Microsoft Stock Rating Reaffirmed by Zacks (MSFT)
Microsoft (NASDAQ:MSFT)‘s stock had its “neutral” rating restated by Zacks in a note issued to investors on Thursday. They currently have a $43.00 price target on the stock. Zacks‘s price objective points to a potential upside of 5.96% 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 third quarter 2014 earnings exceeded the Zacks Consensus Estimate. The reorganization of the business and “cloud-first mobile-first” focus are encouraging, but execution risks are considerable. 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 enterprise refresh cycle, new subscription model, Azure and promising new products will continue to generate sizeable cash flows, we are reiterating our Neutral recommendation on Microsoft shares.”
Microsoft (NASDAQ:MSFT) traded down 0.69% during mid-day trading on Thursday, hitting $40.58. 29,823,030 shares of the company’s stock traded hands. Microsoft has a 52 week low of $30.84 and a 52 week high of $41.66. The stock’s 50-day moving average is $40.20 and its 200-day moving average is $38.51. The company has a market cap of $335.2 billion and a P/E ratio of 15.31. Microsoft also was the recipient of a large decrease in short interest in May. As of May 30th, there was short interest totalling 77,254,371 shares, a decrease of 2.8% from the May 15th total of 79,466,801 shares. Currently, 1.0% of the shares of the stock are short sold. Based on an average daily trading volume, of 24,274,737 shares, the days-to-cover ratio is currently 3.2 days.
Microsoft (NASDAQ:MSFT) last released its earnings data on Thursday, April 24th. The company reported $0.68 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.63 by $0.05. The company had revenue of $20.40 billion for the quarter, compared to the consensus estimate of $20.38 billion. During the same quarter in the prior year, the company posted $0.72 earnings per share. The company’s quarterly revenue was down .4% on a year-over-year basis. Analysts expect that Microsoft will post $2.70 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, September 11th. Shareholders of record on Thursday, August 21st will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 2.76%. The ex-dividend date is Tuesday, August 19th.
Other equities research analysts have also recently issued reports about the stock. Analysts at Citigroup Inc. reiterated a “neutral” rating on shares of Microsoft in a research note on Thursday. They now have a $41.00 price target on the stock, up previously from $35.00. Separately, analysts at FBR Capital Markets upgraded shares of Microsoft from a “market perform” rating to an “outperform” rating in a research note on Thursday, June 5th. They now have a $49.00 price target on the stock, up previously from $43.00. Three investment analysts have rated the stock with a sell rating, fifteen have given a hold rating and eleven have issued a buy rating to the company’s stock. Microsoft has an average rating of “Hold” and an average price target of $38.83.
Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services.
To view Zacks’ full report, visit Zacks’ official website.
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