Analysts Set Microsoft Co. (NASDAQ:MSFT) Target Price at $494.80

Microsoft Co. (NASDAQ:MSFT) has been given an average rating of “Moderate Buy” by the thirty ratings firms that are currently covering the company, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $493.89.

A number of brokerages recently commented on MSFT. Scotiabank initiated coverage on Microsoft in a research report on Thursday, March 20th. They issued a “sector outperform” rating and a $470.00 target price for the company. Tigress Financial upped their target price on Microsoft from $550.00 to $595.00 and gave the stock a “buy” rating in a research report on Thursday, March 20th. Wedbush reduced their price target on shares of Microsoft from $550.00 to $475.00 and set an “outperform” rating for the company in a research report on Thursday, April 10th. DA Davidson upgraded shares of Microsoft from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $425.00 to $450.00 in a report on Thursday, March 13th. Finally, Royal Bank of Canada reaffirmed an “outperform” rating and issued a $500.00 price objective on shares of Microsoft in a research note on Thursday, January 30th.

Microsoft Price Performance

Shares of MSFT opened at $391.85 on Thursday. The firm has a market cap of $2.91 trillion, a PE ratio of 31.55, a price-to-earnings-growth ratio of 2.21 and a beta of 1.00. Microsoft has a 52-week low of $344.79 and a 52-week high of $468.35. The business’s 50 day moving average price is $384.93 and its two-hundred day moving average price is $411.39. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.34 and a current ratio of 1.35.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, January 29th. The software giant reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate 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 last year, the firm earned $2.93 EPS. On average, equities analysts anticipate that Microsoft will post 13.08 EPS for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 15th will be given a dividend of $0.83 per share. This represents a $3.32 annualized dividend and a dividend yield of 0.85%. The ex-dividend date is Thursday, May 15th. Microsoft’s dividend payout ratio is presently 26.73%.

Institutional Trading of Microsoft

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Ball & Co Wealth Management Inc. bought a new position in Microsoft in the fourth quarter valued at $31,000. Newton One Investments LLC increased its stake in shares of Microsoft by 66.7% during the first quarter. Newton One Investments LLC now owns 75 shares of the software giant’s stock valued at $28,000 after buying an additional 30 shares during the period. Fiduciary Advisors Inc. bought a new position in Microsoft in the 4th quarter worth $38,000. IFS Advisors LLC lifted its holdings in 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 buying an additional 35 shares during the period. Finally, LSV Asset Management purchased a new position in shares of Microsoft during the 4th quarter worth approximately $44,000. Institutional investors own 71.13% of the company’s stock.

About Microsoft

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.