Zweig DiMenna Associates LLC Reduces Microsoft Stock Holdings

Zweig DiMenna Associates LLC has reduced its ownership of Microsoft Co. (NASDAQ:MSFT) by 1.7% during the third quarter, as reported in its latest filing with the Securities and Exchange Commission. After selling 1,655 shares, the institutional investor now holds 97,828 shares of the software company. This adjustment means that Microsoft now makes up 4.3% of Zweig DiMenna's investment portfolio, ranking as its fourth-largest holding. Based on their recent SEC filing, the value of Zweig DiMenna’s Microsoft shares is approximately $42.1 million.

Other institutional investors have also made changes to their MSFT holdings. For instance, International Assets Investment Management LLC significantly increased its stake in Microsoft by an impressive 48,526.1% during the third quarter, now owning around 38.5 million shares worth over $16.5 billion after adding approximately 38.4 million shares. Additionally, Swedbank AB acquired a new position in Microsoft valued at about $5.6 billion in the first quarter. Wulff Hansen & CO. witnessed a staggering increase of 47,196.6% in its Microsoft holdings during the second quarter, owning nearly 4.8 million shares valued at around $2.16 billion. Likewise, Assenagon Asset Management S.A. raised its stake in Microsoft by 67.5% in the third quarter, now possessing approximately 6 million shares worth about $2.57 billion. Strategic Financial Concepts LLC also reported a massive growth of 31,648.5% in its Microsoft holdings in the second quarter, currently holding nearly 1.9 million shares worth about $8.37 million. Overall, approximately 71.13% of Microsoft stock is held by institutional investors and hedge funds.

Analyst Adjustments

Recent comments from equity research analysts reflect a variety of price target adjustments for Microsoft shares. Citigroup lowered its price target from $500.00 to $497.00 while maintaining a “buy” rating in a report dated October 23rd. Conversely, Stifel Nicolaus has increased its target from $475.00 to $515.00, also issuing a “buy” rating. Research from Mizuho raised Microsoft’s price target from $480.00 to $510.00, with an “outperform” rating. Morgan Stanley adjusted its target upward from $506.00 to $548.00, while rating the stock as “overweight.” Finally, UBS Group also revised its target from $500.00 to $525.00, reaffirming a “buy” rating. Currently, three analysts recommend holding the stock, while twenty-six have issued buy ratings. Data shows an average rating of “Moderate Buy” and an average target price of $508.46 for Microsoft shares.

Microsoft's Stock Performance

The shares of Microsoft (NASDAQ:MSFT) opened at $436.60. The company boasts a market capitalization of approximately $3.25 trillion and has a price-to-earnings (P/E) ratio of 36.02, along with a P/E/G ratio of 2.37 and a beta of 0.90. Over the past year, Microsoft’s stock has fluctuated, with a 12-month low of $366.50 and a high of $468.35. The company maintains a healthy debt-to-equity ratio of 0.15, with a current ratio of 1.30 and a quick ratio of 1.29. As for moving averages, Microsoft has a 50-day moving average of $427.02 and a 200-day average of $428.32.

Recently, Microsoft posted its earnings results on October 30th, revealing earnings per share (EPS) of $3.30 for the quarter, exceeding the consensus estimate of $3.10 by $0.20. The company reported revenues of $65.59 billion, surpassing expected revenues of $64.57 billion. Microsoft achieved a net margin of 35.61% and a return on equity of 34.56%, with a year-over-year revenue increase of 16.0%. In the same quarter the previous year, Microsoft recorded an EPS of $2.99. Analysts anticipate that Microsoft will post earnings of around $12.93 per share for the current year.

Dividend Information

Microsoft recently declared a quarterly dividend, set to be paid on March 13th. Shareholders of record on February 20th will receive a dividend of $0.83 per share, with the ex-dividend date also set for February 20th. This translates to an annualized dividend of $3.32 and a yield of 0.76%. Microsoft's current payout ratio is 27.39%.

Moreover, the Board of Directors also announced a share repurchase program on September 16th, allowing Microsoft to repurchase up to $60 billion of its own stock. This program is designed to buy back approximately 1.9% of Microsoft shares through the open market, suggesting that the management believes the stock may be undervalued.

Insider Transactions

In related news, Microsoft’s Executive Vice President Judson Althoff sold 25,000 shares of the company stock on November 22nd, priced at an average of $417.00, totaling to $10.43 million. Following this transaction, Althoff retains direct ownership of 117,294 shares, valued at about $48.91 million, marking a 17.57% decrease in his holdings. The sale was officially disclosed in a filing with the Securities and Exchange Commission. Additionally, EVP Christopher David Young also sold 7,200 shares on November 12th at an average price of $423.66, amounting to a total of $3.05 million. Post-sale, Young holds 103,366 shares valued at roughly $43.79 million, representing a 6.51% decrease in his ownership. In the past three months, insiders have collectively sold 41,200 shares valued at approximately $17.38 million, indicating that company insiders own 0.03% of Microsoft’s stock.

Company Overview

Microsoft Corporation develops and supports a variety of software, services, and devices globally. Its Productivity and Business Processes segment provides a range of products and services including Office, Exchange, SharePoint, Microsoft Teams, and various Office 365 offerings, such as security and compliance solutions, Microsoft Viva, and support for Microsoft 365.

Microsoft, Investors, Stock, Earnings, Dividends