Microsoft (MSFT) Hits New 52-Week High on Strong Earnings

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.

TRADEMARK VIOLATION WARNING: This piece was reported by Dispatch Tribunal and is the property of of Dispatch Tribunal. If you are accessing this piece on another site, it was copied illegally and republished in violation of United States and international copyright and trademark law. The original version of this piece can be accessed at https://www.dispatchtribunal.com/2018/02/02/microsoft-msft-hits-new-52-week-high-on-strong-earnings.html.

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.

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply