Piper Jaffray Companies Comments on Microsoft Co.’s FY2020 Earnings (MSFT)

Microsoft Co. (NASDAQ:MSFT) – Equities researchers at Piper Jaffray Companies lifted their FY2020 earnings per share (EPS) estimates for shares of Microsoft in a research note issued on Thursday, April 25th. Piper Jaffray Companies analyst A. Zukin now anticipates that the software giant will post earnings per share of $5.07 for the year, up from their previous forecast of $4.96. Piper Jaffray Companies currently has a “Overweight” rating and a $140.00 target price on the stock. Piper Jaffray Companies also issued estimates for Microsoft’s Q4 2020 earnings at $1.37 EPS, Q1 2021 earnings at $1.37 EPS, Q2 2021 earnings at $1.28 EPS, Q3 2021 earnings at $1.49 EPS and FY2021 earnings at $5.66 EPS.

Other equities analysts have also issued research reports about the company. Bank of America raised Microsoft to a “buy” rating and decreased their price target for the company from $150.00 to $140.00 in a research note on Monday, January 28th. They noted that the move was a valuation call. Credit Suisse Group set a $125.00 target price on Microsoft and gave the stock a “buy” rating in a research note on Sunday, January 27th. Zacks Investment Research raised Microsoft from a “hold” rating to a “buy” rating and set a $118.00 target price on the stock in a research note on Thursday, January 24th. Goldman Sachs Group reissued a “buy” rating and set a $123.00 target price on shares of Microsoft in a research note on Wednesday, January 23rd. Finally, Royal Bank of Canada reissued a “buy” rating and set a $124.00 target price on shares of Microsoft in a research note on Monday, January 21st. One research analyst has rated the stock with a sell rating, three have issued a hold rating, twenty-seven have given a buy rating and three have given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $133.30.

Shares of Microsoft stock opened at $129.89 on Monday. Microsoft has a 52 week low of $92.45 and a 52 week high of $131.37. The firm has a market capitalization of $1,000.13 billion, a PE ratio of 33.48, a price-to-earnings-growth ratio of 2.33 and a beta of 1.22. The company has a current ratio of 2.97, a quick ratio of 3.08 and a debt-to-equity ratio of 0.70.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, April 24th. The software giant reported $1.14 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.00 by $0.14. Microsoft had a return on equity of 39.34% and a net margin of 28.58%. The business had revenue of $30.57 billion for the quarter, compared to analyst estimates of $29.86 billion. During the same quarter in the prior year, the company posted $0.95 EPS. The company’s quarterly revenue was up 14.0% on a year-over-year basis.

Hedge funds and other institutional investors have recently modified their holdings of the business. Quantamental Technologies LLC purchased a new position in Microsoft during the 4th quarter worth approximately $26,000. Highwater Wealth Management LLC purchased a new position in Microsoft during the 4th quarter worth approximately $27,000. Mackey Komara & Dankovich LLC purchased a new position in Microsoft during the 4th quarter worth approximately $30,000. Sageworth Trust Co grew its stake in Microsoft by 1,525.0% during the 1st quarter. Sageworth Trust Co now owns 260 shares of the software giant’s stock worth $31,000 after buying an additional 244 shares during the last quarter. Finally, Pearl River Capital LLC purchased a new position in Microsoft during the 4th quarter worth approximately $38,000. Institutional investors own 72.94% of the company’s stock.

In other Microsoft news, EVP Christopher C. Capossela sold 10,500 shares of the company’s stock in a transaction dated Monday, March 11th. The stock was sold at an average price of $111.48, for a total transaction of $1,170,540.00. Following the sale, the executive vice president now owns 156,866 shares in the company, valued at approximately $17,487,421.68. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Satya Nadella sold 267,466 shares of the company’s stock in a transaction dated Wednesday, February 6th. The stock was sold at an average price of $106.01, for a total value of $28,354,070.66. Following the sale, the chief executive officer now owns 1,746,854 shares in the company, valued at approximately $185,183,992.54. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 333,667 shares of company stock worth $35,657,016. 1.38% of the stock is owned by company insiders.

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 13th. Shareholders of record on Wednesday, May 15th will be issued a dividend of $0.46 per share. The ex-dividend date is Wednesday, May 15th. This represents a $1.84 annualized dividend and a yield of 1.42%. Microsoft’s dividend payout ratio (DPR) is 47.42%.

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, 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.

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Earnings History and Estimates for Microsoft (NASDAQ:MSFT)

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