Microsoft (NASDAQ:MSFT) Reaches New 1-Year High Following Earnings Beat

Microsoft Co. (NASDAQ:MSFT) shares reached a new 52-week high during trading on Friday following a stronger than expected earnings report. The stock traded as high as $140.65 and last traded at $139.42, with a volume of 13502814 shares traded. The stock had previously closed at $136.42.

The software giant reported $1.37 earnings per share for the quarter, topping analysts’ consensus estimates of $1.21 by $0.16. The business had revenue of $33.72 billion for the quarter, compared to analysts’ expectations of $32.80 billion. Microsoft had a return on equity of 40.48% and a net margin of 31.18%. The business’s quarterly revenue was up 12.1% on a year-over-year basis. During the same period in the prior year, the firm earned $1.13 EPS.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 12th. Investors of record on Thursday, August 15th will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 1.35%. The ex-dividend date is Wednesday, August 14th. Microsoft’s dividend payout ratio is currently 38.74%.

A number of equities analysts have issued reports on MSFT shares. Mizuho increased their price target on Facebook from $210.00 to $230.00 and gave the company a “buy” rating in a research note on Thursday, April 25th. CIBC raised their price objective on Intact Financial from C$120.00 to C$134.00 and gave the stock a “neutral” rating in a research note on Friday. Morgan Stanley raised their price objective on Blackstone Group from $54.00 to $56.00 and gave the stock an “overweight” rating in a research note on Friday. Royal Bank of Canada set a $165.00 target price on Allergan and gave the company a “hold” rating in a report on Monday, March 25th. Finally, Wedbush increased their target price on Mastercard from $261.00 to $287.00 and gave the company an “outperform” rating in a report on Thursday, June 13th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, twenty-seven have assigned a buy rating and three have given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average price target of $146.41.

In related news, President Bradford L. Smith sold 192,300 shares of Microsoft stock in a transaction dated Tuesday, April 30th. The stock was sold at an average price of $130.34, for a total transaction of $25,064,382.00. Following the sale, the president now directly owns 754,442 shares of the company’s stock, valued at $98,333,970.28. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Christopher C. Capossela sold 5,000 shares of Microsoft stock in a transaction dated Wednesday, May 15th. The stock was sold at an average price of $126.02, for a total value of $630,100.00. Following the sale, the executive vice president now directly owns 144,934 shares in the company, valued at $18,264,582.68. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 216,247 shares of company stock worth $28,204,754. 1.38% of the stock is currently owned by company insiders.

Hedge funds have recently added to or reduced their stakes in the stock. Highwater Wealth Management LLC acquired a new stake in Microsoft during the fourth quarter valued at approximately $27,000. Quantamental Technologies LLC bought a new position in shares of Microsoft in the fourth quarter valued at approximately $26,000. Mackey Komara & Dankovich LLC bought a new position in shares of Microsoft in the fourth quarter valued at approximately $30,000. Ayalon Holdings Ltd. bought a new position in shares of Microsoft in the fourth quarter valued at approximately $41,000. Finally, Contravisory Investment Management Inc. raised its stake in shares of Microsoft by 113.1% in the fourth quarter. Contravisory Investment Management Inc. now owns 537 shares of the software giant’s stock valued at $55,000 after acquiring an additional 285 shares during the last quarter. 72.05% of the stock is currently owned by institutional investors and hedge funds.

The firm’s 50 day moving average is $133.73. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.93 and a current ratio of 2.97. The stock has a market cap of $1,045.36 billion, a P/E ratio of 28.76, a P/E/G ratio of 2.45 and a beta of 1.21.

About Microsoft (NASDAQ:MSFT)

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises.

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