Microsoft (NASDAQ:MSFT) Stock Price Up 1.1% - Should You Buy?

Microsoft Corporation (NASDAQ:MSFT) saw its stock increase by 1.1% during trading on Thursday. The share price reached a high of $454.24 before closing at $453.89. The trading volume for the day was approximately 5,741,068 shares, which is significantly lower than the average daily volume of 20,481,055 shares. The stock's previous closing price was $448.99.

Analysts Set New Price Targets

Several research analysts have provided updates on Microsoft shares. StockNews.com upgraded Microsoft from a "hold" to a "buy" rating in a report issued on Thursday. Additionally, Wedbush maintained an "outperform" rating and set a target price of $550.00. Truist Financial also reiterated a "buy" rating, with a target of $600.00. Meanwhile, Sanford C. Bernstein lowered its price target from $501.00 to $500.00 while keeping an "outperform" rating. Morgan Stanley adjusted their price target from $506.00 to $548.00 and rated the stock as "overweight." Overall, out of numerous analysts, two rated the stock as a hold while twenty-seven recommended it as a buy. MarketBeat data shows an average rating of "Moderate Buy" with a target price of $504.36.

Microsoft's Financials and Ratios

The company's debt-to-equity ratio is 0.15, with a current ratio of 1.30 and a quick ratio of 1.29. Microsoft has a market capitalization of $3.38 trillion, a PE ratio of 37.45, and a price-to-earnings-growth ratio of 2.37. The 50-day moving average price stands at $422.87, while the 200-day moving average is $427.35.

This technology giant reported its earnings on October 30th, revealing earnings per share (EPS) of $3.30 for the quarter, beating the analysts' expected EPS of $3.10 by $0.20. The company's revenue in that quarter totaled $65.59 billion, exceeding the anticipated $64.57 billion. The firm's revenue increased by 16.0% year-over-year. Analysts estimate that Microsoft will report 12.93 EPS for the current fiscal year.

Dividend Announcement

Microsoft recently declared a quarterly dividend to be distributed on Thursday, March 13th, with stockholders of record on February 20th set to receive $0.83 per share. This results in an annual dividend of $3.32, yielding 0.73% at the current share price. The company's dividend payout ratio is currently 27.39%.

The Board of Directors has also authorized a stock buyback program worth $60.00 billion, allowing Microsoft to repurchase up to 1.9% of its shares through open market transactions. Such buyback programs signal that the board believes the shares are undervalued.

Insider Activity

Recent insider trading includes CMO Takeshi Numoto selling 1,000 shares at an average price of $414.72, totaling $414,720.00. Following this sale, he holds 57,511 shares valued at approximately $23.85 million. Moreover, EVP Christopher David Young sold 7,200 shares at an average price of $423.66. These transactions highlight a 6.51% decrease in Young's stock ownership, as he now holds about 103,366 shares worth around $43.79 million. Over the past three months, insiders have sold 41,200 shares amounting to $17,383,892 in total, representing 0.03% of the company's stock currently owned by insiders.

Institutional Investment Changes

Several institutional investors have recently adjusted their stock positions in Microsoft. Christopher J. Hasenberg Inc increased its holdings by 169.2% in the second quarter, now owning 70 shares valued at $31,000 after adding 44 shares last quarter. Quarry LP acquired a new stake valued at about $45,000, while MidAtlantic Capital Management Inc. made a new investment worth roughly $62,000. Additionally, Bellevue Group AG grew their stake by 47.5% in the first quarter. Institutional investors own 71.13% of Microsoft's stock.

Company Profile

Microsoft Corporation develops and supports a variety of software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment includes services such as Microsoft Teams, Microsoft 365, and other business-centric offerings.

Conclusion

As Microsoft stock sees a recent uptick, prospective investors may consider analyst reviews and market trends before making investment decisions. While the stock presently holds a "Moderate Buy" rating, analysts have identified other stocks with better potential returns. It is wise to evaluate all options and consult with financial advisors.

Microsoft, Stock, Trading