StockNews.com Upgrades Microsoft (NASDAQ:MSFT) to "Buy"

Microsoft (NASDAQ:MSFT) received a significant upgrade from StockNews.com, moving from a "hold" rating to a "buy" rating in a report released on Tuesday.

Analyst Price Targets and Ratings

Alongside the upgrade from StockNews.com, various other research firms have also released updated ratings on Microsoft. For instance, Wedbush reissued an "outperform" rating and set a price target of $550 per share for Microsoft as of November 19th. Meanwhile, JPMorgan Chase & Co. adjusted their target price downward to $465 from a previous $470, maintaining an "overweight" rating in a report published on October 31st. Truist Financial also reiterated a "buy" rating with a price objective of $600 on October 28th. Additionally, Sanford C. Bernstein reduced its target to $500 from $501 on October 25th but still holds an "outperform" rating. Lastly, KeyCorp increased its target price to $505, maintaining an "overweight" rating on October 18th. Overall, the stock sees strong backing, with two analysts recommending a hold and twenty-eight endorsing a buy rating, leading to a consensus rating of "Moderate Buy" and an average price target of approximately $503.03 according to MarketBeat.com.

Recent Trading Activity

On the trading floor, Microsoft shares saw a slight uptick of 0.1%, closing at $431.20 on Tuesday after an exchange of 18,277,088 shares, which is under its average volume of 20,546,393. The company boasts a market capitalization of $3.21 trillion, with a price-to-earnings ratio of 35.58 and a price-to-earnings-growth ratio of 2.29. It is essential to note that Microsoft has seen a fifty-two week low of $362.90 and a high of $468.35. The 50-day moving average stands at $420.83, while the 200-day moving average is $426.70.

Financial Performance

In its most recent quarterly earnings report released on October 30th, Microsoft posted an earnings per share (EPS) of $3.30, surpassing the analyst consensus of $3.10 by $0.20. The company achieved a return on equity of 34.56%, with a net margin of 35.61%. Microsoft reported revenues of $65.59 billion, beating expectations set at $64.57 billion, marking a 16.0% increase from the same quarter last year.

Stock Buyback Program

Microsoft's board authorized a substantial stock buyback program amounting to $60 billion on September 16th. This program allows Microsoft to repurchase up to 1.9% of its outstanding shares through open market transactions, reflecting management's belief in the stock's undervaluation.

Insider Trading Activity

Recently, CEO Satya Nadella sold 78,353 shares of Microsoft on September 4th, for an average price of $408.63, totaling approximately $32 million. Following this sale, he retains 864,327 shares valued at around $353 million. Additionally, insider Bradford L. Smith sold 40,000 shares on September 9th at an average price of $402.59, which amounted to about $16 million. Collectively, these transactions represent a decrease in their respective shares owned by 8.31% and 6.84%. Over the past three months, corporate insiders have sold 212,931 shares valued at around $87 million, while corporate insiders hold 0.03% of the stock.

Institutional Investor Activity

Institutional investors have made recent adjustments to their stakes in Microsoft. Notably, Christopher J. Hasenberg Inc. increased its holdings by 169.2% in Q2, now owning 70 shares valued at $31,000. Other investors have also been active, with Quarry LP and MidAtlantic Capital Management making new purchases valued at approximately $45,000 and $62,000, respectively. Currently, institutional investors control approximately 71.13% of Microsoft stock.

About Microsoft

Microsoft Corporation is a leading technology company that focuses on developing and supporting software, services, devices, and solutions globally, with a wide range of offerings that include Microsoft Teams, Office 365, and various other productivity tools.

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