Microsoft (NASDAQ:MSFT) Stock Price Up 1.8% - Here's Why

Key Points

• Microsoft's stock price increased by 1.8% to $533.80, despite a trading volume of around 7.48 million shares, significantly lower than the average daily volume.
• Analyst reports have boosted Microsoft's price target, with Evercore ISI raising it from $515 to $545, and Barclays pushing theirs from $550 to $625, contributing to a consensus "Moderate Buy" rating and an average price target of $609.86.
• The company announced a quarterly dividend of $0.83 per share, set to be paid on September 11th, reflecting a 0.6% dividend yield and a payout ratio of 24.34%.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report)'s share price rose 1.8% on Monday . The company traded as high as $536.90 and last traded at $533.80. Approximately 7,488,320 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 22,329,031 shares. The stock had previously closed at $524.11.

Wall Street Analyst Weigh In

MSFT has been the topic of a number of recent analyst reports. Evercore ISI increased their price objective on shares of Microsoft from $515.00 to $545.00 and gave the stock an "outperform" rating in a research report on Friday, July 25th. Wall Street Zen upgraded shares of Microsoft from a "hold" rating to a "buy" rating in a research note on Saturday. The Goldman Sachs Group upped their target price 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. Barclays increased their price objective on shares of Microsoft from $550.00 to $625.00 and gave the company an "overweight" rating in a research note on Thursday. Finally, UBS Group reiterated a "buy" rating and set a $650.00 price objective (up from $600.00) on shares of Microsoft in a research note on Thursday. Two analysts have rated the stock with a hold rating and thirty-one have issued a buy rating to the stock. Based on data from MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and an average price target of $609.86.

Microsoft Stock Up 2.5%

The company has a market capitalization of $3.99 trillion, a price-to-earnings ratio of 39.41, a PEG ratio of 2.31 and a beta of 1.06. The stock's fifty day simple moving average is $489.94 and its two-hundred day simple moving average is $435.01. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.35 and a quick ratio of 1.35.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The software giant reported $3.65 earnings per share for the quarter, beating the consensus estimate of $3.35 by $0.30. Microsoft had a net margin of 36.15% and a return on equity of 32.44%. The company had revenue of $76.44 billion during the quarter, compared to analyst estimates of $73.79 billion. During the same quarter last year, the firm posted $2.95 EPS. The business's revenue for the quarter was up 18.1% on a year-over-year basis. On average, sell-side analysts predict that Microsoft Corporation will post 13.08 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The firm also recently disclosed 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. This represents a $3.32 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, August 21st. Microsoft's dividend payout ratio (DPR) is presently 24.34%.

Insider Buying and Selling at Microsoft

In other news, EVP Judson Althoff sold 16,000 shares of Microsoft stock in a transaction that occurred on Monday, May 19th. The shares were 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 of the company's stock, 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 document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Amy Coleman sold 13,243 shares of the company's stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $452.01, for a total value of $5,985,968.43. Following the transaction, the executive vice president owned 43,100 shares of the company's stock, valued at approximately $19,481,631. This trade represents a 23.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 54,743 shares of company stock worth $24,921,913 in the last ninety days. Insiders own 0.03% of the company's stock.

Hedge Funds Weigh In On Microsoft

A number of institutional investors and hedge funds have recently bought and sold shares of MSFT. Bulwark Capital Corp bought a new stake in Microsoft in the 2nd quarter valued at $32,000. Westend Capital Management LLC lifted its position in Microsoft by 386.7% during the 2nd quarter. Westend Capital Management LLC now owns 73 shares of the software giant's stock worth $36,000 after buying an additional 58 shares in the last quarter. Ball & Co Wealth Management Inc. bought a new stake in shares of Microsoft in the 4th quarter valued at about $31,000. Newton One Investments LLC boosted its holdings in shares of Microsoft by 66.7% in the first quarter. Newton One Investments LLC now owns 75 shares of the software giant's stock valued at $28,000 after buying an additional 30 shares during the period. Finally, LSV Asset Management bought a new position in shares of Microsoft during the 4th quarter worth approximately $44,000. 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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