Davidson Investment Advisors Purchases 1,213 Shares of Microsoft Co. (NASDAQ:MSFT)

Davidson Investment Advisors has increased its holdings in Microsoft Co. (NASDAQ:MSFT) by 0.6% during the second quarter of this year, according to reports from Holdings Channel.com. The firm now owns a total of 207,279 shares of Microsoft after acquiring an additional 1,213 shares during the quarter. This investment represents approximately 4.8% of Davidson Investment Advisors’ overall portfolio, making Microsoft its fourth largest investment. At the conclusion of the most recent reporting period, these Microsoft shares were valued at around $92,643,000.

In addition to Davidson Investment Advisors, several other institutional investors have also recently adjusted their positions in Microsoft. For instance, Warren Street Wealth Advisors LLC increased its stake by 16.5% in the fourth quarter, now holding 6,767 shares worth approximately $2,545,000 after acquiring an extra 956 shares. Similarly, Czech National Bank raised its stake by 0.4% in the first quarter, bringing its total holdings to 1,307,487 shares valued at about $550,086,000 after purchasing an additional 5,253 shares. True Link Financial Advisors LLC significantly boosted its holdings by 296.7% during the same quarter, now owning 3,027 shares worth $1,274,000 after acquiring 2,264 extra shares. United Advisor Group LLC has also entered the scene with a new purchase in the fourth quarter valued at $9,538,000, while AMG National Trust Bank increased its stake by 19.0% during the second quarter, now owning 81,502 shares worth about $36,427,000 after purchasing an additional 12,994 shares. Currently, institutional investors and hedge funds collectively own around 71.13% of Microsoft’s stock.

Performance of Microsoft Stock

As of the latest trading session, Microsoft shares opened at $416.32. The company maintains a current ratio of 1.27, a quick ratio of 1.27, and a debt-to-equity ratio of 0.16. With a market capitalization of $3.09 trillion, Microsoft has a price-to-earnings (P/E) ratio of 35.25, a price/earnings-to-growth (PEG) ratio of 2.22, and a beta value of 0.90. The stock's 50-day moving average is $417.92, while the 200-day moving average is $424.63. Over the past year, Microsoft’s stock has seen a low of $324.39 and a high of $468.35.

On July 30, Microsoft announced its latest earnings results, reporting earnings per share (EPS) of $2.95 for the quarter, beating analysts’ estimates of $2.90 by $0.05. The company achieved revenue of $64.73 billion in the quarter, surpassing expectations of $64.38 billion. Microsoft had a noteworthy net margin of 35.96% and a return on equity of 35.95%, with quarterly revenue increasing by 15.2% compared to the same quarter last year. Analysts are projecting Microsoft to post an EPS of 13.02 for the current fiscal year.

Share Repurchase Plan and Dividend Increase

On September 16, Microsoft’s board of directors initiated a new share repurchase program allowing for the buyback of up to $60.00 billion in shares. This program enables the company to repurchase approximately 1.9% of its shares through open market purchases, a move typically viewed as a sign that the company's board believes shares are undervalued.

Furthermore, Microsoft recently announced an increase in its quarterly dividend, set to be distributed on December 12. Shareholders on record as of November 21 will receive a dividend of $0.83 per share, marking a rise from the previous $0.75 per share. This translates to an annual dividend of $3.32, resulting in a yield of 0.80% and a payout ratio of 25.40%.

Insider Trading Activity

Recent insider transactions at Microsoft have also drawn attention. Notably, insider Bradford L. Smith sold 40,000 shares of Microsoft stock on September 9 at an average price of $402.59, totaling $16,103,600. Post-transaction, Smith retains ownership of 544,847 shares, valued at approximately $219,349,953.73. The sale was reported in a legal filing with the SEC. Additionally, CMO Takeshi Numoto sold 2,500 shares on September 10 at an average price of $411.04, resulting in a transaction valued at $1,027,600. Following this, Numoto owns 50,000 shares worth about $20,552,000. In the past quarter, insiders have sold a total of 190,629 shares of Microsoft stock, with insider ownership standing at approximately 0.03%.

Wall Street Analyst Perspectives

Microsoft continues to attract attention from analysts. Recently, DA Davidson downgraded its rating for the stock from ‘buy’ to ‘neutral’ while setting a price target of $475.00. BMO Capital Markets, however, increased its target from $465.00 to $500.00, assigning an ‘outperform’ rating. Goldman Sachs adjusted its target down from $515.00 to $500.00 while maintaining a ‘buy’ rating on the stock. Citigroup reduced its target from $520.00 to $500.00, also issuing a ‘buy’ rating, and TD Cowen raised theirs from $470.00 to $495.00, keeping a ‘buy’ rating. Overall, the consensus rating from analysts suggests a ‘Moderate Buy’ with an average price target of approximately $493.47, reflecting strong confidence in Microsoft’s performance.

Overview of Microsoft

(Free Report)

Microsoft Corporation is a global leader in developing software, services, devices, and solutions. Its major segments include Productivity and Business Processes, which comprises popular services like Office, Exchange, SharePoint, Microsoft Teams, as well as Office 365 security and compliance solutions.

Davidson, Investment, Microsoft