Microsoft (NASDAQ:MSFT) Shares Gap Up on Better-Than-Expected Earnings

Shares of Microsoft Co. (NASDAQ:MSFT - Get Free Report) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $395.26, but opened at $431.11. Microsoft shares last traded at $430.22, with a volume of 14,878,866 shares traded.

The software giant reported $3.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.22 by $0.24. The firm had revenue of $70.07 billion during the quarter, compared to analysts' expectations of $68.54 billion. Microsoft had a return on equity of 33.36% and a net margin of 35.43%. The business's revenue was up 13.3% on a year-over-year basis. During the same period in the prior year, the firm earned $2.94 EPS.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 15th will be issued a $0.83 dividend. The ex-dividend date is Thursday, May 15th. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.76%. Microsoft's payout ratio is 26.73%.

Analysts Set New Price Targets

Several analysts have commented on the company. DA Davidson upped their price objective on Microsoft from $450.00 to $500.00 and gave the company a "buy" rating in a research note on Thursday. Benchmark restated a "buy" rating on shares of Microsoft in a research note on Thursday. Bank of America lowered their price objective on shares of Microsoft from $510.00 to $480.00 and set a "buy" rating on the stock in a research report on Tuesday, April 15th. Stifel Nicolaus upped their price objective on shares of Microsoft from $475.00 to $500.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Scotiabank lifted their target price on shares of Microsoft from $470.00 to $500.00 and gave the company a "sector outperform" rating in a report on Thursday. Six investment analysts have rated the stock with a hold rating and thirty have assigned a buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $507.77.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of MSFT. Muirfield Wealth Advisors LLC grew its stake in shares of Microsoft by 0.5% in the fourth quarter. Muirfield Wealth Advisors LLC now owns 4,427 shares of the software giant's stock valued at $1,866,000 after buying an additional 24 shares in the last quarter. Retirement Financial Solutions LLC grew its position in Microsoft by 2.3% in the fourth quarter. Retirement Financial Solutions LLC now owns 1,050 shares of the software giant's stock valued at $443,000 after acquiring an additional 24 shares in the last quarter. Sequent Asset Management LLC raised its stake in shares of Microsoft by 1.3% during the third quarter. Sequent Asset Management LLC now owns 1,983 shares of the software giant's stock valued at $853,000 after purchasing an additional 25 shares during the period. Cypress Point Wealth Management LLC lifted its position in shares of Microsoft by 0.8% during the third quarter. Cypress Point Wealth Management LLC now owns 3,208 shares of the software giant's stock worth $1,380,000 after purchasing an additional 25 shares in the last quarter. Finally, Riverstone Advisors LLC boosted its stake in shares of Microsoft by 0.6% in the third quarter. Riverstone Advisors LLC now owns 4,510 shares of the software giant's stock valued at $1,941,000 after purchasing an additional 25 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

The company has a current ratio of 1.35, a quick ratio of 1.34 and a debt-to-equity ratio of 0.13. The stock has a market cap of $3.24 trillion, a PE ratio of 35.05, a P/E/G ratio of 2.21 and a beta of 1.00. The company's 50 day moving average is $384.93 and its 200-day moving average is $411.12.

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.