Microsoft Corp.’s “Neutral” Rating Reaffirmed at Zacks (MSFT)
Microsoft Corp. (NASDAQ:MSFT)‘s stock had its “neutral” rating restated by Zacks in a note issued to investors on Friday, Analyst Ratings News reports. They currently have a $38.00 price objective on the stock. Zacks‘ price objective suggests a potential upside of 5.39% from the company’s current price.
Zacks‘ analyst wrote, “Microsoft is one of the largest software companies in the world. Its operating systems are installed on the majority of computers anywhere in the world. Fiscal second quarter 2014 earnings exceeded the Zacks Consensus Estimate. The reorganization of the business and “devices and services” model are encouraging, but execution risks are considerable. The departure of CEO Ballmer at this juncture may be a good thing, but does not alleviate near-term uncertainties. Additionally, competition remains stiff and Microsoft’s dominant position in the PC market continues to be challenged by new-age devices. However, considering the fact that the promising new products, enterprise refresh cycle and cost reduction initiatives will continue to generate sizeable cash flows, we are reiterating our Neutral recommendation on Microsoft shares.”
A number of other firms have also recently commented on MSFT. Analysts at Credit Suisse reiterated an “outperform” rating on shares of Microsoft Corp. in a research note to investors on Friday. They now have a $42.50 price target on the stock, up previously from $40.00. Separately, analysts at Jefferson Research upgraded shares of Microsoft Corp. from a “hold” rating to a “buy” rating in a research note to investors on Friday. Finally, analysts at Oppenheimer raised their price target on shares of Microsoft Corp. from $37.00 to $38.00 in a research note to investors on Friday. Five analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and fourteen have given a buy rating to the stock. Microsoft Corp. currently has a consensus rating of “Hold” and a consensus price target of $35.83.
Shares of Microsoft Corp. (NASDAQ:MSFT) traded up 2.84% during mid-day trading on Friday, hitting $37.08. 45,610,128 shares of the company’s stock traded hands. Microsoft Corp. has a 1-year low of $27.10 and a 1-year high of $38.98. The stock has a 50-day moving average of $36.78 and a 200-day moving average of $34.79. The company has a market cap of $309.5 billion and a price-to-earnings ratio of 13.50. Microsoft Corp. also was the recipient of unusually large options trading on Thursday. Stock traders bought 135,759 call options on the stock. This is an increase of 128% compared to the average daily volume of 59,531 call options.
Microsoft Corp. (NASDAQ:MSFT) last released its earnings data on Wednesday, January 22nd. The company reported $0.76 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.68 by $0.08. The company had revenue of $24.50 billion for the quarter, compared to the consensus estimate of $23.67 billion. During the same quarter in the prior year, the company posted $0.76 earnings per share. The company’s quarterly revenue was up 14.3% on a year-over-year basis. On average, analysts predict that Microsoft Corp. will post $2.66 earnings per share for the current fiscal year.
In other Microsoft Corp. news, EVP Anthony John Bates sold 14,000 shares of the company’s stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $36.29, for a total transaction of $508,060.00. Following the completion of the sale, the executive vice president now directly owns 601,777 shares in the company, valued at approximately $21,838,487. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services.
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