Microsoft (NASDAQ:MSFT) Stock Price Down 1.8% – What’s Next?

Microsoft Corporation (NASDAQ:MSFT) fell 1.8% during mid-day trading on Friday . The company traded as low as $389.39 and last traded at $393.82. Approximately 32,649,291 shares traded hands during mid-day trading, a decline of 13% from the average session volume of 37,486,785 shares. The stock had previously closed at $401.10.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is getting support from reports of strong Azure demand, with a CIO survey showing cloud demand at multi-year highs and some analysts reiterating bullish long-term views on the company’s AI and cloud growth. Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey
• Positive Sentiment: Microsoft’s new partnership with 3M to use Expanded Beam Optical technology in Azure data centers could improve infrastructure efficiency and reinforce its AI buildout strategy. 3M (MMM) Teams Up With Microsoft As Its Undervalued Narrative Faces A Valuation Test
• Positive Sentiment: Wall Street remains broadly constructive on Microsoft despite recent pullbacks, with analysts still pointing to AI leadership, Azure, Microsoft 365, and earnings power as key long-term drivers. Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power

Analyst Upgrades and Downgrades

A number of research firms have weighed in on MSFT. Bank of America initiated coverage on shares of Microsoft in a report on Tuesday, March 24th. They set a “buy” rating and a $500.00 target price on the stock. Citizens Jmp started coverage on shares of Microsoft in a report on Monday, June 1st. They set an “outperform” rating and a $550.00 price target on the stock. Robert W. Baird reduced their price objective on shares of Microsoft from $540.00 to $500.00 and set an “outperform” rating on the stock in a research note on Wednesday, April 15th. TD Cowen reaffirmed a “buy” rating and set a $540.00 target price on shares of Microsoft in a report on Thursday, June 4th. Finally, China Renaissance reduced their price target on Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Forty-one analysts have rated the stock with a Buy rating and seven have assigned 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 $557.96.

Microsoft Stock Performance

The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. The stock’s 50 day moving average price is $400.70 and its 200 day moving average price is $411.43. The company has a market capitalization of $2.93 trillion, a P/E ratio of 23.44, a price-to-earnings-growth ratio of 1.20 and a beta of 1.13.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.44 billion. During the same period in the previous year, the business earned $3.46 EPS. The firm’s revenue was up 18.3% compared to the same quarter last year. As a group, equities analysts expect that Microsoft Corporation will post 16.71 EPS for the current year.

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft’s payout ratio is 21.67%.

Insiders Place Their Bets

In other news, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. The trade was a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 23,762 shares of company stock worth $10,508,361. Corporate insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

A number of institutional investors and hedge funds have recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC grew its stake in Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after acquiring an additional 20 shares during the period. Bernzott Capital Advisors bought a new stake in shares of Microsoft during the fourth quarter valued at approximately $34,000. Timmons Wealth Management LLC acquired a new position in shares of Microsoft during the fourth quarter worth approximately $36,000. Fairway Wealth LLC lifted its holdings in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares in the last quarter. Finally, Frankly Finances LLC acquired a new stake in Microsoft in the 2nd quarter valued at $35,000. Institutional investors 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).