Microsoft (NASDAQ:MSFT) Shares Down 0.1% - Time to Sell?

Microsoft Corporation (NASDAQ:MSFT) saw a slight decline in its share price, dropping by 0.1% during trading on Tuesday. The stock reached a low of $425.60 and was last recorded at $428.65. A total of 5,143,667 shares were exchanged during the session, which is significantly lower by 70% compared to the average trading volume of 17,314,311 shares. The previous close for the stock was at $429.03.

Recent Analyst Ratings

Microsoft's stock has been closely watched by analysts recently. Truist Financial confirmed a "buy" rating for Microsoft, setting a target price of $600.00 in an update from October 28th. In contrast, Oppenheimer downgraded the stock from "outperform" to "market perform" on October 8th. Additionally, Cantor Fitzgerald recently initiated coverage, assigning an "overweight" rating and a target price of $509.00. Wedbush also reiterated an "outperform" rating, setting a price target of $550.00. On the other hand, BMO Capital Markets has adjusted their price target down from $500.00 to $495.00, maintaining an "outperform" rating. The consensus among market analysts shows two holding ratings, twenty-seven buying ratings, and one strong buy. According to MarketBeat, Microsoft currently holds a consensus rating of "Moderate Buy" with an average target price of $512.66.

Microsoft's Performance Overview

The company boasts a market capitalization of $3.32 trillion, and its stock has a price-to-earnings (P/E) ratio of 36.86 and a price/earnings-to-growth (PEG) ratio of 2.28, with a beta of 0.90. Financially, Microsoft maintains a debt-to-equity ratio of 0.15, a current ratio of 1.30, and a quick ratio of 1.29. Its recent stock performance includes a 50-day moving average of $430.07 and a 200-day moving average of $425.55. Microsoft reported its quarterly earnings on October 30th, posting earnings per share (EPS) of $3.30, which exceeded analysts' expectations of $3.10 by $0.20. With a net margin of 35.61% and a return on equity of 34.56%, the company's revenue stood at $65.59 billion, surpassing the consensus estimate of $64.57 billion. In the same quarter from the previous year, the EPS recorded was $2.99, marking a 16.0% increase in revenue year-over-year. Analysts forecast that Microsoft will achieve an EPS of 12.91 in the current fiscal year.

Dividend Announcement

Recently, Microsoft announced a quarterly dividend, scheduled for payment on March 13th. Shareholders who are on record by February 20th will receive a dividend of $0.83. The ex-dividend date for this payment is also set for February 20th. This results in an annualized dividend amount of $3.32, yielding approximately 0.74%. The dividend payout ratio (DPR) is reported at 27.39%.

Insider Transactions

In other developments, Microsoft’s Executive Vice President Judson Althoff sold 25,000 shares on November 22nd at an average price of $417.00, generating a total of $10,425,000.00 from the sale. Post-transaction, he retains ownership of 117,294 shares valued at about $48.91 million, reflecting a 17.57% reduction in his stake. Additionally, Chief Marketing Officer Takeshi Numoto sold 2,500 shares on December 9th at an average price of $447.41, totaling $1,118,525.00. Following this sale, Numoto now holds 49,352 shares worth approximately $22.08 million, resulting in a 4.82% decrease in his position. Over the last three months, insiders have sold a total of 41,200 shares worth $17,383,892. Corporate insiders currently own 0.03% of Microsoft’s stock.

Institutional Activity

A number of institutional investors have recently altered their positions in Microsoft. Christopher J. Hasenberg Inc increased its stake by 169.2% in the second quarter, owning 70 shares valued at $31,000 after acquiring 44 additional shares. Fiduciary Advisors Inc. acquired a new stake in the company valued at $38,000 last fall. IFS Advisors LLC also raised its holdings by 53.8% in the fourth quarter, now owning 100 shares worth $42,000 after adding 35 shares recently. Quarry LP entered the stock with a new position in the second quarter worth about $45,000, and Avondale Wealth Management boosted its stake by 144.4%, now holding 110 shares valued at $46,000 after purchasing an additional 65 shares. Currently, hedge funds and other institutional investors collectively own 71.13% of Microsoft’s stock.

About Microsoft Corporation

Microsoft develops and supports software, services, devices, and solutions globally. Their Productivity and Business Processes segment covers a wide range of offerings, including Microsoft Teams, Microsoft 365, and various office services.

Final Thoughts

Investors may wonder whether now is a good time to buy or sell Microsoft stock. Although the company has shown a minor decline recently, the overall consensus among analysts is that Microsoft remains a favorable investment opportunity. However, some investors may prefer to explore alternatives, as there are suggestions from top analysts for other stocks that could be more promising right now.

Microsoft, Stocks, Trading