Wedbush Updates Microsoft Rating with Outperform Outlook

On Thursday, Wedbush reiterated its "outperform" rating for Microsoft's stock, which trades under the symbol MSFT on NASDAQ. In a recent report, the firm set a price target of $550.00 for the tech giant's shares. This target suggests a substantial potential upside of approximately 41.26% from the stock's previous closing price.

Other Analysts' Opinions

Microsoft's stock has attracted attention from various research firms. For instance, Morgan Stanley adjusted its price target down from $540.00 to $530.00 while maintaining an "overweight" rating on January 30th. Additionally, Piper Sandler kept an "overweight" rating on Microsoft with a price target of $520.00, highlighted in a research note dated January 27th. Royal Bank of Canada also reiterated an "outperform" rating with a $500.00 price target on January 30th. Meanwhile, Cantor Fitzgerald confirmed its "overweight" rating with a target price of $509.00 as of January 29th. Lastly, Mizuho reduced its target from $510.00 to $500.00, retaining an "outperform" rating.

Analyst Consensus

According to MarketBeat, 28 analysts have issued buy ratings, while three have given the stock a hold rating. The consensus rating for Microsoft is currently classified as a "Moderate Buy," with an average price target sitting at $509.03.

Recent Trading Performance

On the day of the report, Microsoft shares saw a gain of 0.4%, closing at $389.35. During the trading session, about 3,483,844 shares changed hands, compared to an average volume of 19,205,027 shares. The stock's price has ranged from a low of $376.91 to a high of $468.35 in the past year. The company reports a market capitalization of approximately $2.89 trillion, with a P/E ratio of 31.35 and a beta of 0.92.

Quarterly Earnings Highlights

Microsoft recently announced its earnings for the last quarter on January 29th. The company reported earnings per share (EPS) of $3.23, surpassing the analysts' expectations of $3.15 by $0.08. The firm also showcased impressive financial health with a net margin of 35.43% and return on equity of 33.36%. The previous year, Microsoft had EPS of $2.93. Analysts predict that for the current fiscal year, Microsoft will achieve an average of 13.08 earnings per share.

Institutional Investor Moves

A number of institutional investors have adjusted their positions in Microsoft recently. Norges Bank made a significant investment, purchasing shares valued at approximately $44.34 billion in the fourth quarter. Further, International Assets Investment Management LLC dramatically increased its stake by growing its holdings by 48,526.1% during the third quarter. This firm now holds over 38 million shares worth around $16.57 billion after acquiring an additional 38.4 million shares. Proficio Capital Partners LLC also reported a remarkable increase of 34,643.3% in their holdings in the fourth quarter, now owning 16.8 million shares valued at approximately $7.09 billion. The institutional ownership in Microsoft stands at about 71.13%.

About Microsoft

Microsoft Corporation is a global leader in technology, developing and supporting a wide range of software, services, and devices. The company is well-known for its Productivity and Business Processes segment, which includes offerings like Office and Microsoft Teams, among others.

Wedbush, Microsoft, Stock