Microsoft (NASDAQ:MSFT) Stock Price Up 1.8% – Still a Buy?

Microsoft Corporation (NASDAQ:MSFT) shares were up 1.8% during mid-day trading on Tuesday . The stock traded as high as $377.22 and last traded at $373.94. 39,431,247 shares were traded during mid-day trading, an increase of 9% from the average daily volume of 36,088,836 shares. The stock had previously closed at $367.34.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is expanding its AI footprint through new enterprise partnerships, including ICON plc naming Microsoft as a preferred technology partner and FPT deepening its collaboration with Microsoft across Asia. ICON plc Selects Microsoft (MSFT) As Preferred Technology Partner
• Positive Sentiment: Microsoft’s AI and cloud strategy is still drawing support from analysts and bullish commentators, who argue the recent selloff may be overdone and that the company’s AI revenue run rate supports upside over time. Microsoft’s $37 Billion AI Run Rate Points to 33% Upside Potential
• Neutral Sentiment: Microsoft’s education-focused AI report and related product announcements suggest continued adoption momentum, but the news is not likely to move the stock much on its own. Microsoft’s New AI in Education Report highlights widespread adoption and increasing demand for support
• Negative Sentiment: New peer-reviewed criticism in Nature challenged Microsoft’s quantum-computing breakthrough claims, raising fresh doubts about an area the company had highlighted as a long-term growth driver. Microsoft’s quantum computing technology called into question, again
• Negative Sentiment: EU regulators said Microsoft’s cloud unit should be treated as a “gatekeeper” under the Digital Markets Act, which could bring stricter rules on self-preferencing, interoperability, and data portability. Amazon, Microsoft cloud computing services should fall under EU tech rules, EU regulators say
• Negative Sentiment: Microsoft continues to face class-action and securities-fraud headlines tied to alleged investor harm, adding legal overhang and sentiment pressure. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm

Wall Street Analysts Forecast Growth

MSFT has been the topic of a number of recent analyst reports. Mizuho lowered their price target on shares of Microsoft from $620.00 to $515.00 and set an “outperform” rating on the stock in a report on Tuesday, April 14th. New Street Research reduced their price objective on shares of Microsoft from $675.00 to $600.00 and set a “buy” rating for the company in a research note on Thursday, April 30th. TD Cowen reissued a “buy” rating and set a $540.00 target price on shares of Microsoft in a research report on Thursday, June 4th. Benchmark restated a “buy” rating and issued a $525.00 target price (up from $450.00) on shares of Microsoft in a research note on Tuesday, April 28th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $575.00 price target on shares of Microsoft in a report on Wednesday, May 13th. Forty-one equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $560.86.

Microsoft Stock Down 2.1%

The stock has a market capitalization of $2.66 trillion, a PE ratio of 21.30, a price-to-earnings-growth ratio of 1.35 and a beta of 1.11. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The company’s 50-day moving average is $411.93 and its 200 day moving average is $422.73.

Microsoft (NASDAQ:MSFT) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. The company had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. Microsoft’s revenue was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.46 EPS. As a group, analysts anticipate that Microsoft Corporation will post 16.76 EPS for the current year.

Microsoft Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 1.0%. Microsoft’s payout ratio is 21.67%.

Insider Activity at Microsoft

In related news, EVP Takeshi Numoto sold 4,500 shares of the firm’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of the transaction, the executive vice president owned 47,468 shares in the company, valued at $19,122,009.12. This trade represents a 8.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the sale, the executive vice president directly owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 23,762 shares of company stock valued at $10,508,361 in the last ninety days. Company insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Ballast Advisors LLC lifted its holdings in shares of Microsoft by 1.7% in the 1st quarter. Ballast Advisors LLC now owns 25,929 shares of the software giant’s stock valued at $9,598,000 after buying an additional 435 shares during the period. MTM Financial Group LLC grew its holdings in Microsoft by 6.6% during the first quarter. MTM Financial Group LLC now owns 1,372 shares of the software giant’s stock worth $508,000 after acquiring an additional 85 shares during the period. Southern Financial Group LLC grew its holdings in Microsoft by 23.1% during the first quarter. Southern Financial Group LLC now owns 1,947 shares of the software giant’s stock worth $721,000 after acquiring an additional 365 shares during the period. Steelhead Wealth Management LLC purchased a new position in Microsoft during the first quarter valued at approximately $467,000. Finally, S&A Financial Services Inc. purchased a new position in Microsoft during the first quarter valued at approximately $1,039,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).