Microsoft might loosen purse strings for shareholders

By | December 5, 2014

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Microsoft (MSFT) stock got a boost Thursday on speculation that the company might be planning to return more cash to shareholders. Microsoft rose 1.6% to 48.84 on the reports. In a research note Thursday, Nomura analyst Rick Sherlund said he believes Microsoft is likely to spend more of its cash hoard on share repurchases. Whereas predecessors Steve Ballmer and Bill Gates preferred to “retain cash for a rainy day,” new CEO Satya Nadella may be open to bigger capital returns, Sherlund said. Sherlund reiterated his buy rating on Microsoft stock and raised his price target to 56 from 50. Changes to the board of directors make an increased capital return program more likely, Sherlund said, according to the Wall Street Journal. John Thompson, former CEO of Symantec(SYMC) replaced Gates as chairman in February and Ballmer left the board in August. Plus, activist hedge fund ValueAct Capital Management has gotten… Scalper1 News

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