Griffin Securities Lowers Microsoft Q2 EPS Estimates Ahead of Earnings

Analysts at Griffin Securities have revised their earnings per share (EPS) estimates for Microsoft Corporation for the second quarter of 2026. In a note issued to investors on November 3, 2023, analyst J. Vleeschhouwer now projects the software giant will earn $3.56 per share, down from a previous estimate of $3.79. This adjustment comes as Microsoft prepares to report its earnings for the current fiscal year, with consensus estimates sitting at $13.08 per share.

In addition to the Q2 estimates, Griffin Securities provided figures for Microsoft’s Q4 2026 earnings, projecting an EPS of $3.59, and a full-year 2026 earnings estimate of $14.77.

Market Reactions and Analyst Ratings

Microsoft’s stock has been the subject of multiple analyses in recent weeks. On October 30, 2023, DA Davidson set a price target of $650.00 on Microsoft shares. In the same week, Wells Fargo & Company raised its price target from $675.00 to $700.00 and assigned an “overweight” rating. Additionally, Melius Research increased its target from $595.00 to $625.00, while Wolfe Research set a target price of $675.00 and maintained an “outperform” rating.

Overall, one equity research analyst has rated Microsoft stock as a Strong Buy, while thirty-seven analysts have given it a Buy rating, with one analyst assigning a Hold rating. According to data from MarketBeat, the consensus rating for Microsoft is “Buy,” with a target price averaging $634.59.

Current Stock Performance

On November 3, 2023, Microsoft shares opened at $497.10, reflecting a decline of 2.0% from previous trading sessions. The stock has experienced fluctuations over the past year, with a low of $344.79 and a high of $555.45. The company’s fifty-day moving average is $514.07, while the two-hundred-day moving average is $490.60.

Microsoft boasts a market capitalization of $3.69 trillion and a P/E ratio of 35.36. Its debt-to-equity ratio stands at 0.12, with a quick ratio and current ratio both at 1.35. In its latest earnings report released on October 29, 2023, Microsoft reported an EPS of $4.13, surpassing the consensus estimate of $3.65 by $0.48. The company generated revenue of $77.67 billion for the quarter, exceeding analyst estimates of $75.49 billion, marking an 18.4% increase year-over-year.

Dividend Increase Announced

In a positive development for shareholders, Microsoft recently declared a quarterly dividend of $0.91, set to be paid on December 11, 2023. Shareholders of record as of November 20, 2023, will receive this dividend, which represents an annualized figure of $3.64 and a yield of 0.7%. This is an increase from the previous quarterly dividend of $0.83, and the ex-dividend date is also November 20, 2023. Microsoft’s dividend payout ratio (DPR) currently stands at 25.89%.

Insider trading has also been notable, with Bradford L. Smith, an insider, selling 38,500 shares on November 3, 2023, at an average price of $518.64, totaling approximately $19.97 million. After this transaction, Smith owned 461,597 shares valued at around $239.4 million, reflecting a 7.70% decrease in ownership. Additionally, Takeshi Numoto, Executive Vice President, sold 4,850 shares on August 12, 2023, valued at around $2.56 million, marking an 11.03% decrease in ownership.

Institutional Investment Trends

Several large institutional investors have adjusted their positions in Microsoft recently. WFA Asset Management Corp increased its holdings by 27.0% during the first quarter, now owning 1,016 shares valued at $427,000. Ironwood Wealth Management LLC raised its stake by 0.3% in the second quarter, holding 12,658 shares worth $5.66 million.

Other firms, like Discipline Wealth Solutions LLC and Wealth Group Ltd., have also expanded their positions significantly. Institutional investors collectively own 71.13% of Microsoft’s stock, indicating robust institutional interest in the company.

Microsoft continues to develop and support a range of software, services, and devices worldwide, with significant segments including productivity solutions and cloud services. As the company positions itself for future growth, analysts and investors will be closely monitoring its performance and strategic initiatives in the coming quarters.