High Volume of Microsoft Call Options Trading

Microsoft Co. (NASDAQ:MSFT - Get Free Report) experienced notable activity in options trading recently. On Tuesday, investors purchased an impressive 355,575 call options for the company. This figure marks a 29% increase over the typical daily volume of 274,666 call options.

Insider Transactions at Microsoft

In related news, Microsoft's CEO, Satya Nadella, sold 14,398 shares on August 23rd at an average price of $417.41, totaling approximately $6 million. Post-transaction, Nadella holds 786,933 shares valued at around $328 million, reflecting a 0.00% decrease in ownership. Another insider, Bradford L. Smith, sold 40,000 shares on September 9th at an average of $402.59, equating to about $16 million. After this sale, Smith owns 544,847 shares, valued at about $219 million, indicating a 0.00% decrease as well. Over the last three months, corporate insiders sold a total of 190,629 shares, valued at $77.9 million, resulting in insider ownership of only 0.03% of the stock.

Hedge Fund Activities

Several large investment firms have adjusted their stakes in Microsoft recently. Banque Cantonale Vaudoise increased its stake by 1.8% in Q1, now holding 282,295 shares worth $118.8 million. Wedmont Private Capital raised its stake by 5.1%, owning 80,247 shares valued at $34.2 million. In addition, Bank of New Hampshire boosted its stake by 15.5%, owning 36,567 shares worth $15.4 million. Grassi Investment Management and Grandview Asset Management have also reported increases to their positions. Currently, 71.13% of Microsoft's stock is held by hedge funds and other institutional investors.

Analyst Ratings and Forecasts

Wall Street analysts have offered various opinions on Microsoft shares. TD Cowen raised its target price from $470.00 to $495.00 with a "buy" rating. Additionally, Royal Bank of Canada maintained an "outperform" rating with a $500 price target. Wells Fargo reiterated its "buy" rating, while Citigroup adjusted its target down to $500 from $520 at the end of July. A mix of ratings shows one sell, three hold, and twenty-eight buy recommendations, leading to a consensus of "Moderate Buy" with an average target of $495.68.

Recent Stock Performance

During midday trading on Tuesday, Microsoft shares increased by 2.1%, reaching $427.51 with a trading volume of over 23 million shares, exceeding the average of 20 million. The stock has witnessed a 50-day moving average of $419.90 and a 200-day average of $424.55. The company's market cap stands at approximately $3.18 trillion, with a PE ratio of 37.05 and a history of fluctuating between a 1-year low of $324.39 and a high of $468.35.

Latest Earnings Report

Microsoft announced quarterly results on July 30th, reporting earnings of $2.95 per share, surpassing expectations of $2.90. With revenue at $64.73 billion, compared to a prior year of $64.38 billion, Microsoft observed a year-on-year growth of 15.2%. Analysts forecast an EPS of 13.02 for the current year.

Dividend Announcements

Microsoft also declared a quarterly dividend of $0.83 per share, to be paid on December 12th for shareholders as of November 21st. This marks an increase from the previous dividend of $0.75, suggesting a current annualized dividend yield of 0.78% and a payout ratio of 28.74%.

Company Overview

Microsoft Corporation is a global leader in software, services, devices, and solutions, offering products like Office applications, Microsoft Teams, and various cloud services to business and consumer markets.

Microsoft, options, trading