Microsoft (NASDAQ:MSFT) Shares Up 1.5% – What’s Next?

Shares of Microsoft Co. (NASDAQ:MSFT) traded up 1.5% on Friday . The stock traded as high as $432.52 and last traded at $431.15. 4,298,719 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 20,181,922 shares. The stock had previously closed at $424.73.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on MSFT shares. DA Davidson downgraded shares of Microsoft from a “buy” rating to a “neutral” rating and set a $475.00 target price on the stock. in a research report on Monday, September 23rd. Bank of America boosted their price target on shares of Microsoft from $480.00 to $510.00 and gave the stock a “buy” rating in a report on Wednesday, July 17th. Wells Fargo & Company reaffirmed a “buy” rating on shares of Microsoft in a research report on Friday, October 18th. UBS Group reduced their price objective on Microsoft from $520.00 to $510.00 and set a “buy” rating for the company in a report on Wednesday, July 31st. Finally, Citigroup lowered their price objective on Microsoft from $500.00 to $497.00 and set a “buy” rating on the stock in a research note on Wednesday. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and twenty-eight have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $495.94.

Microsoft Trading Up 1.4 %

The business’s 50-day simple moving average is $420.40 and its two-hundred day simple moving average is $424.56. The company has a market capitalization of $3.20 trillion, a PE ratio of 36.51, a PEG ratio of 2.24 and a beta of 0.90. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.16.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Tuesday, July 30th. The software giant reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.90 by $0.05. The firm had revenue of $64.73 billion during the quarter, compared to the consensus estimate of $64.38 billion. Microsoft had a net margin of 35.96% and a return on equity of 35.95%. The firm’s revenue was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.69 earnings per share. On average, analysts predict that Microsoft Co. will post 13.02 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st will be paid a dividend of $0.83 per share. This is a positive change from Microsoft’s previous quarterly dividend of $0.75. This represents a $3.32 dividend on an annualized basis and a yield of 0.77%. The ex-dividend date is Thursday, November 21st. Microsoft’s dividend payout ratio (DPR) is presently 25.40%.

Microsoft declared that its board has authorized a stock repurchase program on Monday, September 16th that permits the company to repurchase $60.00 billion in outstanding shares. This repurchase authorization permits the software giant to purchase up to 1.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Microsoft news, insider Bradford L. Smith sold 40,000 shares of the business’s stock in a transaction dated Monday, September 9th. The stock was sold at an average price of $402.59, for a total value of $16,103,600.00. Following the transaction, the insider now owns 544,847 shares in the company, valued at $219,349,953.73. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, CMO Takeshi Numoto sold 2,500 shares of Microsoft stock in a transaction dated Tuesday, September 10th. The stock was sold at an average price of $411.04, for a total value of $1,027,600.00. Following the completion of the transaction, the chief marketing officer now directly owns 50,000 shares of the company’s stock, valued at $20,552,000. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Bradford L. Smith sold 40,000 shares of the firm’s stock in a transaction dated Monday, September 9th. The shares were sold at an average price of $402.59, for a total value of $16,103,600.00. Following the completion of the transaction, the insider now owns 544,847 shares in the company, valued at approximately $219,349,953.73. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 190,629 shares of company stock worth $77,916,485 over the last quarter. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

Several hedge funds have recently bought and sold shares of the company. Rebalance LLC lifted its position in Microsoft by 0.7% during the second quarter. Rebalance LLC now owns 3,451 shares of the software giant’s stock worth $1,542,000 after buying an additional 24 shares in the last quarter. First National Bank Sioux Falls boosted its position in shares of Microsoft by 0.4% during the 2nd quarter. First National Bank Sioux Falls now owns 6,340 shares of the software giant’s stock valued at $2,834,000 after acquiring an additional 24 shares during the last quarter. Doheny Asset Management CA grew its holdings in shares of Microsoft by 0.4% in the first quarter. Doheny Asset Management CA now owns 6,397 shares of the software giant’s stock valued at $2,691,000 after purchasing an additional 25 shares during the period. Flagship Private Wealth LLC increased its position in Microsoft by 2.8% during the second quarter. Flagship Private Wealth LLC now owns 913 shares of the software giant’s stock worth $408,000 after purchasing an additional 25 shares during the last quarter. Finally, Massachusetts Wealth Management raised its stake in Microsoft by 0.3% during the second quarter. Massachusetts Wealth Management now owns 9,640 shares of the software giant’s stock worth $4,309,000 after purchasing an additional 25 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.

About Microsoft

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.