Fintel reports that on October 2, 2023, Jefferies reiterated coverage of Microsoft (NASDAQ:MSFT) with a Buy recommendation.
Analyst Price Forecast Suggests 25.07% Upside
As of August 31, 2023, the average one-year price target for Microsoft is 394.91. The forecasts range from a low of 234.32 to a high of $462.00. The average price target represents an increase of 25.07% from its latest reported closing price of 315.75.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Microsoft is 244,898MM, an increase of 15.56%. The projected annual non-GAAP EPS is 11.41.
Microsoft Declares $0.75 Dividend
On September 19, 2023 the company declared a regular quarterly dividend of $0.75 per share ($3.00 annualized). Shareholders of record as of November 16, 2023 will receive the payment on December 14, 2023. Previously, the company paid $0.68 per share.
At the current share price of $315.75 / share, the stock's dividend yield is 0.95%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.11%, the lowest has been 0.72%, and the highest has been 1.95%. The standard deviation of yields is 0.29 (n=235).
The current dividend yield is 0.54 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.31. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.34%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 7078 funds or institutions reporting positions in Microsoft. This is an increase of 64 owner(s) or 0.91% in the last quarter. Average portfolio weight of all funds dedicated to MSFT is 3.78%, an increase of 6.57%. Total shares owned by institutions decreased in the last three months by 4.14% to 5,880,455K shares. 
The put/call ratio of MSFT is 0.92, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 231,883K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 230,422K shares, representing an increase of 0.63%. The firm increased its portfolio allocation in MSFT by 9.67% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 177,035K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 173,695K shares, representing an increase of 1.89%. The firm increased its portfolio allocation in MSFT by 9.04% over the last quarter.
Price T Rowe Associates holds 159,904K shares representing 2.15% ownership of the company. In it's prior filing, the firm reported owning 166,036K shares, representing a decrease of 3.83%. The firm increased its portfolio allocation in MSFT by 138.90% over the last quarter.
Geode Capital Management holds 148,129K shares representing 1.99% ownership of the company. In it's prior filing, the firm reported owning 144,366K shares, representing an increase of 2.54%. The firm increased its portfolio allocation in MSFT by 9.63% over the last quarter.
Jpmorgan Chase holds 113,025K shares representing 1.52% ownership of the company. In it's prior filing, the firm reported owning 94,618K shares, representing an increase of 16.29%. The firm increased its portfolio allocation in MSFT by 25.86% over the last quarter.
Microsoft Background Information
(This description is provided by the company.)
Microsoft enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
