Microsoft (NASDAQ:MSFT) Stock Price Up 1.2% - What's Next?

Key Points

• Microsoft's stock price increased by 1.2%, closing at $510.20, though the volume of shares traded was down 72% compared to the average.
• Recent analysts' ratings indicate a consensus "Moderate Buy", with a target price averaging $612.54 and several firms increasing their price objectives to as high as $640.00.
• The company announced a quarterly dividend of $0.83 to be paid on September 11th, reflecting an annualized yield of 0.7%.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) rose 1.2% on Friday . The stock traded as high as $510.73 and last traded at $510.20. Approximately 6,131,481 shares were traded during trading, a decline of 72% from the average daily volume of 22,200,193 shares. The stock had previously closed at $504.24.

Analyst Ratings Changes

MSFT has been the topic of several research reports. Needham & Company LLC reiterated a "buy" rating on shares of Microsoft in a report on Thursday, May 1st. Cantor Fitzgerald lifted their price objective on shares of Microsoft from $581.00 to $639.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Evercore ISI lifted their price objective on shares of Microsoft from $515.00 to $545.00 and gave the company an "outperform" rating in a report on Friday, July 25th. Westpark Capital reiterated a "hold" rating on shares of Microsoft in a report on Thursday, July 31st. Finally, TD Cowen lifted their price objective on shares of Microsoft from $580.00 to $640.00 and gave the company a "buy" rating in a report on Thursday, July 31st. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $612.54.

Microsoft Stock Up 0.6%

The stock's fifty day moving average is $505.43 and its two-hundred day moving average is $443.45. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.12. The company has a market capitalization of $3.77 trillion, a PE ratio of 37.19, a P/E/G ratio of 2.21 and a beta of 1.06.

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 for the quarter, topping analysts' consensus estimates of $3.35 by $0.30. The company had revenue of $76.44 billion for the quarter, compared to the consensus estimate of $73.79 billion. Microsoft had a net margin of 36.15% and a return on equity of 32.44%. The firm's quarterly revenue was up 18.1% on a year-over-year basis. During the same period in the previous year, the firm earned $2.95 EPS. Microsoft has set its Q1 2026 guidance at EPS. As a group, analysts predict that Microsoft Corporation will post 13.08 EPS for the current year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be issued a $0.83 dividend. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $3.32 annualized dividend and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is 24.34%.

Insiders Place Their Bets

In related news, EVP Takeshi Numoto sold 4,850 shares of Microsoft stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $527.32, for a total value of $2,557,502.00. Following the completion of the transaction, the executive vice president directly owned 39,111 shares in the company, valued at approximately $20,624,012.52. The trade was a 11.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last ninety days, insiders sold 8,850 shares of company stock valued at $4,406,512. Company insiders own 0.03% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Norges Bank purchased a new stake in Microsoft during the 4th quarter worth about $44,343,058,000. Kingstone Capital Partners Texas LLC grew its position in Microsoft by 564,387.1% during the second quarter. Kingstone Capital Partners Texas LLC now owns 90,549,369 shares of the software giant's stock worth $45,040,162,000 after buying an additional 90,533,328 shares in the last quarter. Nuveen LLC purchased a new position in Microsoft during the first quarter worth about $18,733,827,000. GAMMA Investing LLC grew its position in Microsoft by 40,290.4% during the first quarter. GAMMA Investing LLC now owns 46,695,303 shares of the software giant's stock worth $17,528,950,000 after buying an additional 46,579,693 shares in the last quarter. Finally, Laurel Wealth Advisors LLC grew its position in Microsoft by 49,640.3% during the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant's stock worth $14,905,904,000 after buying an additional 29,906,791 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.

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