Microsoft (NASDAQ:MSFT) Downgraded by Phillip Securities to Hold

Phillip Securities cut shares of Microsoft (NASDAQ:MSFT) from a moderate buy rating to a hold rating in a report released on Monday,Zacks reports.

Several other analysts also recently commented on the company. Argus reduced their target price on Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research note on Friday, July 10th. Cantor Fitzgerald upped their price target on Microsoft from $522.00 to $608.00 and gave the stock an “overweight” rating in a research note on Monday, September 21st. Scotiabank upped their price target on Microsoft from $510.00 to $615.00 and gave the stock an “outperform” rating in a research note on Monday, October 5th. Bank of America increased their price target on Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. Finally, Oppenheimer increased their price target on Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a report on Tuesday, September 22nd. Forty-one investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $581.80.

Microsoft Stock Performance

NASDAQ:MSFT opened at $543.45 on Monday. Microsoft has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a 50 day simple moving average of $503.23 and a two-hundred day simple moving average of $437.50. The company has a market capitalization of $4.04 trillion, a PE ratio of 30.26, a P/E/G ratio of 1.74 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the previous year, the company posted $3.65 earnings per share. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. Research analysts anticipate that Microsoft will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is 20.27%.

Insiders Place Their Bets

In related news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by company insiders.

Institutional Trading of Microsoft

Hedge funds and other institutional investors have recently modified their holdings of the business. Montgomery Financial Services LLC bought a new position in shares of Microsoft in the 2nd quarter valued at about $26,000. Frankly Finances LLC bought a new position in Microsoft in the second quarter valued at approximately $35,000. Bard Associates Inc. acquired a new position in shares of Microsoft during the 2nd quarter worth approximately $37,000. PMV Capital Advisers LLC bought a new stake in shares of Microsoft during the 2nd quarter worth approximately $38,000. Finally, Fiduciary Advisors Inc. raised its position in Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after acquiring an additional 34 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Maia 300 strengthens Microsoft’s AI infrastructure strategy. Microsoft unveiled its third-generation Maia 300 AI chip and plans multi-gigawatt deployments beginning in 2027. The company says the chip can deliver approximately 40% more AI-generated tokens per megawatt or dollar than leading GPU-based systems, potentially lowering computing costs and reducing reliance on Nvidia and AMD. Microsoft Reveals Next-Gen Maia 300 Custom AI Chip For Widespread Deployment
• Positive Sentiment: AI and cloud demand remain major valuation catalysts. Reports highlight accelerating Azure demand, a record commercial backlog and more than $130 billion in new data-center leases, supporting expectations for continued growth in cloud and AI services. Microsoft also has several generations of proprietary AI chips, giving investors a potential long-term margin and supply-chain advantage. Microsoft Reports $130 Billion in Data Center Leases
• Positive Sentiment: Analyst optimism provides additional support. Barclays raised its Microsoft price target to $600 from $512 and expects greater differentiation in software as the next quarter progresses. The company is scheduled to report fiscal first-quarter results on October 28, with analysts looking for roughly $4.72 in earnings per share and $90.4 billion in revenue. Microsoft price target raised to $600 from $512 at Barclays

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.