Microsoft (NASDAQ:MSFT) Reaches New 12-Month High - Should You Buy?

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) shares reached a new 52-week high on Tuesday . The stock traded as high as $507.39 and last traded at $506.51, with a volume of 5288329 shares traded. The stock had previously closed at $503.02.

Analyst Ratings Changes

Several research firms recently weighed in on MSFT. Evercore ISI set a $515.00 target price on Microsoft and gave the stock an "outperform" rating in a report on Wednesday, May 21st. Needham & Company LLC restated a "buy" rating on shares of Microsoft in a report on Thursday, May 1st. Wedbush boosted their target price on Microsoft from $515.00 to $600.00 and gave the stock an "outperform" rating in a report on Wednesday, June 25th. Stifel Nicolaus boosted their target price on Microsoft from $475.00 to $500.00 and gave the stock a "buy" rating in a report on Thursday, May 1st. Finally, BMO Capital Markets boosted their target price on Microsoft from $485.00 to $550.00 and gave the stock an "outperform" rating in a report on Thursday, July 10th. Four equities research analysts have rated the stock with a hold rating and twenty-nine have given a buy rating to the stock. According to data from MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and a consensus target price of $538.04.

Microsoft Stock Down 0.0%

The business has a 50-day simple moving average of $474.88 and a two-hundred day simple moving average of $427.28. The stock has a market capitalization of $3.76 trillion, a P/E ratio of 39.07, a PEG ratio of 2.30 and a beta of 1.04. The company has a quick ratio of 1.36, a current ratio of 1.37 and a debt-to-equity ratio of 0.12.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, April 30th. The software giant reported $3.46 EPS for the quarter, topping the consensus estimate of $3.22 by $0.24. The company had revenue of $70.07 billion for the quarter, compared to analysts' expectations of $68.54 billion. Microsoft had a return on equity of 32.74% and a net margin of 35.79%. The business's revenue for the quarter was up 13.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.94 earnings per share. Equities research analysts forecast that Microsoft Corporation will post 13.08 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be issued a dividend of $0.83 per share. This represents a $3.32 annualized dividend and a dividend yield of 0.66%. The ex-dividend date is Thursday, August 21st. Microsoft's payout ratio is presently 25.66%.

Insiders Place Their Bets

In related news, EVP Judson Althoff sold 16,000 shares of the firm's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $458.18, for a total value of $7,330,880.00. Following the transaction, the executive vice president owned 98,010 shares in the company, valued at $44,906,221.80. This trade represents a 14.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Takeshi Numoto sold 3,000 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $463.00, for a total value of $1,389,000.00. Following the completion of the transaction, the executive vice president owned 43,930 shares in the company, valued at approximately $20,339,590. This represents a 6.39% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 135,743 shares of company stock valued at $60,224,683 over the last 90 days. Corporate insiders own 0.03% of the company's stock.

Hedge Funds Weigh In On Microsoft

Several hedge funds have recently added to or reduced their stakes in MSFT. Newton One Investments LLC boosted its holdings in Microsoft by 66.7% during the first quarter. Newton One Investments LLC now owns 75 shares of the software giant's stock worth $28,000 after buying an additional 30 shares during the last quarter. Ball & Co Wealth Management Inc. bought a new position in Microsoft during the fourth quarter worth about $31,000. Bulwark Capital Corp bought a new position in Microsoft during the second quarter worth about $32,000. Westend Capital Management LLC boosted its holdings in Microsoft by 386.7% during the second quarter. Westend Capital Management LLC now owns 73 shares of the software giant's stock worth $36,000 after buying an additional 58 shares during the last quarter. Finally, Fiduciary Advisors Inc. bought a new position in Microsoft during the fourth quarter worth about $38,000. 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.