Microsoft (NASDAQ:MSFT) Sets New 1-Year High After Analyst Upgrade

Key Points

• Microsoft's stock hit a new 52-week high after Evercore ISI raised its price target from $515 to $545, boosting the stock to trade as high as $516.26.
• Several analysts have upgraded their price targets for Microsoft, with a consensus rating of "Moderate Buy" and an average price target of $551.21.
• Microsoft reported a $3.46 EPS last quarter, exceeding analysts' estimates, with revenues of $70.07 billion representing a year-over-year increase of 13.3%.
• The company announced a quarterly dividend of $0.83, resulting in an annualized yield of 0.64%, with a payout ratio of 25.66%.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) shares reached a new 52-week high on Friday after Evercore ISI raised their price target on the stock from $515.00 to $545.00. Evercore ISI currently has an outperform rating on the stock. Microsoft traded as high as $516.26 and last traded at $517.15, with a volume of 9520667 shares traded. The stock had previously closed at $510.88.

MSFT has been the topic of a number of other reports. Jefferies Financial Group boosted their price objective on shares of Microsoft from $475.00 to $550.00 and gave the company a "buy" rating in a research report on Thursday, May 1st. Citigroup increased their price objective on shares of Microsoft from $605.00 to $613.00 and gave the stock a "buy" rating in a research note on Tuesday. Stifel Nicolaus increased their price objective on shares of Microsoft from $475.00 to $500.00 and gave the stock a "buy" rating in a research note on Thursday, May 1st. Raymond James Financial increased their price objective on shares of Microsoft from $480.00 to $490.00 and gave the stock an "outperform" rating in a research note on Thursday, May 1st. Finally, The Goldman Sachs Group increased their price objective on shares of Microsoft from $480.00 to $550.00 and gave the stock a "buy" rating in a research note on Wednesday, May 21st. Four analysts have rated the stock with a hold rating and twenty-nine have assigned a buy rating to the company. According to data from MarketBeat, Microsoft presently has an average rating of "Moderate Buy" and an average target price of $551.21.

Insider Buying and Selling at Microsoft

In related news, EVP Kathleen T. Hogan sold 21,500 shares of Microsoft stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $453.77, for a total value of $9,756,055.00. Following the transaction, the executive vice president directly owned 134,888 shares of the company's stock, valued at $61,208,127.76. This trade represents a 13.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Bradford L. Smith sold 75,000 shares of Microsoft stock in a transaction that occurred on Friday, May 2nd. The shares were sold at an average price of $436.05, for a total transaction of $32,703,750.00. Following the completion of the transaction, the insider directly owned 476,999 shares in the company, valued at $207,995,413.95. This trade represents a 13.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 135,743 shares of company stock valued at $60,224,683 in the last three months. Corporate insiders own 0.03% of the company's stock.

Institutional Trading of Microsoft

A number of hedge funds and other institutional investors have recently modified their holdings of MSFT. Newton One Investments LLC grew its position in shares of Microsoft by 66.7% during the 1st quarter. Newton One Investments LLC now owns 75 shares of the software giant's stock valued at $28,000 after acquiring an additional 30 shares during the period. Ball & Co Wealth Management Inc. bought a new position in shares of Microsoft in the fourth quarter worth approximately $31,000. Bulwark Capital Corp purchased a new stake in Microsoft during the second quarter valued at approximately $32,000. Westend Capital Management LLC increased its stake in shares of Microsoft by 386.7% in the second quarter. Westend Capital Management LLC now owns 73 shares of the software giant's stock worth $36,000 after purchasing an additional 58 shares in the last quarter. Finally, LSV Asset Management bought a new position in shares of Microsoft during the fourth quarter worth $44,000. Institutional investors own 71.13% of the company's stock.

Microsoft Stock Up 1.3%

The company has a debt-to-equity ratio of 0.12, a current ratio of 1.37 and a quick ratio of 1.36. The company's 50-day simple moving average is $482.33 and its 200 day simple moving average is $430.84. The firm has a market cap of $3.85 trillion, a P/E ratio of 39.96, a price-to-earnings-growth ratio of 2.30 and a beta of 1.04.

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

Microsoft Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be given a $0.83 dividend. The ex-dividend date is Thursday, August 21st. This represents a $3.32 dividend on an annualized basis and a yield of 0.64%. Microsoft's payout ratio is currently 25.66%.

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.

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