Microsoft Co. (NASDAQ:MSFT) shares hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $95.75 and last traded at $95.78, with a volume of 25857644 shares changing hands. The stock had previously closed at $95.01.
The software giant reported $0.96 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.87 by $0.09. The business had revenue of $28.92 billion during the quarter, compared to analysts’ expectations of $28.42 billion. Microsoft had a net margin of 24.56% and a return on equity of 35.23%. The firm’s revenue was up 11.9% on a year-over-year basis. During the same quarter last year, the company earned $0.83 earnings per share.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 8th. Shareholders of record on Thursday, February 15th will be paid a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.78%. The ex-dividend date of this dividend is Wednesday, February 14th. Microsoft’s dividend payout ratio is 114.29%.
A number of brokerages have commented on MSFT. Sanford C. Bernstein restated an “outperform” rating and set a $118.00 price target (up previously from $109.00) on shares of Microsoft in a research note on Thursday. UBS Group set a $110.00 price target on shares of Microsoft and gave the stock a “buy” rating in a research note on Thursday. Macquarie set a $95.00 price target on shares of Microsoft and gave the stock a “neutral” rating in a research note on Thursday. Jefferies Group set a $62.00 price target on shares of Microsoft and gave the stock a “sell” rating in a research note on Thursday. Finally, Morgan Stanley set a $110.00 price target on shares of Microsoft and gave the stock a “buy” rating in a research note on Thursday. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and thirty have assigned a buy rating to the company. The company has an average rating of “Buy” and a consensus target price of $98.43.
In related news, EVP Christopher C. Capossela sold 4,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 14th. The shares were sold at an average price of $83.48, for a total value of $333,920.00. Following the completion of the sale, the executive vice president now owns 185,278 shares of the company’s stock, valued at $15,467,007.44. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Frank H. Brod sold 18,000 shares of the firm’s stock in a transaction that occurred on Monday, December 4th. The shares were sold at an average price of $83.15, for a total transaction of $1,496,700.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 30,000 shares of company stock valued at $2,498,220. Company insiders own 1.49% of the company’s stock.
Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in Microsoft by 4.6% during the 2nd quarter. Vanguard Group Inc. now owns 564,052,011 shares of the software giant’s stock worth $38,880,105,000 after acquiring an additional 25,053,413 shares during the period. Capital Research Global Investors grew its holdings in Microsoft by 212.3% during the 2nd quarter. Capital Research Global Investors now owns 69,663,044 shares of the software giant’s stock worth $4,801,874,000 after acquiring an additional 47,353,245 shares during the period. Janus Henderson Group PLC grew its holdings in Microsoft by 609.4% during the 2nd quarter. Janus Henderson Group PLC now owns 49,174,883 shares of the software giant’s stock worth $3,389,625,000 after acquiring an additional 42,243,011 shares during the period. Legal & General Group Plc grew its holdings in Microsoft by 2.1% during the 3rd quarter. Legal & General Group Plc now owns 38,463,571 shares of the software giant’s stock worth $2,864,881,000 after acquiring an additional 774,549 shares during the period. Finally, Schwab Charles Investment Management Inc. grew its holdings in Microsoft by 3.8% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 31,523,813 shares of the software giant’s stock worth $2,696,444,000 after acquiring an additional 1,148,178 shares during the period. 73.26% of the stock is owned by institutional investors and hedge funds.
The company has a quick ratio of 3.06, a current ratio of 3.12 and a debt-to-equity ratio of 0.91. The company has a market capitalization of $727,180.00, a price-to-earnings ratio of 64.12, a P/E/G ratio of 2.18 and a beta of 0.99.
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Microsoft Company Profile
Microsoft Corporation is a technology company. The Company develops, licenses, and supports a range of software products, services and devices. The Company’s segments include Productivity and Business Processes, Intelligent Cloud and More Personal Computing. The Company’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers.
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