Microsoft (NASDAQ:MSFT) Stock Up 0.9% After Analyst Upgrade

Microsoft Corporation (NASDAQ:MSFT) saw its stock price increase by 0.9% during trading on Thursday. This rise followed an upgrade from Stifel Nicolaus, which raised its price target for Microsoft from $475.00 to $515.00. Stifel Nicolaus has given the stock a "buy" rating. During the trading session, Microsoft's stock peaked at $442.97 before closing at $441.34. A total of approximately 4,458,568 shares changed hands, which is significantly lower than the average daily volume of 20,514,602 shares. The previous closing price was $437.39.

Recent Analyst Ratings

Other analysts have also recently reviewed Microsoft's stock. KeyCorp revised its price target upward from $490.00 to $505.00 and assigned the stock an "overweight" rating in a report released on October 18th. StockNews.com raised its rating for Microsoft from "hold" to "buy" on December 12th. Piper Sandler reiterated an "overweight" rating, setting a price goal of $470.00 in their report dated October 31st. In contrast, Oppenheimer lowered its rating from "outperform" to "market perform" on October 8th. Additionally, Sanford C. Bernstein adjusted its price target, reducing it from $501.00 to $500.00 while maintaining an "outperform" rating as of October 25th. At present, two analysts have issued a "hold" rating, while twenty-seven have rated the stock as a "buy." According to MarketBeat, Microsoft holds a consensus rating of "Moderate Buy" and a consensus price target of $508.46.

Insider Transactions

In recent insider trading activities, CMO Takeshi Numoto sold 2,500 shares of Microsoft on December 9th at an average price of $447.41, totaling approximately $1,118,525. Following this transaction, Numoto owns around 49,352 shares valued at around $22 million, marking a 4.82% reduction in his position. Likewise, EVP Christopher David Young disposed of 7,200 shares on November 12th at an average price of $423.66 for a total of about $3.05 million. Young now holds 103,366 shares worth approximately $43.79 million, representing a decrease of 6.51% in his ownership. Over the last 90 days, insiders have sold a total of 41,200 shares valued at $17.38 million, with insiders owning approximately 0.03% of the stock.

Institutional Investors and Hedge Funds

A variety of hedge funds have recently altered their stakes in Microsoft. Net Worth Advisory Group bought a new position in Microsoft worth $2.65 million during the third quarter. British Columbia Investment Management Corp increased its investment in Microsoft by 1.6% in the second quarter, now owning 1,975,200 shares valued at about $882.82 million after acquiring an additional 31,401 shares. Jacobs & Co. CA raised its position by 0.9% in the third quarter, holding 96,021 shares worth $41.32 million after buying 880 shares. Evernest Financial Advisors LLC significantly increased its stake by 389.2% during the third quarter, now owning 53,770 shares worth around $23.14 million after purchasing an extra 42,778 shares. New Harbor Financial Group LLC also increased its stake by 55.9% in the second quarter, now owning 1,255 shares valued at about $561,000. Institutional investors collectively own approximately 71.13% of Microsoft’s shares.

Microsoft's Financial Overview

Microsoft boasts strong financial metrics, including a quick ratio of 1.29, a current ratio of 1.30, and a debt-to-equity ratio of 0.15. Its market capitalization is approximately $3.27 trillion, with a price-to-earnings (P/E) ratio of 36.34 and a price-to-earnings-to-growth (PEG) ratio of 2.38. The stock has a beta of 0.90. Microsoft's stock is currently trading at a 50-day moving average price of $426.19 and a 200-day average of $428.20. On October 30th, Microsoft reported its quarterly earnings, revealing earnings per share (EPS) of $3.30, surpassing the consensus estimate of $3.10 by $0.20. The company reported revenue of $65.59 billion, exceeding analyst predictions of $64.57 billion, marking a 16% year-over-year increase.

Dividends and Share Repurchase Plans

Recently, Microsoft announced a quarterly dividend of $0.83 per share, set to be distributed on March 13th to stockholders of record by February 20th. This dividend translates to an annualized amount of $3.32, which yields 0.75%. The company’s dividend payout ratio stands at 27.39%. Moreover, Microsoft’s Board of Directors initiated a stock repurchase program allowing the company to buy back up to $60 billion in shares, which reflects the board's belief that the market undervalues its stock.

About Microsoft

Microsoft Corporation is a technology giant that develops and supports software, services, devices, and solutions globally. Its products include Microsoft 365, Microsoft Teams, and various cloud services, among others.

Microsoft, Stock, Upgrade