DA Davidson Has Optimistic View of Microsoft FY2025 Earnings

Microsoft Co. (NASDAQ:MSFT) – DA Davidson raised their FY2025 earnings per share estimates for shares of Microsoft in a note issued to investors on Thursday, May 1st. DA Davidson analyst G. Luria now forecasts that the software giant will earn $13.45 per share for the year, up from their previous estimate of $12.87. DA Davidson has a “Buy” rating and a $500.00 price target on the stock. The consensus estimate for Microsoft’s current full-year earnings is $13.08 per share. DA Davidson also issued estimates for Microsoft’s FY2026 earnings at $14.26 EPS.

MSFT has been the topic of several other research reports. Tigress Financial raised their price target on shares of Microsoft from $550.00 to $595.00 and gave the stock a “buy” rating in a research note on Thursday, March 20th. Stifel Nicolaus lifted their price target on shares of Microsoft from $475.00 to $500.00 and gave the company a “buy” rating in a research note on Thursday, May 1st. Royal Bank of Canada increased their price objective on Microsoft from $500.00 to $525.00 and gave the stock an “outperform” rating in a research note on Thursday, May 1st. TD Securities lifted their target price on Microsoft from $475.00 to $490.00 and gave the company a “buy” rating in a research report on Thursday, May 1st. Finally, Bank of America dropped their price target on Microsoft from $510.00 to $480.00 and set a “buy” rating on the stock in a research report on Tuesday, April 15th. Five investment analysts have rated the stock with a hold rating and thirty-one have given a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $507.77.

Microsoft Price Performance

MSFT opened at $436.17 on Monday. The company has a quick ratio of 1.34, a current ratio of 1.35 and a debt-to-equity ratio of 0.13. The business has a fifty day moving average of $385.66 and a 200 day moving average of $411.17. Microsoft has a 52-week low of $344.79 and a 52-week high of $468.35. The stock has a market cap of $3.24 trillion, a P/E ratio of 35.12, a PEG ratio of 2.21 and a beta of 0.99.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings data on Wednesday, April 30th. The software giant reported $3.46 earnings per share for the quarter, topping analysts’ consensus estimates of $3.22 by $0.24. The company had revenue of $70.07 billion for the quarter, compared to analyst estimates of $68.54 billion. Microsoft had a net margin of 35.43% and a return on equity of 33.36%. The firm’s revenue for the quarter was up 13.3% on a year-over-year basis. During the same period in the prior year, the company posted $2.94 EPS.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of MSFT. Norges Bank acquired a new stake in Microsoft during the 4th quarter valued at approximately $44,343,058,000. GAMMA Investing LLC raised its holdings in shares of Microsoft by 40,290.4% during the first quarter. GAMMA Investing LLC now owns 46,695,303 shares of the software giant’s stock worth $17,528,950,000 after purchasing an additional 46,579,693 shares during the last quarter. Proficio Capital Partners LLC lifted its position in Microsoft by 34,643.3% during the fourth quarter. Proficio Capital Partners LLC now owns 16,837,278 shares of the software giant’s stock valued at $7,096,913,000 after purchasing an additional 16,788,816 shares during the period. Northern Trust Corp boosted its holdings in Microsoft by 16.1% in the fourth quarter. Northern Trust Corp now owns 83,787,746 shares of the software giant’s stock valued at $35,316,535,000 after purchasing an additional 11,600,470 shares during the last quarter. Finally, Vanguard Group Inc. increased its holdings in shares of Microsoft by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 684,071,705 shares of the software giant’s stock valued at $288,336,224,000 after purchasing an additional 10,431,988 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Announces Dividend

The company 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 dividend of $0.83 per share. The ex-dividend date is Thursday, May 15th. This represents a $3.32 dividend on an annualized basis and a yield of 0.76%. Microsoft’s dividend payout ratio is currently 25.66%.

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.