Key Points
- Microsoft EVP Amy Hood sold 41,674 shares for approximately $20.8 million at an average price of $498.27. The transaction occurred under a pre-arranged Rule 10b5-1 plan, reducing her holdings by 7.24%.
- Microsoft reported strong quarterly results, with EPS of $4.74 and revenue of $90.01 billion, surpassing analyst expectations and marking 17.7% year-over-year revenue growth.
- The company increased its quarterly dividend from $0.91 to $0.98 per share, while analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $564.27.
Microsoft Corporation (NASDAQ:MSFT - Get Free Report) EVP Amy Hood sold 41,674 shares of the business's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Microsoft Stock Down 1.6%
Shares of MSFT stock opened at $497.12 on Wednesday. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The stock has a fifty day moving average price of $460.39 and a 200 day moving average price of $420.90. The stock has a market cap of $3.69 trillion, a P/E ratio of 27.68, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11.
Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.65 EPS. Analysts predict that Microsoft Corporation will post 19.61 earnings per share for the current year.
Microsoft Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a $0.98 dividend. This represents a $3.92 annualized dividend and a yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is currently 20.27%.
Key Headlines Impacting Microsoft
Here are the key news stories impacting Microsoft this week:
- Positive Sentiment: Dividend increased 8%: Microsoft’s board raised the quarterly dividend by $0.07 to $0.98 per share, signaling confidence in cash generation and improving shareholder returns. Microsoft announces quarterly dividend increase
- Positive Sentiment: Analyst support remains strong: Citizens JMP reaffirmed a “Market Outperform” rating and a $550 price target, implying additional upside from the reported $497.12 reference price. Other recent commentary highlights Azure growth, Copilot adoption and Microsoft’s enterprise software strength.
- Positive Sentiment: Greater Azure transparency could help the stock: Microsoft plans to report Azure revenue, rather than only its growth rate, in quarterly results. The move could make the cloud business easier to value and allow investors to better assess whether AI infrastructure spending is translating into revenue. Microsoft Azure revenue reporting
- Positive Sentiment: Upcoming product catalyst: Microsoft scheduled a Windows and Surface event for October 7, where investors expect updates on next-generation hardware and on-device AI capabilities. Microsoft Windows and Surface event
- Neutral Sentiment: AI safety positioning: Microsoft’s draft “Humanist AI” code of conduct emphasizes human control, outside testing and limits on model behavior. The framework may improve trust and reduce regulatory risk, although a slower development approach could raise questions about competitiveness and commercialization.
- Negative Sentiment: Executive selling adds a modest overhang: EVP Amy Hood sold 41,674 shares worth approximately $20.8 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance, it is not necessarily a signal about Microsoft’s outlook, but it adds to recent insider-selling activity.
- Negative Sentiment: AI execution and security concerns remain: Investors continue to weigh Microsoft’s heavy data-center investment against the time required to generate returns, while coverage of a recent large security patch highlights ongoing cybersecurity risks.
Analyst Ratings Changes
Several research firms have recently weighed in on MSFT. Citigroup reiterated a "market outperform" rating on shares of Microsoft in a research note on Monday, August 31st. Evercore set a $528.00 price target on Microsoft in a research note on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Microsoft in a research note on Monday, July 20th. CLSA reissued an "outperform" rating on shares of Microsoft in a report on Thursday, July 30th. Finally, Cantor Fitzgerald boosted their target price on shares of Microsoft from $502.00 to $522.00 and gave the company an "overweight" rating in a research note on Monday, July 27th. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Microsoft has an average rating of "Moderate Buy" and an average price target of $564.27.
View Our Latest Research Report on Microsoft
Hedge Funds Weigh In On Microsoft
Institutional investors have recently bought and sold shares of the business. Anchor Investment Management LLC grew its holdings in shares of Microsoft by 3.7% during the second quarter. Anchor Investment Management LLC now owns 105,520 shares of the software giant's stock worth $39,361,000 after purchasing an additional 3,733 shares during the last quarter. Reynders McVeigh Capital Management LLC raised its holdings in shares of Microsoft by 9.9% in the second quarter. Reynders McVeigh Capital Management LLC now owns 219,809 shares of the software giant's stock valued at $81,993,000 after buying an additional 19,760 shares during the last quarter. Revere Asset Management Inc acquired a new position in Microsoft during the 2nd quarter worth about $298,000. Bullseye Investment Management LLC bought a new stake in Microsoft during the 2nd quarter worth about $3,820,000. Finally, Marathon Wealth Advisors LLC grew its holdings in Microsoft by 4.2% during the 2nd quarter. Marathon Wealth Advisors LLC now owns 26,552 shares of the software giant's stock worth $9,904,000 after acquiring an additional 1,081 shares during the last quarter. Institutional investors own 71.13% of the company's stock.
Microsoft Company Profile
(
Get Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Further Reading
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