Piper Jaffray Companies Equities Analysts Cut Earnings Estimates for Microsoft Co. (MSFT)

Microsoft Co. (NASDAQ:MSFT) – Research analysts at Piper Jaffray Companies reduced their Q4 2019 earnings per share estimates for Microsoft in a report issued on Thursday, October 25th. Piper Jaffray Companies analyst A. Zukin now expects that the software giant will earn $1.10 per share for the quarter, down from their prior forecast of $1.37. Piper Jaffray Companies has a “Overweight” rating and a $123.00 price target on the stock.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Wednesday, October 24th. The software giant reported $1.14 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.96 by $0.18. Microsoft had a return on equity of 39.86% and a net margin of 16.38%. The business had revenue of $29.08 billion during the quarter, compared to analyst estimates of $27.92 billion. During the same quarter in the previous year, the firm posted $0.84 EPS. The business’s revenue for the quarter was up 18.5% compared to the same quarter last year.



MSFT has been the subject of a number of other research reports. Barclays boosted their price target on Microsoft from $117.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, September 7th. Oppenheimer set a $127.00 price target on Microsoft and gave the stock a “buy” rating in a research report on Monday, October 1st. Credit Suisse Group set a $125.00 price target on Microsoft and gave the stock a “buy” rating in a research report on Tuesday, October 2nd. Wells Fargo & Co reiterated a “buy” rating and set a $130.00 price target on shares of Microsoft in a research report on Thursday, September 27th. Finally, Macquarie reiterated a “buy” rating on shares of Microsoft in a research report on Monday, October 15th. One analyst has rated the stock with a sell rating, two have given a hold rating, thirty-three have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus target price of $121.88.

NASDAQ:MSFT opened at $106.96 on Monday. Microsoft has a 12-month low of $80.70 and a 12-month high of $116.18. The company has a market cap of $823.57 billion, a P/E ratio of 27.57, a P/E/G ratio of 1.99 and a beta of 1.28. The company has a quick ratio of 2.86, a current ratio of 2.92 and a debt-to-equity ratio of 0.88.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 13th. Stockholders of record on Thursday, November 15th will be paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.72%. The ex-dividend date is Wednesday, November 14th. This is an increase from Microsoft’s previous quarterly dividend of $0.42. Microsoft’s payout ratio is currently 43.30%.

In other news, CEO Satya Nadella sold 328,000 shares of the business’s stock in a transaction on Friday, August 10th. The stock was sold at an average price of $109.44, for a total value of $35,896,320.00. Following the sale, the chief executive officer now owns 778,596 shares of the company’s stock, valued at approximately $85,209,546.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CMO Christopher C. Capossela sold 23,337 shares of the business’s stock in a transaction on Monday, September 10th. The stock was sold at an average price of $109.22, for a total value of $2,548,867.14. Following the completion of the sale, the chief marketing officer now directly owns 190,570 shares in the company, valued at approximately $20,814,055.40. The disclosure for this sale can be found here. Insiders sold a total of 853,460 shares of company stock worth $92,965,482 in the last three months. Company insiders own 1.49% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Good Life Advisors LLC raised its position in shares of Microsoft by 19.2% during the third quarter. Good Life Advisors LLC now owns 18,614 shares of the software giant’s stock worth $2,129,000 after purchasing an additional 2,995 shares during the period. Gilman Hill Asset Management LLC raised its position in shares of Microsoft by 6.4% during the third quarter. Gilman Hill Asset Management LLC now owns 12,093 shares of the software giant’s stock worth $1,383,000 after purchasing an additional 725 shares during the period. Northwest Capital Management Inc raised its position in shares of Microsoft by 33.1% during the third quarter. Northwest Capital Management Inc now owns 37,611 shares of the software giant’s stock worth $4,301,000 after purchasing an additional 9,351 shares during the period. State Treasurer State of Michigan raised its position in shares of Microsoft by 0.3% during the third quarter. State Treasurer State of Michigan now owns 2,957,317 shares of the software giant’s stock worth $338,228,000 after purchasing an additional 10,200 shares during the period. Finally, First National Bank of Hutchinson acquired a new stake in shares of Microsoft during the third quarter worth $957,000. 71.91% of the stock is currently owned by institutional investors.

Microsoft Company Profile

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises.

Further Reading: Bond

Earnings History and Estimates for Microsoft (NASDAQ:MSFT)

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