Foster & Motley Inc. Reduces Microsoft Stake

Foster & Motley Inc. has reduced its investment in Microsoft Co. (NASDAQ:MSFT – Free Report) by 1.6% during the second quarter, as reported in the firm's latest filing with the Securities and Exchange Commission. After selling 966 shares, the firm now holds a total of 58,931 shares in the tech giant. This adjustment positions Microsoft as 1.8% of Foster & Motley Inc.'s investment portfolio, making it the company's 10th largest holding. As per the latest filing, the value of Foster & Motley Inc.'s holdings in Microsoft stands at approximately $26,339,000.

In addition to Foster & Motley Inc., other institutional investors and hedge funds have also been active in trading Microsoft shares. Christopher J. Hasenberg Inc. notably increased its holdings by 169.2% in the second quarter, now owning 70 shares valued at roughly $31,000 after adding 44 shares. Similarly, Richardson Capital Management LLC raised its stake by 1,290.0% in the first quarter, totaling 139 shares worth $59,000 after buying an additional 129 shares. Innealta Capital LLC also entered a new investment in Microsoft during the second quarter valued around $75,000. Other entities include Bellevue Group AG, which grew its holdings by 47.5%, and Horizon Financial Services LLC acquiring a new stake valued at about $80,000. As a whole, institutional investors and hedge funds collectively control approximately 71.13% of Microsoft's stock.

Analyst Ratings and Forecasts

Recent analyst reports have provided mixed ratings for Microsoft shares. Wedbush maintained an “underperform” rating, while Citigroup adjusted their price target from $520.00 to $500.00 and reiterated a “buy” rating. Oppenheimer revised its outlook, downgrading Microsoft from “outperform” to “market perform.” Royal Bank of Canada reiterated its “outperform” rating, setting a $500.00 price objective. Meanwhile, KeyCorp raised its target price from $490.00 to $505.00, rating the stock as “overweight.” Overall, one analyst has assigned a sell rating, three have a hold rating, and twenty-eight have given a buy rating, leading to a consensus rating of “Moderate Buy” with an average target price of $495.68 according to MarketBeat.com.

Insider Transactions

In related insider activities, Bradford L. Smith sold 40,000 shares on September 9th at an average price of $402.59, resulting in a total transaction amount of $16,103,600. Following this sale, Smith's remaining shares stood at 544,847, valued at around $219,349,953.73, marking a negligible change in ownership. Separate from Smith’s transactions, CEO Satya Nadella sold 78,353 shares on September 4th at an average price of $408.63, garnering about $32,017,386.39. After the transaction, Nadella owns approximately 864,327 shares valued at $353,189,942.01. The share transactions have been detailed in the firm’s SEC filings, which are publicly accessible. In total, insiders have sold 190,629 shares valued at $77,916,485 over the past 90 days, indicating that company insiders collectively own only 0.03% of the firm’s stock.

Stock Performance Overview

As of the last trading session, Microsoft’s stock opened at $418.16. The company maintains a debt-to-equity ratio of 0.16 and both its quick and current ratios stand at 1.27. The stock has been fluctuating within a 52-week range, with a low of $324.39 and a high of $468.35. With a market capitalization of $3.11 trillion, Microsoft holds a P/E ratio of 36.20, a price-to-earnings-growth ratio of 2.22, and a beta of 0.90. The stock is currently showing a fifty-day moving average of $419.66 and a 200-day moving average of $424.49.

Earnings and Dividends

Microsoft's earnings report for the most recent quarter, released on July 30th, revealed an earnings per share (EPS) of $2.95, surpassing analysts’ expectations of $2.90. The firm reported revenue of $64.73 billion, compared to the anticipated $64.38 billion, marking a 15.2% increase from the previous year. The average forecast by financial analysts anticipates Microsoft will post an EPS of 13.02 for the current fiscal year.

Additionally, Microsoft has announced a quarterly dividend of $0.83, which will be distributed on December 12th to shareholders of record as of November 21st. This dividend represents an annualized yield of 0.79%, a slight increase from the prior quarterly dividend of $0.75, with a payout ratio of 28.74%.

Share Buyback Program

In a strategic move, Microsoft’s Board of Directors approved a $60 billion share buyback program on September 16th. This initiative allows for the repurchase of up to 1.9% of its outstanding shares through open market purchases, signaling management’s belief in the company’s undervaluation.

About Microsoft Corporation

Microsoft Corporation develops and provides a range of software, services, and devices globally. Its business segments include Productivity and Business Processes, offering various services like Microsoft Teams and Office 365, along with consumer services such as subscriptions and licensed products.

Microsoft, Investment, Shares