Microsoft (NASDAQ:MSFT) Stock Price Down 1.2% – Should You Sell?

Microsoft Co. (NASDAQ:MSFT) traded down 1.2% on Tuesday . The company traded as low as $397.69 and last traded at $399.23. 8,128,913 shares were traded during mid-day trading, a decline of 63% from the average session volume of 22,204,635 shares. The stock had previously closed at $404.00.

Wall Street Analyst Weigh In

MSFT has been the topic of several research analyst reports. DA Davidson reissued a “neutral” rating and issued a $425.00 price objective on shares of Microsoft in a report on Thursday, January 30th. UBS Group cut their price objective on shares of Microsoft from $525.00 to $510.00 and set a “buy” rating for the company in a report on Thursday, January 30th. TD Cowen reduced their price target on Microsoft from $495.00 to $475.00 and set a “buy” rating on the stock in a report on Thursday, October 31st. Morgan Stanley reduced their price target on shares of Microsoft from $540.00 to $530.00 and set an “overweight” rating on the stock in a research report on Thursday, January 30th. Finally, Royal Bank of Canada reaffirmed an “outperform” rating and issued a $500.00 target price on shares of Microsoft in a research report on Thursday, January 30th. Three equities research analysts have rated the stock with a hold rating and twenty-seven have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $510.96.

Microsoft Price Performance

The company has a quick ratio of 1.34, a current ratio of 1.35 and a debt-to-equity ratio of 0.13. The stock has a fifty day moving average of $424.25 and a 200-day moving average of $423.08. The stock has a market capitalization of $2.97 trillion, a price-to-earnings ratio of 32.21, a P/E/G ratio of 2.21 and a beta of 0.90.

Microsoft (NASDAQ:MSFT) last posted its earnings results on Wednesday, January 29th. The software giant reported $3.23 EPS for the quarter, beating analysts’ consensus estimates of $3.15 by $0.08. Microsoft had a net margin of 35.43% and a return on equity of 33.36%. During the same period in the prior year, the business posted $2.93 EPS. On average, equities research analysts predict that Microsoft Co. will post 13.08 EPS for the current fiscal year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Investors of record on Thursday, February 20th will be given a $0.83 dividend. The ex-dividend date is Thursday, February 20th. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.83%. Microsoft’s dividend payout ratio (DPR) is presently 26.73%.

Insiders Place Their Bets

In related news, CMO Takeshi Numoto sold 2,500 shares of the firm’s stock in a transaction dated Monday, December 9th. The stock was sold at an average price of $447.41, for a total transaction of $1,118,525.00. Following the transaction, the chief marketing officer now owns 49,352 shares of the company’s stock, valued at $22,080,578.32. This trade represents a 4.82 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders have sold a total of 8,000 shares of company stock valued at $3,493,820 over the last quarter. Company insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Ball & Co Wealth Management Inc. acquired a new stake in shares of Microsoft in the 4th quarter worth $31,000. Fiduciary Advisors Inc. acquired a new position in Microsoft during the fourth quarter worth $38,000. Christopher J. Hasenberg Inc grew its holdings in Microsoft by 35.7% during the third quarter. Christopher J. Hasenberg Inc now owns 95 shares of the software giant’s stock worth $39,000 after acquiring an additional 25 shares during the period. IFS Advisors LLC increased its holdings in shares of Microsoft by 53.8% in the 4th quarter. IFS Advisors LLC now owns 100 shares of the software giant’s stock valued at $42,000 after purchasing an additional 35 shares in the last quarter. Finally, LSV Asset Management acquired a new position in Microsoft during the fourth quarter worth about $44,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Company Profile

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.