Davidson Investment Advisors Increases Its Stake in Microsoft Co.

Davidson Investment Advisors has raised its stake in Microsoft Co. (NASDAQ:MSFT) by 0.6% during the second quarter of the year, according to reports from Holdings Channel. The investment firm now owns a total of 207,279 shares of Microsoft after acquiring an additional 1,213 shares. This investment makes Microsoft approximately 4.8% of Davidson Investment Advisors' entire portfolio, positioning it as the fourth largest holding in their investment strategy. At the close of the most recent reporting period, these shares were valued at approximately $92,643,000.

In addition to Davidson Investment Advisors, several other institutional investors have also modified their stake in Microsoft. For instance, Warren Street Wealth Advisors LLC increased its position by 16.5% in the fourth quarter, bringing its total to 6,767 shares worth about $2,545,000 after acquiring 956 additional shares. Czech National Bank also raised its stake by 0.4%, now holding 1,307,487 shares valued at around $550,086,000 following the purchase of 5,253 shares. True Link Financial Advisors LLC dramatically boosted its holdings by 296.7%, now owning 3,027 shares worth about $1,274,000 after buying 2,264 shares.

Moreover, United Advisor Group LLC entered a new position in Microsoft in the fourth quarter with a purchase valued at $9,538,000. Meanwhile, AMG National Trust Bank increased its shares by 19.0% in the second quarter, owning 81,502 shares valued at approximately $36,427,000 after acquiring an additional 12,994 shares. Currently, institutional investors and hedge funds hold about 71.13% of Microsoft’s shares.

Current Stock Performance of Microsoft

As of today, Microsoft shares opened at $416.32. The company maintains a current ratio of 1.27, a quick ratio also of 1.27, and a debt-to-equity ratio of 0.16. With a market cap of $3.09 trillion, the company has a P/E ratio of 35.25 and a PEG ratio of 2.22. Microsoft’s stock has a beta of 0.90. Its 50-day moving average is at $417.92, while the 200-day moving average is $424.63. The stock achieved a 12-month low of $324.39 and a high of $468.35.

In its latest earnings report released on July 30th, Microsoft announced earnings per share (EPS) of $2.95, exceeding analysts’ expectations of $2.90 by $0.05. The company’s revenue for the quarter was recorded at $64.73 billion, surpassing analysts' predictions of $64.38 billion. Microsoft reported a net margin of 35.96% and a return on equity of 35.95%. The quarterly revenue represents a robust growth of 15.2% compared to the same quarter last year, where the EPS was $2.69. Analysts are projecting an EPS of 13.02 for the current fiscal year.

On September 16th, Microsoft’s board announced a new share repurchase plan authorizing the buyback of $60.00 billion of its shares, equivalent to 1.9% of its total stock, signalling a belief that its shares are undervalued.

Dividend Announcement by Microsoft

Recently, Microsoft declared a quarterly dividend, expected to be paid on December 12th. Shareholders on record from November 21st will receive a dividend of $0.83 per share, an increase from the previous dividend of $0.75. This increase translates to an annualized dividend of $3.32, providing a yield of 0.80%. Currently, Microsoft's payout ratio stands at 25.40%.

Insider Transactions

In insider news, Bradford L. Smith sold 40,000 shares of Microsoft on September 9th at an average price of $402.59, totaling approximately $16,103,600. Following this sale, Smith retains 544,847 shares valued around $219,349,953.73, reflecting no change in ownership percentage. Similarly, CMO Takeshi Numoto sold 2,500 shares on September 10th, valued at $1,027,600, retaining 50,000 shares currently worth about $20,552,000. Collectively, insiders sold 190,629 shares worth approximately $77,916,485 in the last quarter, with insiders holding just 0.03% of the company’s stock.

Analyst Ratings

Various brokerages have released assessments on MSFT stock lately. DA Davidson downgraded its rating from “buy” to “neutral” with a target price of $475. Moreover, BMO Capital Markets raised its target from $465.00 to $500.00 while maintaining an “outperform” rating. Goldman Sachs adjusted its price objective from $515.00 to $500.00 and continued a “buy” stance. Similarly, Citigroup lowered its price objective from $520.00 to $500.00 and kept a “buy” rating, while TD Cowen lifted their target from $470.00 to $495.00. Currently, three analysts have rated the stock as a hold, while thirty have a buy rating. On average, Microsoft holds a consensus rating of “Moderate Buy” with a target price of $493.47.

Understanding Microsoft

Microsoft Corporation is a leading technology company that develops and supports a wide range of software, services, devices, and solutions globally. The company’s various segments include Productivity and Business Processes, where popular products like Office, Exchange, SharePoint, and Microsoft Teams are offered. With a commitment to innovation, Microsoft continues to enhance its offerings, ensuring relevancy and growth in the technology landscape.

Microsoft, Investment, Shares