Microsoft (NASDAQ:MSFT) Stock Price Up 0.5% - Still a Buy?

Microsoft Co. (NASDAQ:MSFT - Get Free Report)'s share price shot up 0.5% on Thursday . The company traded as high as $426.97 and last traded at $424.56. 15,036,448 shares were traded during trading, a decline of 14% from the average session volume of 17,460,740 shares. The stock had previously closed at $422.37.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on MSFT shares. StockNews.com upgraded Microsoft from a "hold" rating to a "buy" rating in a research report on Monday. Stifel Nicolaus boosted their price target on shares of Microsoft from $475.00 to $515.00 and gave the company a "buy" rating in a report on Wednesday, December 18th. The Goldman Sachs Group dropped their price objective on shares of Microsoft from $515.00 to $500.00 and set a "buy" rating on the stock in a report on Thursday, October 10th. Truist Financial reissued a "buy" rating and set a $600.00 target price on shares of Microsoft in a research note on Monday, October 28th. Finally, Wells Fargo & Company reaffirmed a "buy" rating on shares of Microsoft in a report on Friday, October 18th. Two investment analysts have rated the stock with a hold rating and twenty-eight have given a buy rating to the company. Based on data from MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $511.62.

Microsoft Stock Performance

The company has a quick ratio of 1.29, a current ratio of 1.30 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $3.16 trillion, a PE ratio of 35.03, a P/E/G ratio of 2.37 and a beta of 0.90. The firm's 50-day moving average price is $428.29 and its two-hundred day moving average price is $427.61.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, October 30th. The software giant reported $3.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.10 by $0.20. Microsoft had a net margin of 35.61% and a return on equity of 34.56%. The company had revenue of $65.59 billion for the quarter, compared to the consensus estimate of $64.57 billion. During the same period in the previous year, the business earned $2.99 EPS. The company's revenue was up 16.0% on a year-over-year basis. As a group, research analysts predict that Microsoft Co. will post 12.93 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Investors of record on Thursday, February 20th will be given a dividend of $0.83 per share. This represents a $3.32 dividend on an annualized basis and a yield of 0.78%. The ex-dividend date of this dividend is Thursday, February 20th. Microsoft's payout ratio is presently 27.39%.

Microsoft declared that its board has approved a stock repurchase plan on Monday, September 16th that authorizes the company to buyback $60.00 billion in outstanding shares. This buyback authorization authorizes the software giant to purchase up to 1.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, EVP Christopher David Young sold 7,200 shares of the stock in a transaction dated Tuesday, November 12th. The stock was sold at an average price of $423.66, for a total transaction of $3,050,352.00. Following the transaction, the executive vice president now owns 103,366 shares of the company's stock, valued at approximately $43,792,039.56. This represents a 6.51 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CMO Takeshi Numoto sold 1,000 shares of the business's 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 completion of the sale, the chief marketing officer now owns 57,511 shares of the company's stock, valued at approximately $23,850,961.92. This trade represents a 1.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 41,200 shares of company stock worth $17,383,892. Corporate insiders own 0.03% of the company's stock.

Institutional Trading of Microsoft

A number of institutional investors and hedge funds have recently modified their holdings of the company. First National Bank Sioux Falls boosted its holdings in Microsoft by 0.4% during the second quarter. First National Bank Sioux Falls now owns 6,340 shares of the software giant's stock valued at $2,834,000 after acquiring an additional 24 shares during the period. BCK Partners Inc. grew its holdings in Microsoft by 1.8% in the 3rd quarter. BCK Partners Inc. now owns 1,353 shares of the software giant's stock valued at $582,000 after buying an additional 24 shares during the last quarter. Flagship Private Wealth LLC increased its position in Microsoft by 2.8% in the 2nd quarter. Flagship Private Wealth LLC now owns 913 shares of the software giant's stock worth $408,000 after buying an additional 25 shares during the period. Massachusetts Wealth Management lifted its holdings in shares of Microsoft by 0.3% during the second quarter. Massachusetts Wealth Management now owns 9,640 shares of the software giant's stock worth $4,309,000 after buying an additional 25 shares during the last quarter. Finally, Deseret Mutual Benefit Administrators boosted its position in shares of Microsoft by 0.8% in the second quarter. Deseret Mutual Benefit Administrators now owns 3,255 shares of the software giant's stock valued at $1,455,000 after acquiring an additional 25 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.

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.