Microsoft (NASDAQ:MSFT) Stock Price Up 0.9% – Here’s Why

Microsoft Co. (NASDAQ:MSFT) shares were up 0.9% on Wednesday . The company traded as high as $439.60 and last traded at $439.33. Approximately 7,164,542 shares traded hands during mid-day trading, a decline of 65% from the average daily volume of 20,709,721 shares. The stock had previously closed at $435.25.

Analysts Set New Price Targets

A number of research analysts have weighed in on MSFT shares. Citigroup decreased their price objective on shares of Microsoft from $500.00 to $497.00 and set a “buy” rating for the company in a research report on Wednesday, October 23rd. Loop Capital increased their price target on Microsoft from $500.00 to $550.00 and gave the stock a “buy” rating in a research report on Monday. Piper Sandler restated an “overweight” rating and issued a $470.00 price objective on shares of Microsoft in a research report on Thursday, October 31st. Royal Bank of Canada reiterated an “outperform” rating and set a $500.00 target price on shares of Microsoft in a research report on Tuesday, November 5th. Finally, Wedbush reissued an “outperform” rating and issued a $550.00 price target on shares of Microsoft in a report on Tuesday, November 19th. Three investment analysts have rated the stock with a hold rating and twenty-seven have issued a buy rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $509.90.

Microsoft Stock Up 0.9 %

The company has a quick ratio of 1.29, a current ratio of 1.30 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $3.27 trillion, a PE ratio of 36.25, a price-to-earnings-growth ratio of 2.37 and a beta of 0.90. The firm has a 50-day moving average of $427.76 and a two-hundred day moving average of $428.69.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, October 30th. The software giant reported $3.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.10 by $0.20. The firm had revenue of $65.59 billion during the quarter, compared to the consensus estimate of $64.57 billion. Microsoft had a return on equity of 34.56% and a net margin of 35.61%. The company’s quarterly revenue was up 16.0% on a year-over-year basis. During the same period last year, the company earned $2.99 EPS. Equities research analysts predict that Microsoft Co. will post 12.93 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Investors of record on Thursday, February 20th will be given a dividend of $0.83 per share. The ex-dividend date of this dividend is Thursday, February 20th. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.76%. Microsoft’s payout ratio is currently 27.39%.

Microsoft declared that its board has approved a share repurchase program on Monday, September 16th that permits the company to buyback $60.00 billion in outstanding shares. This buyback authorization permits the software giant to purchase up to 1.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at Microsoft

In related news, CMO Takeshi Numoto sold 2,500 shares of the firm’s stock in a transaction dated Monday, December 9th. The stock was sold at an average price of $447.41, for a total transaction of $1,118,525.00. Following the completion of the transaction, the chief marketing officer now directly owns 49,352 shares in the company, valued at $22,080,578.32. This trade represents a 4.82 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Christopher David Young sold 7,200 shares of the business’s stock in a transaction dated Tuesday, November 12th. The stock was sold at an average price of $423.66, for a total transaction of $3,050,352.00. Following the sale, the executive vice president now owns 103,366 shares in the company, valued at $43,792,039.56. This trade represents a 6.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 41,200 shares of company stock worth $17,383,892 over the last ninety days. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

Large investors have recently modified their holdings of the stock. Christopher J. Hasenberg Inc raised its position in Microsoft by 169.2% in the 2nd quarter. Christopher J. Hasenberg Inc now owns 70 shares of the software giant’s stock valued at $31,000 after purchasing an additional 44 shares in the last quarter. Quarry LP acquired a new stake in Microsoft in the second quarter valued at approximately $45,000. MidAtlantic Capital Management Inc. purchased a new position in Microsoft in the third quarter worth approximately $62,000. Innealta Capital LLC acquired a new position in Microsoft during the 2nd quarter worth approximately $75,000. Finally, Carolina Wealth Advisors LLC increased its position in shares of Microsoft by 10.1% in the 3rd quarter. Carolina Wealth Advisors LLC now owns 338 shares of the software giant’s stock valued at $145,000 after purchasing an additional 31 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft Company Profile

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.