Microsoft (NASDAQ:MSFT) Trading Down 0.6%

Microsoft Co. (NASDAQ:MSFT) shares traded down 0.6% during trading on Friday . The stock traded as low as $435.97 and last traded at $436.01. 7,983,615 shares changed hands during trading, a decline of 61% from the average session volume of 20,476,801 shares. The stock had previously closed at $438.69.

Wall Street Analyst Weigh In

MSFT has been the topic of a number of recent research reports. New Street Research began coverage on Microsoft in a research note on Monday, June 10th. They set a “buy” rating and a $570.00 price objective on the stock. TD Cowen boosted their price target on Microsoft from $470.00 to $495.00 and gave the stock a “buy” rating in a report on Thursday, July 18th. Citigroup decreased their target price on Microsoft from $520.00 to $500.00 and set a “buy” rating on the stock in a research report on Wednesday, July 31st. BMO Capital Markets increased their target price on shares of Microsoft from $465.00 to $500.00 and gave the stock an “outperform” rating in a report on Friday, July 12th. Finally, Oppenheimer upped their price objective on shares of Microsoft from $450.00 to $500.00 and gave the stock an “outperform” rating in a research report on Friday, June 7th. Two equities research analysts have rated the stock with a hold rating and thirty-two have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $494.72.

Microsoft Stock Performance

The stock has a market capitalization of $3.24 trillion, a price-to-earnings ratio of 37.75, a price-to-earnings-growth ratio of 2.14 and a beta of 0.90. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.16. The company has a 50 day simple moving average of $421.28 and a 200-day simple moving average of $423.89.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Tuesday, July 30th. The software giant reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.90 by $0.05. Microsoft had a net margin of 35.96% and a return on equity of 35.95%. The business had revenue of $64.73 billion for the quarter, compared to analyst estimates of $64.38 billion. During the same period in the prior year, the firm earned $2.69 earnings per share. Microsoft’s revenue was up 15.2% on a year-over-year basis. As a group, equities research analysts expect that Microsoft Co. will post 13.04 EPS for the current fiscal 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 issued a $0.83 dividend. The ex-dividend date is Thursday, November 21st. This represents a $3.32 annualized dividend and a yield of 0.76%. This is a positive change from Microsoft’s previous quarterly dividend of $0.75. Microsoft’s dividend payout ratio is presently 25.97%.

Microsoft declared that its Board of Directors has authorized 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 shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other Microsoft news, insider Bradford L. Smith sold 40,000 shares of the company’s stock in a transaction on Monday, September 9th. The shares were sold at an average price of $402.59, for a total transaction 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 transaction was disclosed in a filing with the SEC, which is accessible through this link. In related news, insider Bradford L. Smith sold 40,000 shares of the stock in a transaction on 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 completion of the sale, the insider now directly owns 544,847 shares of the company’s stock, valued at approximately $219,349,953.73. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CMO Takeshi Numoto sold 2,500 shares of Microsoft stock in a transaction on Tuesday, September 10th. The stock was sold at an average price of $411.04, for a total transaction of $1,027,600.00. Following the transaction, the chief marketing officer now directly owns 50,000 shares in the company, valued at $20,552,000. The disclosure for this sale can be found here. Insiders have sold a total of 190,629 shares of company stock worth $77,916,485 in the last ninety days. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Christopher J. Hasenberg Inc grew its stake in shares of Microsoft by 169.2% during the 2nd quarter. Christopher J. Hasenberg Inc now owns 70 shares of the software giant’s stock worth $31,000 after acquiring an additional 44 shares during the period. Quarry LP purchased a new position in shares of Microsoft in the second quarter valued at $45,000. Richardson Capital Management LLC raised its stake in shares of Microsoft by 1,290.0% during the 1st quarter. Richardson Capital Management LLC now owns 139 shares of the software giant’s stock valued at $59,000 after purchasing an additional 129 shares during the period. Neo Ivy Capital Management purchased a new stake in Microsoft during the 4th quarter worth about $58,000. Finally, Innealta Capital LLC bought a new position in Microsoft in the 2nd quarter worth about $75,000. Hedge funds and other institutional investors own 71.13% of the company’s stock.

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.