Microsoft (NASDAQ:MSFT) Shares Gap Down Following Analyst Downgrade

Microsoft Co. (NASDAQ:MSFT - Get Free Report) shares gapped down prior to trading on Thursday after UBS Group lowered their price target on the stock from $525.00 to $510.00. The stock had previously closed at $442.33, but opened at $418.77. UBS Group currently has a buy rating on the stock. Microsoft shares last traded at $416.78, with a volume of 10,739,359 shares traded.

Several other analysts have also commented on the stock. Stifel Nicolaus increased their price target on shares of Microsoft from $475.00 to $515.00 and gave the company a "buy" rating in a research report on Wednesday, December 18th. The Goldman Sachs Group dropped their price target on Microsoft from $515.00 to $500.00 and set a "buy" rating for the company in a research report on Thursday, October 10th. Citigroup reduced their price objective on Microsoft from $500.00 to $497.00 and set a "buy" rating on the stock in a research report on Wednesday, October 23rd. Oppenheimer cut Microsoft from an "outperform" rating to a "market perform" rating in a research report on Tuesday, October 8th. Finally, KeyCorp raised their price target on shares of Microsoft from $490.00 to $505.00 and gave the stock an "overweight" rating in a research note on Friday, October 18th. Three research analysts have rated the stock with a hold rating and twenty-eight have issued a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $509.72.

Insider Activity

In related news, EVP Judson Althoff sold 25,000 shares of the stock in a transaction dated Friday, November 22nd. The stock was sold at an average price of $417.00, for a total value of $10,425,000.00. Following the completion of the transaction, the executive vice president now owns 117,294 shares of the company's stock, valued at approximately $48,911,598. This represents a 17.57 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CMO Takeshi Numoto sold 1,000 shares of Microsoft stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $414.72, for a total value of $414,720.00. Following the sale, the chief marketing officer now owns 57,511 shares in the company, valued at $23,850,961.92. This represents a 1.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 41,200 shares of company stock worth $17,383,892 over the last 90 days. Company insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Microsoft

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Fiduciary Advisors Inc. bought a new stake in shares of Microsoft in the 4th quarter valued at approximately $38,000. Christopher J. Hasenberg Inc increased its stake in Microsoft by 35.7% during the third quarter. Christopher J. Hasenberg Inc now owns 95 shares of the software giant's stock valued at $39,000 after purchasing an additional 25 shares during the last quarter. Quarry LP acquired a new stake in shares of Microsoft during the second quarter worth $45,000. IFS Advisors LLC lifted its position in shares of Microsoft by 53.8% in the 4th quarter. IFS Advisors LLC now owns 100 shares of the software giant's stock worth $42,000 after buying an additional 35 shares during the last quarter. Finally, Avondale Wealth Management lifted its position in shares of Microsoft by 144.4% in the 4th quarter. Avondale Wealth Management now owns 110 shares of the software giant's stock worth $46,000 after buying an additional 65 shares during the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft Trading Down 6.2 %

The firm has a market cap of $3.09 trillion, a P/E ratio of 34.24, a P/E/G ratio of 2.40 and a beta of 0.90. The business's 50-day moving average is $432.55 and its two-hundred day moving average is $424.95. The company has a current ratio of 1.30, a quick ratio of 1.29 and a debt-to-equity ratio of 0.15.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, January 29th. The software giant reported $3.23 earnings per share for the quarter, topping analysts' consensus estimates of $3.15 by $0.08. Microsoft had a return on equity of 34.56% and a net margin of 35.61%. During the same quarter in the previous year, the business posted $2.93 EPS. As a group, analysts expect that Microsoft Co. will post 12.9 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 13th. Stockholders of record on Thursday, February 20th will be given a dividend of $0.83 per share. The ex-dividend date is Thursday, February 20th. This represents a $3.32 annualized dividend and a dividend yield of 0.80%. Microsoft's dividend payout ratio is currently 26.73%.

Microsoft Company Profile

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.