World Equity Group Inc. Decreases Stake in Microsoft Co. by 20%

World Equity Group Inc. has cut its investment in Microsoft Co. (NASDAQ:MSFT) by 20% during the third quarter, according to recent reports. After selling 7,835 shares, the institutional investor now holds 31,341 shares of the technology giant. Microsoft now represents about 4.9% of World Equity Group's portfolio, making it their second-largest investment. As of the latest filing with the SEC, the value of their Microsoft holdings is around $13.49 million.

Other institutional investors have also adjusted their stakes in Microsoft recently. For instance, Net Worth Advisory Group made a new investment worth $2.645 million in the third quarter. Oak Ridge Investments LLC increased its shareholding in Microsoft by 7.6% during the same period, acquiring an additional 18,544 shares for a total of 263,534 shares worth approximately $113.4 million. Similarly, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its Microsoft position by 1.6%, now owning 1,975,200 shares valued at $882.8 million after an additional purchase of 31,401 shares. Jacobs & Co. CA also increased its stake by 0.9%, reaching 96,021 shares valued at about $41.3 million after acquiring 880 more shares. Lastly, Focus Financial Network Inc. added a 2.0% increase, now holding 76,296 shares valued at approximately $32.83 million. Currently, 71.13% of Microsoft stock is owned by institutional investors and hedge funds.

Microsoft Share Price Increases

On Monday, shares of Microsoft opened at $423.35. The company has a quick ratio of 1.29, a current ratio of 1.30, and a debt-to-equity ratio of 0.15. The stock reached a twelve-month low of $366.50 and a high of $468.35. Microsoft boasts a market capitalization of $3.15 trillion, with a price-to-earnings ratio of 34.93 and a P/E/G ratio of 2.37. The fifty-day simple moving average stands at $428.62, while the 200-day simple moving average is at $428.08.

Microsoft recently published its quarterly earnings on October 30, announcing an earnings-per-share (EPS) of $3.30, surpassing analysts' expectations of $3.10 by $0.20. The software company's net margin was 35.61%, with a return on equity of 34.56%. Revenue for the quarter was reported at $65.59 billion, exceeding analyst predictions of $64.57 billion. This reflects a year-over-year increase of 16% in revenue. Analysts forecast that Microsoft will report an EPS of 12.93 for the current fiscal year.

Stock Buyback Initiative Announced

On September 16, Microsoft’s Board of Directors announced a stock buyback program allowing for the repurchase of up to $60 billion worth of shares. This plan permits the company to buy back approximately 1.9% of its own stock in open market transactions, which typically indicates that the management views its shares as undervalued.

Dividend Payment Details

Additionally, Microsoft has declared a quarterly dividend that will be paid on March 13. Shareholders on record by February 20 will receive $0.83 per share, translating to an annualized dividend of $3.32 and a yield of 0.78%. The ex-dividend date is also set for February 20, and the company’s dividend payout ratio currently stands at 27.39%.

Insider Transactions at Microsoft

In related updates, executive vice president Judson Althoff sold 25,000 shares of Microsoft on November 22, at an average price of $417.00, totaling approximately $10.43 million. Post-sale, he retains a shareholding of 117,294 shares, valued at around $48.91 million. Another executive, Christopher David Young, sold 7,200 shares on November 12 for an average price of $423.66, amounting to about $3.05 million. After this transaction, he holds 103,366 shares worth roughly $43.79 million. Over the last three months, insiders have sold a cumulative 41,200 shares valued at about $17.38 million, with company insiders currently owning only 0.03% of the stock.

Analyst Opinions on Microsoft

Several analysts recently revisited their coverage of Microsoft. Sanford C. Bernstein cut their price target from $501.00 to $500.00, maintaining an “outperform” rating. UBS Group raised their price target to $525.00, issuing a ‘buy’ rating. Citigroup revised their price objective downward from $500.00 to $497.00 while maintaining a ‘buy’ rating. Wells Fargo restated their ‘buy’ recommendation, and Royal Bank of Canada issued an ‘outperform’ rating with a price target of $500.00. Presently, three analysts have assigned a ‘hold’ rating, compared to twenty-seven recommending a ‘buy.’ Overall, the consensus rating for Microsoft stands as a “Moderate Buy” with an average target price set at $509.90.

Overview of Microsoft Corporation

Microsoft Corporation is a leading developer and supporter of software, services, devices, and solutions worldwide. The company’s segments cover a wide range of productivity and business processes, such as Office, Exchange, SharePoint, Microsoft Teams, and Azure cloud services, among others.

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