Coerente Capital Management Maintains Largest Stake in Microsoft Co.

Coerente Capital Management has made a slight adjustment to its holdings in Microsoft Corp. (NASDAQ: MSFT) as indicated by its latest Form 13F filing with the Securities and Exchange Commission. During the third quarter, Coerente Capital reduced its position by 0.2%, resulting in ownership of 120,196 shares after selling 264 shares during this period.

Microsoft remains the largest investment in Coerente Capital's portfolio, representing approximately 9.6% of their total holdings. At the end of the reporting period, the value of their Microsoft shares stood at $51,720,000.

Institutional Investors Adjust Their Positions

Other institutional investors have also made notable changes to their positions in Microsoft. In the second quarter, Christopher J. Hasenberg Inc significantly increased its stake by 169.2%, now owning 70 shares worth $31,000 after adding 44 shares. Quarry LP has entered a new position in Microsoft valued at $45,000, while Innealta Capital LLC acquired a stake worth approximately $75,000.

During the third quarter, Carolina Wealth Advisors LLC raised its holdings in Microsoft by 10.1%, now owning 338 shares valued at $145,000 after purchasing an additional 31 shares. Additionally, Bbjs Financial Advisors LLC saw a 241.4% increase in its holdings, amassing 379 shares worth $169,000 following the acquisition of 268 more shares. Overall, institutional investors control approximately 71.13% of Microsoft's shares.

Analyst Perspectives on Microsoft

Wall Street analysts have been quite bullish about Microsoft, with many issuing buy ratings. BMO Capital Markets recently adjusted its price target from $500.00 to $495.00 while maintaining an “outperform” rating. Similarly, Wedbush reaffirmed its “outperform” rating, setting a target price of $550.00. Citigroup also lowered its price target from $500.00 to $497.00, maintaining a “buy” outlook.

KeyCorp raised its target price from $490.00 to $505.00, rating the company as “overweight.” Royal Bank of Canada reasserted its “outperform” rating with a price target of $500.00. Across the board, analysts show a consensus rating of “Moderate Buy” with an average target price of $508.46 according to MarketBeat.com.

Insider Trading Activities

In recent insider trading news, EVP Christopher David Young sold 7,200 shares on November 12 for about $3,050,352.50, reducing his ownership by 6.51%. Similarly, CMO Takeshi Numoto sold 2,500 shares on December 9, valued at approximately $1,118,525. After the sale, he holds 49,352 shares valued at approximately $22,080,578.33, reflecting a 4.82% decrease in his stake. In total, insiders sold 41,200 shares in the past three months, which amounted to about $17,383,892, with only 0.03% of the company’s stock presently owned by insiders.

Recent Stock Performance

As of the last market session, shares of Microsoft (NASDAQ: MSFT) opened at $436.60. The company boasts a market capitalization of $3.25 trillion with a price-to-earnings (P/E) ratio of 36.02, P/E/G ratio of 2.37, and a beta of 0.90. The stock has fluctuated between a 12-month low of $366.50 and a high of $468.35. Currently, the 50-day simple moving average stands at $427.02 while the 200-day moving average is at $428.42.

Microsoft's latest earnings report, released on October 30, indicated an earnings per share (EPS) of $3.30, surpassing analysts' expectations of $3.10, with revenues hitting $65.59 billion compared to the projected $64.57 billion. The company reported a net margin of 35.61% and a notable return on equity of 34.56%. Year over year, revenue has increased by 16.0%.

Dividend and Stock Buyback Plans

Additionally, Microsoft recently declared a quarterly dividend of $0.83 per share, scheduled for distribution on March 13, with a record date of February 20. This results in an annualized dividend of $3.32, translating to a yield of 0.76% and a payout ratio of 27.39%.

A stock repurchase program was also announced on September 16, allowing Microsoft to buy back up to $60 billion in outstanding shares, reflecting management’s confidence in the company’s value.

Company Overview

Microsoft Corporation develops software, services, devices, and solutions globally. The company’s Productivity and Business Processes segment includes popular products like Office, Microsoft Teams, and Microsoft 365, catering to both personal and business users.

Microsoft, Investment, Portfolio