Microsoft Sees Unusually High Options Volume (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFT) was the recipient of some unusual options trading on Friday. Investors acquired 1,189,283 call options on the stock. This represents an increase of approximately 53% compared to the average daily volume of 776,749 call options.

Insider Activity

In other Microsoft news, Director John W. Stanton purchased 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The stock was purchased at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the purchase, the director directly owned 83,905 shares in the company, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the transaction, the executive vice president owned 137,933 shares of the company’s stock, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. IRON Financial LLC raised its position in Microsoft by 23.2% in the third quarter. IRON Financial LLC now owns 6,510 shares of the software giant’s stock valued at $3,372,000 after purchasing an additional 1,225 shares during the period. PMG Family Office LLC purchased a new stake in Microsoft in the third quarter valued at approximately $828,000. Trifecta Capital Advisors LLC raised its position in Microsoft by 2.3% in the third quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant’s stock valued at $36,347,000 after purchasing an additional 1,572 shares during the period. TD Waterhouse Canada Inc. raised its position in Microsoft by 1.0% in the third quarter. TD Waterhouse Canada Inc. now owns 949,901 shares of the software giant’s stock valued at $493,860,000 after purchasing an additional 9,700 shares during the period. Finally, Werba Rubin Papier Wealth Management raised its position in Microsoft by 15.7% in the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after purchasing an additional 1,698 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Trading Up 3.1%

Shares of Microsoft stock opened at $421.92 on Friday. The stock has a market cap of $3.13 trillion, a P/E ratio of 25.11, a P/E/G ratio of 1.47 and a beta of 1.10. The stock’s 50 day simple moving average is $398.18 and its 200-day simple moving average is $441.39. Microsoft has a 1-year low of $356.28 and a 1-year high of $555.45. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.

Microsoft (NASDAQ:MSFT) last issued 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 business had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.46 EPS. Analysts predict that Microsoft will post 16.76 EPS for the current fiscal year.

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft’s payout ratio is currently 21.67%.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on MSFT shares. Oppenheimer restated an “outperform” rating and issued a $515.00 price target (down from $630.00) on shares of Microsoft in a research note on Monday, April 27th. Mizuho cut their price target on Microsoft from $620.00 to $515.00 and set an “outperform” rating for the company in a research note on Tuesday, April 14th. Tigress Financial lifted their price target on Microsoft from $595.00 to $680.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Evercore cut their price target on Microsoft from $580.00 to $510.00 and set an “outperform” rating for the company in a research note on Thursday, April 30th. Finally, Bank of America assumed coverage on Microsoft in a research note on Tuesday, March 24th. They issued a “buy” rating and a $500.00 price target for the company. Thirty-nine equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and an average target price of $560.88.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bill Ackman revealed a new multi-billion-dollar stake in Microsoft (MSFT), saying the company looks attractively valued and highlighting Azure, Microsoft 365, and AI as key growth drivers. Reuters: Ackman’s Pershing Square takes stake in Microsoft, citing ‘compelling’ valuation
• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft’s AI infrastructure, Azure growth, and OpenAI exposure could support further upside, with some seeing the stock’s weaker recent performance as a buying opportunity. TipRanks: Microsoft Buy Rating Reiterated as AI and Cloud Momentum Builds
• Neutral Sentiment: Microsoft also announced a board addition, appointing former EY chief Carmine Di Sibio to its board of directors, which is a governance update but not an immediate operating catalyst. PR Newswire: Microsoft announces appointment of Carmine Di Sibio to board of directors
• Negative Sentiment: The UK opened an antitrust probe into Microsoft’s business software and cloud practices, creating a potential regulatory overhang for the stock. Reuters: UK opens antitrust probe into Microsoft’s business software
• Negative Sentiment: LinkedIn, a Microsoft-owned unit, announced 5% workforce cuts, reinforcing that the company is still trimming costs even as it ramps AI spending. Reuters: LinkedIn to lay off 5% of workforce amid tech industry cuts

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).