Microsoft (NASDAQ:MSFT) Shares Down 1% – What’s Next?

Microsoft Co. (NASDAQ:MSFT) traded down 1% during trading on Friday . The stock traded as low as $410.66 and last traded at $411.76. 6,593,278 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 21,859,436 shares. The stock had previously closed at $415.82.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. TD Cowen lowered their target price on shares of Microsoft from $495.00 to $475.00 and set a “buy” rating on the stock in a research note on Thursday, October 31st. Royal Bank of Canada reaffirmed an “outperform” rating and set a $500.00 price target on shares of Microsoft in a research report on Thursday, January 30th. Cantor Fitzgerald reissued an “overweight” rating and issued a $509.00 price objective on shares of Microsoft in a report on Wednesday, January 29th. DA Davidson reiterated a “neutral” rating and set a $425.00 price target on shares of Microsoft in a research note on Thursday, January 30th. Finally, BMO Capital Markets lowered their target price on Microsoft from $500.00 to $495.00 and set an “outperform” rating on the stock in a research report on Thursday, October 31st. Three analysts have rated the stock with a hold rating and twenty-seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and an average price target of $510.96.

Microsoft Price Performance

The firm has a market capitalization of $3.04 trillion, a P/E ratio of 32.89, a price-to-earnings-growth ratio of 2.21 and a beta of 0.90. The firm has a 50 day moving average price of $431.72 and a 200-day moving average price of $423.79. The company has a current ratio of 1.35, a quick ratio of 1.34 and a debt-to-equity ratio of 0.13.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, January 29th. The software giant reported $3.23 earnings per share for the quarter, topping the consensus estimate of $3.15 by $0.08. Microsoft had a return on equity of 33.36% and a net margin of 35.43%. During the same period in the prior year, the business earned $2.93 EPS. On average, analysts expect that Microsoft Co. will post 13.03 earnings per share for the current year.

Microsoft Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Shareholders of record on Thursday, February 20th will be issued a dividend of $0.83 per share. The ex-dividend date of this dividend is Thursday, February 20th. This represents a $3.32 annualized dividend and a yield of 0.81%. Microsoft’s payout ratio is currently 26.73%.

Insider Activity

In other news, EVP Christopher David Young sold 7,200 shares of the firm’s stock in a transaction on Tuesday, November 12th. The stock was sold at an average price of $423.66, for a total value of $3,050,352.00. Following the completion of the sale, the executive vice president now owns 103,366 shares of the company’s stock, valued at $43,792,039.56. This trade represents a 6.51 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CMO Takeshi Numoto sold 1,000 shares of Microsoft stock in a transaction dated Friday, November 22nd. The stock was sold at an average price of $414.72, for a total value of $414,720.00. Following the sale, the chief marketing officer now directly owns 57,511 shares of the company’s stock, valued at approximately $23,850,961.92. This represents a 1.71 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 41,200 shares of company stock worth $17,383,892. 0.03% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Microsoft

Several large investors have recently bought and sold shares of MSFT. Fiduciary Advisors Inc. acquired a new position in Microsoft during the fourth quarter worth $38,000. Christopher J. Hasenberg Inc lifted its stake in Microsoft by 35.7% during the third quarter. Christopher J. Hasenberg Inc now owns 95 shares of the software giant’s stock worth $39,000 after purchasing an additional 25 shares in the last quarter. Quarry LP acquired a new position in Microsoft during the second quarter worth $45,000. IFS Advisors LLC lifted its stake in Microsoft by 53.8% during the fourth quarter. IFS Advisors LLC now owns 100 shares of the software giant’s stock worth $42,000 after purchasing an additional 35 shares in the last quarter. Finally, Avondale Wealth Management lifted its stake in Microsoft by 144.4% during the fourth quarter. Avondale Wealth Management now owns 110 shares of the software giant’s stock worth $46,000 after purchasing an additional 65 shares in the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

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.