Microsoft (NASDAQ:MSFT) Lowered to “Market Perform” at BMO Capital Markets

Microsoft (NASDAQ:MSFTGet Rating) was downgraded by equities researchers at BMO Capital Markets from an “outperform” rating to a “market perform” rating in a research note issued to investors on Wednesday, The Fly reports. They currently have a $265.00 target price on the software giant’s stock, down from their prior target price of $267.00. BMO Capital Markets’ price target would indicate a potential upside of 9.49% from the stock’s previous close. The analysts noted that the move was a valuation call.

A number of other research analysts also recently issued reports on the stock. Piper Sandler reduced their price objective on shares of Microsoft from $265.00 to $247.00 and set an “overweight” rating on the stock in a research report on Monday, January 9th. Rosenblatt Securities reduced their target price on shares of Microsoft from $300.00 to $285.00 and set a “buy” rating on the stock in a research report on Thursday, October 27th. Royal Bank of Canada set a $285.00 target price on shares of Microsoft in a research report on Wednesday, January 18th. StockNews.com downgraded shares of Microsoft from a “buy” rating to a “hold” rating in a research report on Thursday, January 19th. Finally, Deutsche Bank Aktiengesellschaft reduced their target price on shares of Microsoft from $315.00 to $275.00 and set a “buy” rating on the stock in a research report on Wednesday, October 26th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and twenty-eight have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $287.03.

Microsoft Stock Down 0.2 %

Shares of NASDAQ MSFT opened at $242.04 on Wednesday. The company has a quick ratio of 1.79, a current ratio of 1.84 and a debt-to-equity ratio of 0.26. Microsoft has a 52 week low of $213.43 and a 52 week high of $315.95. The firm’s fifty day moving average is $241.72 and its 200 day moving average is $249.53. The company has a market cap of $1.80 trillion, a price-to-earnings ratio of 26.08, a PEG ratio of 2.39 and a beta of 0.94.

Microsoft (NASDAQ:MSFTGet Rating) last issued its earnings results on Tuesday, January 24th. The software giant reported $2.32 EPS for the quarter, topping the consensus estimate of $2.30 by $0.02. Microsoft had a net margin of 34.37% and a return on equity of 42.10%. The company had revenue of $52.75 billion for the quarter, compared to the consensus estimate of $53.17 billion. During the same period in the previous year, the firm earned $2.48 earnings per share. The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. On average, equities research analysts expect that Microsoft will post 9.49 earnings per share for the current year.

Insider Activity

In other news, EVP Judson Althoff sold 24,144 shares of the company’s stock in a transaction dated Thursday, December 1st. The shares were sold at an average price of $254.27, for a total transaction of $6,139,094.88. Following the completion of the sale, the executive vice president now owns 150,047 shares of the company’s stock, valued at approximately $38,152,450.69. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Lindbrook Capital LLC grew its holdings in Microsoft by 8.9% during the 4th quarter. Lindbrook Capital LLC now owns 47,529 shares of the software giant’s stock valued at $11,398,000 after buying an additional 3,877 shares in the last quarter. Intelligent Financial Strategies grew its holdings in Microsoft by 10.5% during the 4th quarter. Intelligent Financial Strategies now owns 6,087 shares of the software giant’s stock valued at $1,460,000 after buying an additional 579 shares in the last quarter. Kooman & Associates purchased a new stake in Microsoft during the 4th quarter valued at approximately $807,000. Bill Few Associates Inc. grew its holdings in Microsoft by 0.5% during the 4th quarter. Bill Few Associates Inc. now owns 38,717 shares of the software giant’s stock valued at $9,285,000 after buying an additional 181 shares in the last quarter. Finally, Bouchey Financial Group Ltd boosted its position in shares of Microsoft by 4.1% during the 4th quarter. Bouchey Financial Group Ltd now owns 10,577 shares of the software giant’s stock valued at $2,537,000 after acquiring an additional 412 shares during the last quarter. 69.15% of the stock is owned by hedge funds and other institutional investors.

About Microsoft

(Get Rating)

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook.com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions.

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