Microsoft (NASDAQ:MSFT) Stock Price Up 1.1% - Should You Buy?
Microsoft Co. (NASDAQ:MSFT) saw a rise of 1.1% in its stock price during trading on Thursday. The stock reached a high of $454.24 before closing at $453.89. On this day, approximately 5,741,068 shares changed hands, which marks a significant decline of 72% from the average daily trading volume of 20,481,055 shares. The previous close was $448.99.
Analysts Update Recommendations
Recent reports from various research analysts provide insight into the outlook for Microsoft shares. For instance, StockNews.com upgraded the stock from a “hold” to a “buy” rating. Wedbush maintained an “outperform” rating and set a target price of $550.00 on November 19th. Truist Financial also reaffirmed its “buy” rating and issued a target price of $600.00 on October 28th. Meanwhile, Sanford C. Bernstein lowered its price target from $501.00 to $500.00 while keeping an “outperform” designation. Morgan Stanley increased its target price from $506.00 to $548.00 and rated the stock as “overweight.” Overall, two analysts suggest holding the stock, while twenty-seven recommend buying it. According to MarketBeat data, the average analyst rating is “Moderate Buy” with a consensus target price of $504.36.
Trading Performance Insights
As of the latest updates, Microsoft displays a debt-to-equity ratio of 0.15, a current ratio of 1.30, and a quick ratio of 1.29. The company’s market capitalization stands at approximately $3.38 trillion. Its price-to-earnings (P/E) ratio is reported at 37.45, while the price-to-earnings-growth (PEG) ratio stands at 2.37, and the stock has a beta of 0.90. Microsoft’s 50-day moving average is $422.87, and its 200-day moving average is $427.35. The last earnings report revealed that Microsoft earned $3.30 per share, exceeding analysts' expectations of $3.10 by $0.20. The company’s revenue for this quarter was $65.59 billion, outperforming the $64.57 billion forecasted by analysts. This represents a 16% increase in revenue compared to the same quarter in the previous year.
Dividend Announcement
Additionally, Microsoft announced that a quarterly dividend of $0.83 per share will be disbursed on March 13th to shareholders recorded as of February 20th. This annualizes to a total dividend of $3.32 per share, yielding approximately 0.73%. The current dividend payout ratio is 27.39%. In a notable financial maneuver, the Board of Directors approved a stock buyback program on September 16th, allowing for the repurchase of up to $60 billion in shares, which could indicate that the board views the stock as undervalued.
Insider Activity
On the insider trading front, CMO Takeshi Numoto sold 1,000 shares on November 22nd at an average price of $414.72, totaling approximately $414,720. This sale reduced his ownership to 57,511 shares valued just over $23.85 million. Similarly, EVP Christopher David Young sold 7,200 shares on November 12th at an average price of $423.66, totaling approximately $3.05 million and reducing his direct ownership to 103,366 shares valued around $43.79 million. Over the last three months, insiders have sold a total of 41,200 shares, valued at roughly $17.38 million. Currently, insiders hold 0.03% of the company's stock.
Institutional Holdings
In recent weeks, several institutional investors have adjusted their holdings in Microsoft. Christopher J. Hasenberg Inc increased its position by 169.2% in the second quarter, bringing its total to 70 shares valued at around $31,000 after adding 44 shares. Quarry LP and MidAtlantic Capital Management Inc created new stakes valued at approximately $45,000 and $62,000, respectively. Innealta Capital LLC also initiated a new stake valued at around $75,000. Furthermore, Bellevue Group AG enhanced its stake by 47.5% in the first quarter. Overall, institutional investors hold 71.13% of Microsoft’s stock.
Microsoft Overview
Microsoft Corporation primarily develops software, services, and devices on a global scale. Its Productivity and Business Processes segment covers various products and services, including Microsoft Teams, Office 365, and more.
Final Thoughts
In summary, Microsoft (NASDAQ:MSFT) experienced a notable increase in its stock price, prompting analysts to express optimism about the company's future. With various price target adjustments and positive earnings reports, investors may be considering whether to buy into the stock at this time.
Microsoft, Stock, Dividend