On May 4, 2023 at 11:29:19 ET an unusually large $1,142.91K block of Call contracts in Microsoft (MSFT) was bought, with a strike price of $300.00 / share, expiring in 78 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.61 sigmas above the mean, placing it in the 93.41th percentile of all recent large trades made in MSFT options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 6951 funds or institutions reporting positions in Microsoft. This is an increase of 132 owner(s) or 1.94% in the last quarter. Average portfolio weight of all funds dedicated to MSFT is 2.96%, a decrease of 10.07%. Total shares owned by institutions increased in the last three months by 0.22% to 6,012,571K shares. The put/call ratio of MSFT is 0.98, indicating a bullish outlook.

Analyst Price Forecast Suggests 0.81% Upside

As of April 24, 2023, the average one-year price target for Microsoft is 306.86. The forecasts range from a low of 214.12 to a high of $420.00. The average price target represents an increase of 0.81% from its latest reported closing price of 304.40.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Microsoft is 216,709MM, an increase of 4.39%. The projected annual non-GAAP EPS is 9.74.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 226,595K shares representing 3.05% ownership of the company. In it’s prior filing, the firm reported owning 222,314K shares, representing an increase of 1.89%. The firm decreased its portfolio allocation in MSFT by 3.08% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 172,327K shares representing 2.32% ownership of the company. In it’s prior filing, the firm reported owning 169,063K shares, representing an increase of 1.89%. The firm decreased its portfolio allocation in MSFT by 3.31% over the last quarter.

Price T Rowe Associates holds 168,647K shares representing 2.27% ownership of the company. In it’s prior filing, the firm reported owning 171,347K shares, representing a decrease of 1.60%. The firm decreased its portfolio allocation in MSFT by 0.93% over the last quarter.

Geode Capital Management holds 142,731K shares representing 1.92% ownership of the company. In it’s prior filing, the firm reported owning 139,462K shares, representing an increase of 2.29%. The firm decreased its portfolio allocation in MSFT by 2.57% over the last quarter.

Jpmorgan Chase holds 93,021K shares representing 1.25% ownership of the company. In it’s prior filing, the firm reported owning 92,745K shares, representing an increase of 0.30%. The firm decreased its portfolio allocation in MSFT by 5.19% over the last quarter.

Microsoft Declares $0.68 Dividend

On March 14, 2023 the company declared a regular quarterly dividend of $0.68 per share ($2.72 annualized). Shareholders of record as of May 18, 2023 will receive the payment on June 8, 2023. Previously, the company paid $0.68 per share.

At the current share price of $304.40 / share, the stock’s dividend yield is 0.89%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.17%, the lowest has been 0.72%, and the highest has been 1.95%. The standard deviation of yields is 0.31 (n=236).

The current dividend yield is 0.89 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.29. 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 0.33%, demonstrating that it has increased its dividend over time.

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.

See all Microsoft regulatory filings.

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.