
the six underlying component ratings is calculated. Then, a normal distribution is The quarterly and annual earnings per share are presented when available, along
used to rank each stock across the market on a scale of 1 to 10, with 10 being most with the mean, high and low. Quarterly data is displayed for the past 4 quarters
favorable. A score of 8 to 10 is considered positive, 4 to 7 is neutral, and 1 to 3 is (actual) and the next 2 quarters (estimated). Annual data is displayed for the past 2
negative. These six factors may be evaluated differently using alternative years (actual) and the next 2 years (estimated).
methodologies, and the importance of individual factors varies across groups, Mean Estimate Trend
market capitalization and investment styles. Additional criteria should always be The mean estimates show how the consensus has changed over the past 30 days
used to evaluate a stock. and 90 days for the upcoming two quarters and two years. The percentage change
A company must have sufficient data available for at least four of the six component is calculated for the company as a means for comparison by measuring the
indicators in order to receive an overall Average Score. Approximately 85% of the difference between the current consensus estimate and that of 90 days ago.
stocks within the coverage universe meet the criteria to generate a score. Analyst Recommendations
Optimized Score The I/B/E/S Mean is the average recommendation of all analysts covering the stock,
As an alternative to the Average Score, the Stock Report includes an Optimized as provided by I/B/E/S, the Institutional Brokers Estimate System, from LSEG. The
Score generated by independent research firm Verus Analytics. It uses the same six recommendations are presented on a five-point standardized scale: strong buy, buy,
component ratings, but rather than equally weighting each of the factors, the hold, sell, and strong sell.
weighting varies by market capitalization of the underlying security based on Earnings Surprises
backtesting research. These scores are also updated weekly and distributed ● The surprise summary includes the total number of quarters (and percentage) in
normally on a 1 to 10 scale, with 10 being best. The variable size is assigned the past 12 quarters in which earnings surprises were positive, negative, or in-
monthly by ranking the market capitalization and assigning the appropriate category line. In order to be recognized as a positive or negative surprise, the percent must
as follows: be greater than 2% above or 2% below the consensus, respectively.
● The surprise detail section includes a listing of the company's quarterly earnings
Large - Top 5.55% reported for the most recent 6 quarters. The consensus analyst estimate is
Mid - Next 13.87% provided to determine if the actual earnings report represented a positive surprise,
Small - Next 34.68% negative surprise, or in-line result.
Micro - Remaining 45.9% Fundamental
Indicator Components The Fundamental Rating is based on a combination of four factors: profitability,
debt, earnings quality, and dividend. Companies that do not pay a dividend are not
The six indicators that comprise the stock rating are displayed. Like the stock rating,
penalized. Each factor is equally weighted. Then, equal deciles are used to rank
the component rating scale is 1 to 10, with 10 being best. A company will receive an
each stock across the market on a scale of 1 to 10, with 10 being most favorable. A
'NR' for No Rating if the required data elements or criteria are not met. A detailed
stock needs to have at least two of the four fundamental factors present for a given
section for each component is included in the report.
fiscal quarter in order to receive a score.
Indicator Trends
Profitability
Within each component section, historical score trends are displayed, typically using
● Revenue Growth: (Net Sales - Previous Net Sales) / Previous Net Sales
a 4-week moving average over a timeframe of the past three years. The dotted
● Gross Margin: Gross Profit / Net Sales
orange line indicates the average of the scores over those three years. The most
● Return on Equity: Net Income / Total Equity
recent occurrences of the best and worst scores are also displayed on the chart in
● Net Margin: Net Profit / Net Sales
grey boxes to put the current score into historical context.
Debt
Next to the trend chart for the company, current score averages are included, along
● Current Ratio: Current Assets / Current Liabilities
with peer company comparisons of values from 6 months ago, 3 months ago, 1
● Debt-to-Capital: Total Debt / Total Capital
month ago, the most recent value from 1 week ago, and the current score. The four
● Interest Funding: (Interest Expense on Debt + Preferred Cash Dividends) / Funds
closest industry peers are presented based on similar market capitalization.
from Operations
Peer Analysis ● Interest Coverage: Earnings before Interest and Taxes / (Interest Expense on
● The Refinitiv Business Classification (TRBC) schema is used for industry Debt + Preferred Cash Dividends)
comparisons. It is designed to track and display the primary business of a Earnings Quality
corporation by grouping together correlated companies that offer products and
services into similar end markets. The system includes 10 Economic Sectors, 28 ● Operating Cash Yield: (Operating Cash Flow - Net Income) / Net Income
Business Sectors, 54 Industry Groups, and 136 Industries. ● Accruals: (Net Income - Operating Cash Flow - Investing Cash Flow) / Average
● The Peer Analysis section of the report compares the company to its ten closest Net Operating Assets
peers. The peers are selected from the industry based on similar market ● Days Sales in Inventory: 365 / (Cost of Goods Sold / Inventory)
capitalization. The peer listing may have fewer than ten companies if there are ● Days Sales in Receivables: 365 / (Net Sales / Receivables)
fewer than ten companies classified within that industry.
Dividend
Highlights
The company must have a current dividend yield.
The automated text-generation system from LSEG creates highlights summarizing
● Dividend Growth Rate: (Dividends per Share - Previous Dividends per Share) /
the most noteworthy data. The bullets will vary by company and will change from
Previous Dividends per Share
week to week as different criteria are met. ● Dividend Funding: Dividends / Operating Cash Flow
Earnings ● Dividend Coverage: (Pre-Tax Income + Interest Expense) / (Interest Expense +
The Earnings Rating is based on a combination of three factors: earnings surprises, Dividends)
● Dividend Yield: Annual Dividends per Share / Current Market Price per Share
estimate revisions, and recommendation changes. Each factor is equally weighted.
Then, equal deciles are used to rank each stock across the market on a scale of 1 to Indicator Trend
10, with 10 being most favorable. A stock needs to have at least two of the three The fundamental indicator trend displays quarterly scores over the past three years.
earnings factors in order to receive a score. The best and worst scores over that timeframe can be easily determined from the
values shown on the chart for each quarter.
Page 11 of 12
Relative Valuation Monthly Buys and Sells

The Relative Valuation Rating is based on a combination of three factors: Price to The total market value of open-market buying and selling is displayed by month in
Sales, Trailing P/E, and Forward P/E. Each factor is equally weighted. After the the chart for easy comparison. Transactions by trusts and corporations are
individual factors are combined, equal deciles are used to rank each stock across excluded, along with buys greater than $10 million and sales greater than $50
the market on a scale of 1 to 10, with 10 being most favorable. These common million. Transactions for the exercise of derivatives and option exercises are
valuation metrics are evaluated against the overall market, the index, and the excluded from the totals.
company's own historic 5-year averages. A stock needs to have at least one of the
Institutional Holders
three relative valuation factors in order to receive a score.
The top five institutional holders of the company are listed in descending order,
● Price to Sales: Close Price / (Sales for 4 Quarters / Shares Outstanding) based on their total share holdings. Possible values for the institution type include
● Trailing P/E: Close Price / Most Recent 4 Quarters of Earnings Brokerage, Funds, Inv Mgmt, or Strategic.
● Forward P/E: Close Price/ Upcoming 4 Quarters of Earnings
Executive Holders
Valuation Averages
The top five executive insiders of the company are listed in descending order, based
Negative values are excluded when calculating the averages. A maximum value of on their total direct common share holdings (options are not considered). Indirect
100 is placed on Trailing P/E and Forward P/E, a maximum value of 5 is placed on holdings are excluded, as the owner may not actually have investment discretion
Forward PEG, and a maximum value of 20 is placed on Price to Sales when over these shares. This table is updated monthly. Insiders who have not filed any
calculating the averages. Higher values are rounded down to the maximum for the transactions or holdings over the past two years are excluded as this may indicate
averages. that the individual is no longer associated with the company. Additionally, direct
Valuation Multiples shares held must be greater than 1,000 to be considered.
The valuation multiples provide the Trailing P/E, Forward P/E, Forward PEG, and Insider Roles
Price to Sales for the company and the S&P 500 index average. In addition, a These role codes may appear in the data for recent insider buys and sells or top
comparison of the current company's values to its 5-year average and an industry executive holders:
average are presented. A discount occurs when the company's ratio is valued more
favorably (lower) than that to which it is compared. AF - Affiliate IA - Investment Advisor
AI - Affiliate of Advisor MC - Member of Committee
Risk
B - Beneficial Owner MD - Managing Director
The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the
C - Controller O - Officer
least risky stocks. It is derived by looking at a series of long-term (5-year) and short-
CB - Chairman OB - Officer / Beneficial Owner
term (90-day) stock performance measures including volatility, magnitude of returns,
beta, and correlation. Each factor is equally weighted. Then, equal deciles are used CEO - Chief Executive Officer OD - Officer / Director
to rank each stock across the market. A stock needs to have at least two of the four CFO - Chief Financial Officer OE - Other Executive
risk factors in order to receive a score. CI - Chief Investment Officer OS - Officer of Subsidiary
● Magnitude of Returns - The best / worst daily returns in the past 90 days and the CO - Chief Operating Officer OT - Officer / Treasurer
best / worst monthly returns in the past 60 months. CT - Chief Technology Officer OX - Divisional Officer
● Volatility - The standard deviation of the stock price over the last 90 days and last D - Director P - President
60 months, along with the average and largest intra-day stock swing.
●
DO - Director / Beneficial Owner R - Retired
Beta - Measures the tendency of a security's returns to respond to swings in the
market, based on the beta of the company versus the relevant index. DS - Indirect Shareholder S - Secretary
● Correlation - Determines how closely the returns of the stock and the relevant EC - Member of Exec Committee SH - Shareholder
index move together, measured over the last 90 days and last 60 months. EVP - Exec Vice President SVP - Senior Vice President
Risk Analysis FO - Former T - Trustee
Price analysis for the company and the S&P 500 is provided over two time periods. GC - General Counsel UT - Unknown
Daily analysis is provided for the last 90 days, whereas monthly statistics are used GP - General Partner VC - Vice Chairman
for the last 60 months. H - Officer / Director / Owner VP - Vice President
Price Momentum
The Price Momentum Rating is based on a combination of two technical
DISCLAIMER
performance factors: relative strength and seasonality. The factors are equally
weighted. Equal deciles are then used to rank each stock across the market on a © 2024 Refinitiv, an LSEG business. All rights reserved. Republication or
scale of 1 to 10, with 10 being most favorable. A stock needs to have data for the redistribution of Refinitiv content, including by framing or similar means, is prohibited
relative strength factor in order to receive a score. without the prior written consent of Refinitiv. All information in this report is assumed
● Relative Strength - The relative strength of the company for the last 10 days, 50 to be accurate to the best of our ability. Refinitiv is not liable for any errors or delays
days, and 200 days on a scale of 1 to 100. in Refinitiv content, or for any actions taken in reliance on such content.
● Seasonality - The average monthly return (price performance) for the current
month and next 2 months for the company and industry, over the past 10 years. A Any forward-looking statements included in the Refinitiv content are based on
lower industry rank indicates a higher return. certain assumptions and are subject to a number of risks and uncertainties that
Price Performance could cause actual results to differ materially from current expectations. There is no
assurance that any forward-looking statements will materialize.
Daily close prices are used to calculate the price performance of the stock. The
performance of the S&P 500 is also displayed as a means of comparison. The content in this Refinitiv report does not constitute investment advice or a
recommendation to buy or sell securities of any kind. Past performance is not a
Insider Trading
guarantee of future results. Investors should consider this report as only a single
The Insider Trading Rating is based on short-term (70% weight) and long-term (30% factor when making an investment decision.
weight) legal insider trading behavior. After the weightings are considered to
combine individual factors, a function similar to a normal distribution is used to rank
each stock across the market on a scale of 1 to 10, with 10 being most favorable. A
stock needs to have at least one of the two insider trading factors in order to receive
a score.
● Short-Term Insider - Uses insider buy and sell transactions within the past 90
days. This factor is based on the quantitative insider trading model from LSEG
that considers the insider's role, consensus, number of shares, market
capitalization of the company, and the historic stock performance following trades
by the given insider.
● Long-Term Insider - Looks at buying, selling and option exercise decisions over
the past six months relative to other stocks within the same business sector. The
net shares are presented alongside the business sector average as a means of
comparison.
Page 12 of 12

LSEG Stock Report On MSFT

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LSEG Stock Report On MSFT

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MICROSOFT CORP (MSFT-O)

HIGHLIGHTS I/B/E/S MEAN

PRICE AND VOLUME CHARTS

Earnings Fundamental Relative Valuation Risk Price Momentum Insider Trading

PRICE MOMENTUM VALUATION FUNDAMENTAL ANALYSTS

5 TEAM 202.96 -3.1% 8.0% 15.0% 32.9B -- 76.3 -- -9.9% -- Buy 29

8 SE 59.34 36.1% 52.0% -25.9% 28.9B 51.6 163.9 -- 5.4% -- Buy 29

4 TTWO 145.01 -14.5% -6.0% 24.1% 25.6B -- 45.1 -- -26.9% -- Buy 27

4 RBLX 40.12 -10.3% 0.65% -3.5% 24.0B -- -- -- -41.2% -- Buy 32

EARNINGS Currency in USD

POSITIVE OUTLOOK: Strong earnings with Earnings Score Averages

Last 4 Quarters Last 4 Weeks Last 120 Days

HIGHLIGHTS PRICE TARGET

EARNINGS PER SHARE

Earnings per share (EPS) is calculated 3.200 Quarterly 24-03 24-06

16.00 Annual 2024 2025

MEAN ESTIMATE TREND ANALYST RECOMMENDATIONS

RELATIVE VALUATION INDICATORS

CDNS MSFT MSFT

Price to Sales 13.4 Trailing PE 37.0 Forward PE 33.6

PRICE TO SALES TRAILING PE

FORWARD PE FORWARD PEG

MSFT MSFT CDNS

HIGHLIGHTS RISK ANALYSIS

PRICE MOMENTUM Currency in USD

POSITIVE OUTLOOK: Strong recent price Price Momentum Score Averages

PRICE MOMENTUM INDICATORS

INSIDER TRADING Currency in USD

NEGATIVE OUTLOOK: Recent or longer-term Insider Trading Score Averages

INSIDER TRADING INDICATORS

HIGHLIGHTS MONTHLY BUYS AND SELLS

TOP INSTITUTIONAL HOLDERS TOP EXECUTIVE HOLDERS

Relative Valuation Monthly Buys and Sells

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