Microsoft Corporation (NASDAQ:MSFT) experienced a decline of 2.3% during mid-day trading on Wednesday, falling to $444.11 after Rothschild & Co Redburn reduced their price target for the company from $500.00 to $450.00, maintaining a neutral rating. The stock reached a low of $438.68 earlier in the trading session, with over 37.5 million shares exchanged—marking a 45% increase in volume compared to the average of approximately 26 million shares. The previous closing price stood at $454.52.
Analyst reviews have been mixed recently, with Melius Research increasing their price target from $595.00 to $625.00, while KeyCorp reaffirmed an “overweight” rating on Microsoft. Citigroup lowered their target from $690.00 to $660.00, maintaining a “buy” rating. Redburn Partners set a price objective of $560.00, and Mizuho adjusted their target from $640.00 to $620.00 with an “outperform” rating. Overall, three analysts have issued a Strong Buy rating, thirty-six have a Buy rating, and three maintain a Hold rating, with a consensus price target averaging $624.08.
In another recent development, CEO Judson Althoff sold 12,750 shares at an average price of $491.52, totaling approximately $6.27 million, which reflects an 8.97% reduction in his ownership. Additionally, EVP Takeshi Numoto sold 2,850 shares for about $1.36 million, indicating a 4.86% decrease in ownership. Insider trading details have been made available through SEC filings.
Microsoft’s recent activity has also included changes in institutional ownership. Hedge funds and institutional investors have significantly altered their stakes, with Longfellow Investment Management increasing its shareholdings by 51.3%, now holding 59 shares. Other funds like Westend Capital Management and Bayforest Capital Ltd have also expanded their positions, highlighting a continued interest in the company despite the stock price fluctuations. Institutional ownership stands at approximately 71.13%.
From a performance perspective, Microsoft has a market capitalization of $3.30 trillion, with a current ratio of 1.40 and a debt-to-equity ratio of 0.10. The software giant recently reported quarterly earnings of $4.13 per share, exceeding the consensus estimate of $3.65. Revenues were recorded at $77.67 billion, surpassing expectations of $75.49 billion, demonstrating an impressive 18.4% year-over-year growth.
Microsoft recently announced a quarterly dividend of $0.91 per share, set to be distributed on March 12, which indicates a $3.64 annualized dividend and a yield of 0.8%. With a dividend payout ratio of 25.89%, the company continues to reward its shareholders.
As a leading technology company established in 1975 by Bill Gates and Paul Allen, Microsoft develops a vast array of software products and services for consumers and enterprises globally. Its product lineup includes the widely-used Windows operating system and the Microsoft 365 suite of productivity tools, positioning it well within the competitive technology market.
Despite the recent drop in stock price, analysts still acknowledge the potential for growth and resilience within Microsoft’s operations, making it a company to watch moving forward.