Microsoft (NASDAQ:MSFT) CEO Sells $75,315,699.90 in Stock

Key Points

• Microsoft CEO Satya Nadella sold $75.3 million in stock, representing a 15.87% decrease in his ownership, leaving him with approximately 790,852 shares.
• Microsoft has reported strong quarterly earnings, with a $3.65 EPS, surpassing analysts' estimates, and a revenue growth of 18.1% compared to last year.
• Wall Street analysts show a positive outlook on the stock, raising target prices and maintaining a majority buy rating for Microsoft shares.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) CEO Satya Nadella sold 149,205 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $504.78, for a total transaction of $75,315,699.90. Following the sale, the chief executive officer owned 790,852 shares in the company, valued at approximately $399,206,272.56. The trade was a 15.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Microsoft Price Performance

Shares of MSFT stock traded up $2.62 on Thursday, hitting $507.97. 15,490,012 shares of the stock traded hands, compared to its average volume of 22,202,090. The firm has a market cap of $3.78 trillion, a price-to-earnings ratio of 37.24, a PEG ratio of 2.21 and a beta of 1.04. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.35 and a quick ratio of 1.35. The firm has a 50 day simple moving average of $509.74 and a two-hundred day simple moving average of $449.32. Microsoft Corporation has a 52 week low of $344.79 and a 52 week high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The software giant reported $3.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.35 by $0.30. Microsoft had a return on equity of 32.44% and a net margin of 36.15%.The business had revenue of $76.44 billion during the quarter, compared to analyst estimates of $73.79 billion. During the same quarter in the prior year, the business posted $2.95 EPS. Microsoft's revenue for the quarter was up 18.1% compared to the same quarter last year. Microsoft has set its Q1 2026 guidance at EPS. As a group, equities research analysts predict that Microsoft Corporation will post 13.08 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be given a dividend of $0.83 per share. The ex-dividend date is Thursday, August 21st. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's dividend payout ratio is currently 24.34%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Citigroup lifted their target price on Microsoft from $605.00 to $613.00 and gave the stock a "buy" rating in a report on Tuesday, July 22nd. Truist Financial lifted their price objective on Microsoft from $650.00 to $675.00 and gave the stock a "buy" rating in a research note on Monday, August 18th. Wall Street Zen upgraded Microsoft from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. Raymond James Financial raised their target price on shares of Microsoft from $490.00 to $570.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Finally, Wells Fargo & Company reaffirmed an "overweight" rating and set a $650.00 price target (up previously from $600.00) on shares of Microsoft in a research note on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and an average target price of $612.54.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. V. M. Manning & CO. Inc. purchased a new stake in shares of Microsoft in the second quarter worth approximately $1,258,000. American Trust grew its position in Microsoft by 8.0% in the 2nd quarter. American Trust now owns 38,118 shares of the software giant's stock valued at $18,960,000 after acquiring an additional 2,817 shares during the last quarter. PVG Asset Management Corp increased its stake in Microsoft by 24.7% in the second quarter. PVG Asset Management Corp now owns 1,636 shares of the software giant's stock worth $814,000 after purchasing an additional 324 shares during the period. Evolution Wealth Management Inc. bought a new stake in shares of Microsoft during the second quarter worth $960,000. Finally, Total Investment Management Inc. lifted its position in shares of Microsoft by 1.8% during the second quarter. Total Investment Management Inc. now owns 1,741 shares of the software giant's stock worth $866,000 after purchasing an additional 30 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.

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