Microsoft (NASDAQ:MSFT) Shares Down 1.5% – What’s Next?

Shares of Microsoft Corporation (NASDAQ:MSFT) were down 1.5% during mid-day trading on Thursday . The stock traded as low as $501.29 and last traded at $503.29. Approximately 24,131,927 shares traded hands during mid-day trading, an increase of 10% from the average daily volume of 21,917,664 shares. The stock had previously closed at $511.14.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on MSFT shares. Cantor Fitzgerald set a $639.00 price target on shares of Microsoft in a report on Thursday, October 30th. Wolfe Research set a $675.00 target price on Microsoft and gave the stock an “outperform” rating in a report on Tuesday, October 28th. Wall Street Zen upgraded Microsoft from a “hold” rating to a “buy” rating in a report on Saturday, October 11th. Robert W. Baird initiated coverage on Microsoft in a report on Friday. They set an “outperform” rating and a $600.00 price objective for the company. Finally, Rothschild & Co Redburn lifted their target price on Microsoft from $550.00 to $560.00 and gave the company a “buy” rating in a research report on Wednesday, October 22nd. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $633.59.

Microsoft Price Performance

The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.12. The company has a market capitalization of $3.79 trillion, a P/E ratio of 36.29, a P/E/G ratio of 2.36 and a beta of 1.02. The company has a 50 day moving average price of $514.26 and a 200 day moving average price of $496.63.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, October 29th. The software giant reported $4.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.65 by $0.48. Microsoft had a net margin of 35.71% and a return on equity of 33.47%. The firm had revenue of $77.67 billion during the quarter, compared to the consensus estimate of $75.49 billion. During the same period last year, the business posted $3.30 earnings per share. The business’s revenue for the quarter was up 18.4% compared to the same quarter last year. Microsoft has set its Q2 2026 guidance at EPS. On average, equities analysts predict that Microsoft Corporation will post 13.08 EPS for the current fiscal year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 11th. Investors of record on Thursday, November 20th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.83. The ex-dividend date of this dividend is Thursday, November 20th. Microsoft’s payout ratio is presently 25.89%.

Insider Transactions at Microsoft

In other news, insider Bradford L. Smith sold 38,500 shares of Microsoft stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $518.64, for a total value of $19,967,640.00. Following the transaction, the insider owned 461,597 shares in the company, valued at approximately $239,402,668.08. This trade represents a 7.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Satya Nadella sold 149,205 shares of the company’s stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $504.78, for a total value of $75,315,699.90. Following the sale, the chief executive officer owned 790,852 shares of the company’s stock, valued at approximately $399,206,272.56. This represents a 15.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

Hedge funds and other institutional investors have recently bought and sold shares of the company. AlphaQuest LLC increased its position in shares of Microsoft by 5.9% during the second quarter. AlphaQuest LLC now owns 342 shares of the software giant’s stock worth $170,000 after acquiring an additional 19 shares during the period. BLVD Private Wealth LLC grew its stake in Microsoft by 0.6% in the third quarter. BLVD Private Wealth LLC now owns 3,169 shares of the software giant’s stock worth $1,641,000 after purchasing an additional 19 shares in the last quarter. PMV Capital Advisers LLC raised its position in Microsoft by 5.9% during the 2nd quarter. PMV Capital Advisers LLC now owns 359 shares of the software giant’s stock valued at $178,000 after purchasing an additional 20 shares in the last quarter. Seek First Inc. lifted its holdings in shares of Microsoft by 1.5% in the 2nd quarter. Seek First Inc. now owns 1,358 shares of the software giant’s stock worth $675,000 after buying an additional 20 shares during the period. Finally, Level Financial Advisors lifted its stake in Microsoft by 0.8% in the second quarter. Level Financial Advisors now owns 2,680 shares of the software giant’s stock worth $1,333,000 after acquiring an additional 20 shares during the period. Institutional investors own 71.13% of the company’s stock.

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.