Microsoft (NASDAQ:MSFT) Stock Price Down 0.7% Following Insider Selling

Microsoft Co. (NASDAQ:MSFT)’s stock price was down 0.7% on Wednesday following insider selling activity. The stock traded as low as $418.23 and last traded at $420.28. Approximately 3,470,296 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 20,358,561 shares. The stock had previously closed at $423.03.

Specifically, EVP Christopher David Young sold 7,200 shares of the business’s stock in a transaction on Tuesday, November 12th. The stock was sold at an average price of $423.66, for a total transaction of $3,050,352.00. Following the completion of the transaction, the executive vice president now owns 103,366 shares in the company, valued at $43,792,039.56. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analysts Set New Price Targets

Several research analysts have recently commented on MSFT shares. Morgan Stanley boosted their price target on Microsoft from $506.00 to $548.00 and gave the stock an “overweight” rating in a research report on Thursday, October 31st. Truist Financial reaffirmed a “buy” rating and set a $600.00 target price on shares of Microsoft in a report on Monday, October 28th. Sanford C. Bernstein lowered their price target on Microsoft from $501.00 to $500.00 and set an “outperform” rating on the stock in a research report on Friday, October 25th. Oppenheimer downgraded Microsoft from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 8th. Finally, The Goldman Sachs Group decreased their target price on Microsoft from $515.00 to $500.00 and set a “buy” rating on the stock in a research report on Thursday, October 10th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and twenty-six have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $503.03.

Microsoft Price Performance

The company has a market capitalization of $3.12 trillion, a PE ratio of 34.68, a P/E/G ratio of 2.21 and a beta of 0.91. The company has a current ratio of 1.30, a quick ratio of 1.29 and a debt-to-equity ratio of 0.15. The stock has a fifty day simple moving average of $421.38 and a 200-day simple moving average of $425.44.

Microsoft (NASDAQ:MSFT) last posted its earnings results on Wednesday, October 30th. The software giant reported $3.30 earnings per share for the quarter, beating the consensus estimate of $3.10 by $0.20. Microsoft had a return on equity of 34.56% and a net margin of 35.61%. The business had revenue of $65.59 billion during the quarter, compared to the consensus estimate of $64.57 billion. During the same period in the previous year, the business earned $2.99 EPS. The business’s quarterly revenue was up 16.0% on a year-over-year basis. Equities analysts anticipate that Microsoft Co. will post 12.94 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 12th. Stockholders of record on Thursday, November 21st will be issued a $0.83 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.75. This represents a $3.32 annualized dividend and a dividend yield of 0.79%. The ex-dividend date of this dividend is Thursday, November 21st. Microsoft’s payout ratio is presently 24.75%.

Microsoft declared that its Board of Directors has initiated a stock buyback plan on Monday, September 16th that authorizes the company to repurchase $60.00 billion in outstanding shares. This repurchase authorization authorizes the software giant to buy up to 1.9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Microsoft

Several institutional investors have recently added to or reduced their stakes in MSFT. Christopher J. Hasenberg Inc increased its position in Microsoft by 169.2% in the 2nd quarter. Christopher J. Hasenberg Inc now owns 70 shares of the software giant’s stock valued at $31,000 after acquiring an additional 44 shares during the period. Quarry LP acquired a new position in Microsoft in the 2nd quarter valued at about $45,000. MidAtlantic Capital Management Inc. acquired a new position in Microsoft in the 3rd quarter valued at about $62,000. Innealta Capital LLC acquired a new position in Microsoft in the 2nd quarter valued at about $75,000. Finally, Bellevue Group AG increased its position in Microsoft by 47.5% during the 1st quarter. Bellevue Group AG now owns 180 shares of the software giant’s stock worth $76,000 after purchasing an additional 58 shares during the period. Institutional investors and hedge funds own 71.13% of the company’s stock.

About Microsoft

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.