Microsoft (NASDAQ:MSFT) Stock Price Down 0.1% - Here's Why

On Thursday, the stock price of Microsoft Corporation (NASDAQ:MSFT) declined by 0.1%. The stock hit a low of $397.93 before last trading at $399.22. During the day's trading, around 5,857,542 shares changed hands, marking a significant drop of 74% compared to the average daily volume of 22,273,707 shares. Previously, the stock had closed at $399.73.

Analysts Set New Price Targets

Microsoft has been the focus of various research reports recently. On November 19th, Wedbush maintained an "outperform" rating, setting a target price of $550.00 for the stock. Piper Sandler also reiterated an "overweight" rating with a price target of $520.00 on January 27th. Additionally, the Royal Bank of Canada reaffirmed an "outperform" rating and set their target price at $500.00 on January 30th. DA Davidson provided a "neutral" rating at a target of $425.00, while Cantor Fitzgerald upgraded their rating to "overweight" with a target price of $509.00. Among analysts, four issued hold ratings while twenty-six recommended buying the stock. Currently, MarketBeat reports a consensus rating of "Moderate Buy" and an average target price of $510.96.

Microsoft Price Performance

The 50-day simple moving average for Microsoft stocks stands at $420.68, with a 200-day simple moving average of $422.62. Microsoft boasts a market capitalization of approximately $2.95 trillion, a P/E ratio of 31.97, and a P/E/G ratio of 2.21, with a beta of 0.90. The company's debt-to-equity ratio is 0.13, with a quick ratio of 1.34 and a current ratio of 1.35.

On January 29th, Microsoft released its quarterly earnings, reporting an EPS of $3.23, which exceeded the consensus estimate of $3.15 by $0.08. The company achieved a net margin of 35.43% and a return on equity of 33.36%. For the current fiscal year, analysts anticipate that Microsoft will report an EPS of 13.08.

Microsoft Dividend Announcement

Recently, Microsoft announced a quarterly dividend of $0.83 per share, payable on March 13th to shareholders of record on February 20th. This dividend represents an annualized amount of $3.32, yielding 0.84%. The ex-dividend date falls on February 20th. Currently, Microsoft has a dividend payout ratio of 26.73%.

Insider Activity at Microsoft

In related news, Microsoft's Chief Marketing Officer, Takeshi Numoto, sold 2,500 shares of the stock on December 2nd at an average price of $430.87, collecting a total of $1,077,175.00 from the sale. Following this transaction, Numoto now holds 53,852 shares valued at approximately $23,203,211.24, reflecting a 4.44% reduction in his holdings. This transaction was reported to the Securities & Exchange Commission. In the previous quarter, insiders sold a total of 7,000 shares valued at $3,070,340, with insiders representing 0.03% of Microsoft’s total stock.

Institutional Inflows and Outflows

Numerous institutional investors have made adjustments to their positions in Microsoft recently. Vanguard Group Inc. increased its stake by 1.5% in the fourth quarter, now owning 684,071,705 shares worth about $288,336,224,000 after acquiring an additional 10,431,988 shares. Geode Capital Management LLC boosted its holdings by 1.9%, possessing 168,128,024 shares now valued at $70,720,874,000 after obtaining an additional 3,103,212 shares. Norges Bank initiated a new stake in Microsoft valued at approximately $44,343,058,000 during the last quarter. Northern Trust Corp expanded its share count by 16.1%, presently holding 83,787,746 shares worth $35,316,535,000 after acquiring an additional 11,600,470 shares. Lastly, UBS Asset Management Americas LLC increased its stake by 9.8%, currently owning 59,961,337 shares valued at $25,273,704,000. Notably, institutional investors control 71.13% of Microsoft stock.

About Microsoft

Microsoft Corporation develops and supports a range of software, services, devices, and solutions for customers worldwide. Its Productivity and Business Processes segment includes offerings such as Office, Exchange, SharePoint, Microsoft Teams, and more. The company continues to innovate and expand its services to meet the growing demands of users worldwide.

Should You Invest $1,000 in Microsoft Right Now?

Before making an investment decision regarding Microsoft, it's important to conduct thorough research. Although Microsoft has a Moderate Buy rating among analysts, some top-rated analysts are indicating that there may be better opportunities in other stocks right now.

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