Microsoft (NASDAQ:MSFT) Shares Down 2% - Here's Why

Shares of Microsoft Co. (NASDAQ:MSFT - Get Free Report) dropped 2% during trading on Friday . The stock traded as low as $383.20 and last traded at $382.62. Approximately 3,718,191 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 19,252,358 shares. The stock had previously closed at $390.58.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Guggenheim reaffirmed a "neutral" rating on shares of Microsoft in a research note on Friday, January 24th. UBS Group dropped their price target on Microsoft from $525.00 to $510.00 and set a "buy" rating on the stock in a research report on Thursday, January 30th. Tigress Financial lifted their price objective on Microsoft from $550.00 to $595.00 and gave the company a "buy" rating in a report on Thursday, March 20th. DA Davidson raised shares of Microsoft from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $425.00 to $450.00 in a research note on Thursday, March 13th. Finally, Scotiabank initiated coverage on shares of Microsoft in a report on Thursday, March 20th. They issued a "sector outperform" rating and a $470.00 price target for the company. Three analysts have rated the stock with a hold rating and twenty-eight have given a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $508.86.

Microsoft Stock Performance

The company has a current ratio of 1.35, a quick ratio of 1.34 and a debt-to-equity ratio of 0.13. The company has a market cap of $2.79 trillion, a PE ratio of 30.22, a price-to-earnings-growth ratio of 2.21 and a beta of 0.92. The firm's fifty day moving average is $405.52 and its 200 day moving average is $419.10.

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Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, January 29th. The software giant reported $3.23 EPS for the quarter, beating the consensus estimate of $3.15 by $0.08. Microsoft had a return on equity of 33.36% and a net margin of 35.43%. During the same period in the prior year, the company posted $2.93 earnings per share. As a group, research analysts predict that Microsoft Co. will post 13.08 EPS for the current fiscal year.

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 15th will be issued a dividend of $0.83 per share. This represents a $3.32 annualized dividend and a dividend yield of 0.88%. The ex-dividend date of this dividend is Thursday, May 15th. Microsoft's dividend payout ratio is currently 26.73%.

Hedge Funds Weigh In On Microsoft

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Ball & Co Wealth Management Inc. acquired a new stake in shares of Microsoft during the 4th quarter worth about $31,000. Fiduciary Advisors Inc. purchased a new stake in shares of Microsoft in the 4th quarter valued at approximately $38,000. IFS Advisors LLC lifted its holdings 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 acquiring an additional 35 shares during the last quarter. LSV Asset Management purchased a new position in shares of Microsoft during the 4th quarter worth approximately $44,000. Finally, Avondale Wealth Management raised its position in Microsoft by 144.4% in the fourth quarter. Avondale Wealth Management now owns 110 shares of the software giant's stock valued at $46,000 after purchasing an additional 65 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

About Microsoft

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.