Microsoft (NASDAQ:MSFT) Stock Price Down 2.5% After Analyst Downgrade

Microsoft Co. (NASDAQ:MSFT)’s stock price dropped 2.5% during mid-day trading on Thursday after Wedbush lowered their price target on the stock from $550.00 to $475.00. Wedbush currently has an outperform rating on the stock. Microsoft traded as low as $377.61 and last traded at $380.74. Approximately 7,351,356 shares traded hands during trading, a decline of 65% from the average daily volume of 21,082,069 shares. The stock had previously closed at $390.49.

A number of other brokerages have also commented on MSFT. Guggenheim reiterated a “neutral” rating on shares of Microsoft in a research note on Friday, January 24th. Morgan Stanley decreased their target price on shares of Microsoft from $540.00 to $530.00 and set an “overweight” rating for the company in a research note on Thursday, January 30th. Westpark Capital began coverage on Microsoft in a report on Tuesday, April 1st. They issued a “hold” rating for the company. StockNews.com downgraded Microsoft from a “buy” rating to a “hold” rating in a report on Friday, February 28th. Finally, Mizuho reduced their price target on shares of Microsoft from $510.00 to $500.00 and set an “outperform” rating for the company in a research report on Thursday, January 30th. Four investment analysts have rated the stock with a hold rating and twenty-eight have given a buy rating to the company. According to data from MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and an average price target of $505.41.

Institutional Trading of Microsoft

Hedge funds have recently bought and sold shares of the stock. Ball & Co Wealth Management Inc. acquired a new position in Microsoft during the 4th quarter valued at about $31,000. Fiduciary Advisors Inc. purchased a new stake in shares of Microsoft in the 4th quarter valued at $38,000. IFS Advisors LLC increased its stake in shares of Microsoft by 53.8% in the fourth quarter. IFS Advisors LLC now owns 100 shares of the software giant’s stock worth $42,000 after acquiring an additional 35 shares during the period. LSV Asset Management purchased a new position in shares of Microsoft during the 4th quarter valued at about $44,000. Finally, Avondale Wealth Management lifted its holdings in Microsoft by 144.4% in the fourth quarter. Avondale Wealth Management now owns 110 shares of the software giant’s stock valued at $46,000 after acquiring an additional 65 shares during the period. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.35 and a quick ratio of 1.34. The stock has a market capitalization of $2.82 trillion, a PE ratio of 30.49, a P/E/G ratio of 2.21 and a beta of 1.00. The stock’s fifty day moving average is $392.96 and its 200-day moving average is $415.17.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings data on Wednesday, January 29th. The software giant reported $3.23 earnings per share for the quarter, topping 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 quarter in the previous year, the firm earned $2.93 earnings per share. As a group, equities analysts predict that Microsoft Co. will post 13.08 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 15th will be given a $0.83 dividend. The ex-dividend date of this dividend is Thursday, May 15th. This represents a $3.32 annualized dividend and a yield of 0.87%. Microsoft’s dividend payout ratio is presently 26.73%.

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.