First Interstate Bank Reduces Stake in Microsoft

First Interstate Bank has decreased its stake in Microsoft Corporation (NASDAQ:MSFT) by 1.3% during the second quarter of the year, as indicated by its recent filing with the Securities and Exchange Commission (SEC). After selling 639 shares in the quarter, the bank now holds 47,718 shares of the renowned software company. Microsoft constitutes approximately 1.4% of First Interstate Bank’s overall holdings, positioning it as the bank's 15th largest investment. As per the latest SEC filing, the value of First Interstate Bank’s Microsoft shares stands at $21,328,000.

In addition to First Interstate Bank, various institutional investors and hedge funds have also recently adjusted their Microsoft holdings. Christopher J. Hasenberg Inc increased its stake in Microsoft by a remarkable 169.2% in the second quarter, acquiring an additional 44 shares to reach a total of 70 shares valued at $31,000. Similarly, Richardson Capital Management LLC expanded its position in Microsoft by 1,290.0% in the first quarter, owning now 139 shares valued at $59,000 after adding 129 shares. Innealta Capital LLC also made a new investment in Microsoft during the second quarter, valued at $75,000. Moreover, Bellevue Group AG raised its holdings in the company by 47.5% in the first quarter, now possessing 180 shares worth $76,000 after buying 58 additional shares. Horizon Financial Services LLC entered the Microsoft market with a new stake worth $80,000 in the same quarter. According to reports, institutional investors collectively own 71.13% of Microsoft’s stock.

Market Analysts' Insights

Multiple brokerages have given their assessments on Microsoft (MSFT). For instance, Wells Fargo & Company has reiterated a “buy” rating for Microsoft shares in their report dated October 18th. BMO Capital Markets upgraded their target price from $465.00 to $500.00 while maintaining an “outperform” rating on July 12th. Additionally, TD Cowen raised their price target from $470.00 to $495.00, classifying Microsoft as a “buy” in a report on July 18th. In a different report released on October 18th, Piper Sandler decreased their target price from $485.00 to $470.00, while still maintaining an “overweight” rating for the stock. Also, Truist Financial affirmed a “buy” rating, setting a price target of $600.00 on October 8th. In total, one analyst has issued a sell rating, three have given a hold recommendation, and twenty-eight analysts rate the stock as a buy. As per data from MarketBeat.com, the consensus rating stands at “Moderate Buy” with a price target of $495.94.

Microsoft's Stock Performance and Financials

As of the last trading session, Microsoft (MSFT) opened at $428.15. The stock has experienced a 52-week low of $326.94 and a high of $468.35. Current moving averages stand at $420.40 for the last 50 days and $424.56 for the last 200 days. Financially, Microsoft holds a quick ratio of 1.27, a current ratio of 1.27, and a low debt-to-equity ratio of 0.16, showcasing its solid financial health. The company's market capitalization is approximately $3.18 trillion, with a PE ratio of 37.07 and a price-to-earnings-growth ratio of 2.24.

Recently, Microsoft released its quarterly earnings report which revealed an earnings per share (EPS) of $2.95 for the previous quarter, outperforming the analysts’ average estimate of $2.90 by $0.05. The company’s revenue reached $64.73 billion during the quarter, exceeding the anticipated $64.38 billion. Microsoft reported a 35.95% return on equity and a net margin of 35.96%. Compared to the same quarter last year, revenue increased by 15.2%. Analysts predict that Microsoft will post an EPS of 13.02 for the current fiscal year.

Dividend Announcement

Moreover, Microsoft has recently declared a quarterly dividend of $0.83, which is scheduled to be paid on December 12th. Shareholders on record as of November 21st will receive this dividend. The current dividend reflects an annual payout of $3.32, giving a yield of 0.78%. This recent increase from the previous quarterly dividend of $0.75 suggests a confident outlook from Microsoft’s management. The company's current dividend payout ratio is 28.74%.

Additionally, Microsoft’s Board of Directors announced a new stock buyback plan on September 16th, with an authorization to repurchase up to $60.00 billion worth of its shares, representing approximately 1.9% of its total outstanding shares. Such buyback programs typically indicate that company executives believe the stock is undervalued.

Insider Transactions

In recent insider news, CMO Takeshi Numoto sold 2,500 shares on September 10th at an average price of $411.04, with a total transaction value equating to $1,027,600. Following this transaction, Numoto holds 50,000 shares in Microsoft, valued around $20,552,000, reflecting no change in ownership percentage. Furthermore, Bradford L. Smith, another insider, sold 40,000 shares on September 9th, receiving $16,103,600. After this trade, he possesses 544,847 shares worth approximately $219,349,953.73, again with no percentage change in ownership. Over the past three months, insiders have sold shares valued at $77,916,485, making up 0.03% of the total shares owned by insiders.

About Microsoft

Microsoft Corporation specializes in developing and supporting various software, services, devices, and solutions globally. Their offerings include segments such as Productivity and Business Processes that encompass Office, SharePoint, Microsoft Teams, and various other Microsoft 365 services.

Microsoft, Bank, Investors