Microsoft Target of Unusually Large Options Trading (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFTGet Free Report) was the target of some unusual options trading activity on Friday. Stock traders acquired 1,189,283 call options on the stock. This is an increase of 53% compared to the typical volume of 776,749 call options.

Microsoft Stock Performance

Shares of MSFT traded up $12.16 during midday trading on Friday, reaching $421.59. 36,287,936 shares of the stock were exchanged, compared to its average volume of 35,435,422. Microsoft has a twelve month low of $356.28 and a twelve month high of $555.45. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The company has a market cap of $3.13 trillion, a P/E ratio of 25.20, a PEG ratio of 1.46 and a beta of 1.10. The stock’s 50 day simple moving average is $397.84 and its 200 day simple moving average is $441.52.

Microsoft (NASDAQ:MSFTGet Free Report) last posted its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same quarter last year, the firm earned $3.46 earnings per share. The company’s revenue was up 18.3% on a year-over-year basis. On average, sell-side analysts expect that Microsoft will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s dividend payout ratio (DPR) is currently 21.67%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on MSFT shares. Morgan Stanley reaffirmed an “overweight” rating on shares of Microsoft in a report on Thursday, January 29th. TD Cowen raised Microsoft from a “buy” rating to a “hold” rating in a report on Tuesday, May 5th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. Rothschild & Co Redburn cut their price target on Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Finally, Robert W. Baird cut their price target on Microsoft from $540.00 to $500.00 and set an “outperform” rating for the company in a report on Wednesday, April 15th. Thirty-nine investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Microsoft has an average rating of “Moderate Buy” and a consensus price target of $560.88.

View Our Latest Research Report on MSFT

Insider Buying and Selling at Microsoft

In related news, EVP Kathleen T. Hogan sold 12,321 shares of the firm’s stock in a transaction on Friday, March 6th. The shares were sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the transaction, the executive vice president directly owned 137,933 shares of the company’s stock, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John W. Stanton bought 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, February 18th. The stock was purchased at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the purchase, the director directly owned 83,905 shares of the company’s stock, valued at $33,339,651.75. This represents a 6.34% increase in their position. The SEC filing for this purchase provides additional information. 0.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of MSFT. WFA Asset Management Corp increased its position in shares of Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after purchasing an additional 216 shares during the period. Ironwood Wealth Management LLC. increased its position in shares of Microsoft by 0.3% in the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after purchasing an additional 38 shares during the period. Discipline Wealth Solutions LLC increased its position in shares of Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after purchasing an additional 2,138 shares during the period. Wealth Group Ltd. increased its position in shares of Microsoft by 1.2% in the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after purchasing an additional 28 shares during the period. Finally, Eagle Capital Management LLC increased its position in shares of Microsoft by 0.4% in the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after purchasing an additional 96 shares during the period. Institutional investors own 71.13% of the company’s stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

Microsoft Company Profile

(Get Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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