Oppenheimer Weighs in on Microsoft Co.’s FY2021 Earnings (NASDAQ:MSFT)

Microsoft Co. (NASDAQ:MSFT) – Oppenheimer dropped their FY2021 earnings estimates for Microsoft in a report released on Tuesday, October 15th. Oppenheimer analyst T. Horan now expects that the software giant will earn $6.04 per share for the year, down from their previous estimate of $6.16. Oppenheimer currently has a “Outperform” rating and a $160.00 target price on the stock.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Thursday, July 18th. The software giant reported $1.37 EPS for the quarter, topping the consensus estimate of $1.21 by $0.16. Microsoft had a net margin of 31.18% and a return on equity of 39.26%. The business had revenue of $33.72 billion for the quarter, compared to analyst estimates of $32.80 billion. During the same period in the previous year, the firm earned $1.13 EPS. The business’s revenue for the quarter was up 12.1% compared to the same quarter last year.

Several other equities research analysts have also commented on MSFT. CIBC boosted their price objective on shares of Microsoft from $145.00 to $160.00 and gave the stock an “outperform” rating in a research report on Friday, July 19th. Wells Fargo & Co set a $160.00 price objective on shares of Microsoft and gave the stock a “buy” rating in a research report on Friday, July 19th. Wedbush set a $160.00 price objective on shares of Microsoft and gave the stock a “buy” rating in a research report on Thursday, October 10th. Argus boosted their price objective on shares of Microsoft to $158.00 and gave the stock a “buy” rating in a research report on Thursday, July 25th. Finally, ValuEngine lowered shares of Microsoft from a “buy” rating to a “hold” rating in a report on Wednesday, October 2nd. Three investment analysts have rated the stock with a hold rating, twenty-eight have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average price target of $152.97.

Microsoft stock opened at $137.41 on Friday. Microsoft has a 52 week low of $93.96 and a 52 week high of $142.37. The company has a quick ratio of 2.50, a current ratio of 2.53 and a debt-to-equity ratio of 0.71. The firm’s 50-day simple moving average is $138.14 and its 200 day simple moving average is $132.82. The firm has a market capitalization of $1,074.96 billion, a PE ratio of 28.93, a P/E/G ratio of 2.26 and a beta of 1.22.

Microsoft announced that its Board of Directors has initiated a stock buyback plan on Wednesday, September 18th that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the software giant to reacquire up to 3.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 12th. Stockholders of record on Thursday, November 21st will be paid a dividend of $0.51 per share. The ex-dividend date is Wednesday, November 20th. This represents a $2.04 dividend on an annualized basis and a dividend yield of 1.48%. This is an increase from Microsoft’s previous quarterly dividend of $0.46. Microsoft’s dividend payout ratio is currently 38.74%.

In other news, insider Frank H. Brod sold 4,000 shares of the company’s stock in a transaction dated Monday, July 29th. The shares were sold at an average price of $141.05, for a total transaction of $564,200.00. Following the completion of the transaction, the insider now owns 64,152 shares of the company’s stock, valued at approximately $9,048,639.60. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Kathleen T. Hogan sold 40,000 shares of the company’s stock in a transaction dated Tuesday, September 10th. The shares were sold at an average price of $135.25, for a total transaction of $5,410,000.00. Following the transaction, the executive vice president now directly owns 198,042 shares of the company’s stock, valued at approximately $26,785,180.50. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 318,757 shares of company stock valued at $43,735,918. Corporate insiders own 1.38% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Nuveen Asset Management LLC grew its position in Microsoft by 2,651.8% in the second quarter. Nuveen Asset Management LLC now owns 67,353,275 shares of the software giant’s stock valued at $9,022,645,000 after acquiring an additional 64,905,685 shares in the last quarter. Thoroughbred Financial Services LLC grew its position in Microsoft by 13,479.6% in the second quarter. Thoroughbred Financial Services LLC now owns 8,726,283 shares of the software giant’s stock valued at $872,628,000 after acquiring an additional 8,662,023 shares in the last quarter. Vanguard Group Inc. grew its position in Microsoft by 1.3% in the second quarter. Vanguard Group Inc. now owns 613,005,516 shares of the software giant’s stock valued at $82,118,218,000 after acquiring an additional 7,724,483 shares in the last quarter. Edgewood Management LLC acquired a new stake in Microsoft in the second quarter valued at approximately $620,230,000. Finally, Parnassus Investments CA grew its position in Microsoft by 87.9% in the second quarter. Parnassus Investments CA now owns 8,818,322 shares of the software giant’s stock valued at $1,181,303,000 after acquiring an additional 4,126,121 shares in the last quarter. 72.19% of the stock is owned by hedge funds and other institutional investors.

About Microsoft

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises.

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Earnings History and Estimates for Microsoft (NASDAQ:MSFT)

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