Microsoft (NASDAQ:MSFT) Reaches New 12-Month High Following Strong Earnings
Microsoft (NASDAQ:MSFT) shares hit a new 12-month high of $555.45 after reporting better-than-expected quarterly earnings of $3.65 EPS, surpassing estimates of $3.35. Revenue reached $76.44 billion, up 18.1% year-over-year. The company declared a quarterly dividend of $0.83, with a yield of 0.62%. Analysts have raised price targets, with a consensus rating of "Moderate Buy" and an average target of $598.61. Institutional investors hold 71.13% of the stock, which is currently valued at a market cap of $3.98 trillion.
Shares of Microsoft Corporation (NASDAQ:MSFT - Get Free Report) reached a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $555.45 and last traded at $539.00, with a volume of 17079432 shares changing hands. The stock had previously closed at $513.24.
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The software giant reported $3.65 EPS for the quarter, beating the consensus estimate of $3.35 by $0.30. Microsoft had a net margin of 35.79% and a return on equity of 32.74%. The firm had revenue of $76.44 billion during the quarter, compared to the consensus estimate of $73.79 billion. During the same period in the prior year, the firm posted $2.95 earnings per share. The company's quarterly revenue was up 18.1% compared to the same quarter last year.
Microsoft Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a $0.83 dividend. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.62%. Microsoft's dividend payout ratio is currently 25.66%.
Wall Street Analysts Forecast Growth
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A number of equities research analysts have recently commented on the stock. Loop Capital increased their price target on shares of Microsoft from $550.00 to $600.00 and gave the company a "buy" rating in a report on Thursday, July 24th. BMO Capital Markets increased their price target on shares of Microsoft from $550.00 to $650.00 and gave the company an "outperform" rating in a report on Thursday. Mizuho increased their price target on shares of Microsoft from $540.00 to $625.00 and gave the stock an "outperform" rating in a research report on Thursday. Wall Street Zen downgraded shares of Microsoft from a "buy" rating to a "hold" rating in a research report on Monday, June 30th. Finally, TD Cowen upped their price objective on Microsoft from $580.00 to $640.00 and gave the stock a "buy" rating in a research note on Thursday. Three research analysts have rated the stock with a hold rating and thirty have assigned a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $598.61.
View Our Latest Stock Analysis on MSFT
Insider Buying and Selling
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In related 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 transaction of $7,330,880.00. Following the sale, the executive vice president directly owned 98,010 shares in the company, valued at $44,906,221.80. This trade represents a 14.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Takeshi Numoto sold 3,000 shares of the business's stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $463.00, for a total transaction of $1,389,000.00. Following the completion of the transaction, the executive vice president owned 43,930 shares in the company, valued at $20,339,590. This trade represents a 6.39% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 135,743 shares of company stock worth $60,224,683 in the last quarter. Corporate insiders own 0.03% of the company's stock.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently bought and sold shares of MSFT. Newton One Investments LLC lifted its stake in Microsoft by 66.7% in the first quarter. Newton One Investments LLC now owns 75 shares of the software giant's stock worth $28,000 after acquiring an additional 30 shares during the period. Ball & Co Wealth Management Inc. purchased a new position in shares of Microsoft during the 4th quarter valued at about $31,000. Bulwark Capital Corp purchased a new position in Microsoft in the 2nd quarter worth approximately $32,000. Westend Capital Management LLC lifted its holdings in Microsoft by 386.7% in the 2nd quarter. Westend Capital Management LLC now owns 73 shares of the software giant's stock worth $36,000 after purchasing an additional 58 shares in the last quarter. Finally, LSV Asset Management purchased a new stake in shares of Microsoft during the 4th quarter worth approximately $44,000. 71.13% of the stock is currently owned by institutional investors.
Microsoft Stock Up 4.4%
The firm has a market capitalization of $3.98 trillion, a PE ratio of 41.43, a PEG ratio of 2.33 and a beta of 1.04. The company has a fifty day moving average price of $486.89 and a 200-day moving average price of $433.33. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.36 and a current ratio of 1.37.
About Microsoft
(Get Free Report)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.
Further Reading
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