Balanced Wealth Group LLC Reduces Microsoft Holdings

Balanced Wealth Group LLC has reduced its stake in Microsoft Co. (NASDAQ:MSFT) by 10.7% in the second quarter, as reported in its latest filing with the Securities and Exchange Commission. Following the sale of 256 shares, the institutional investor now holds 2,134 shares of the technology giant. As of the end of the most recent reporting period, Microsoft constituted 0.2% of Balanced Wealth Group LLC's investment portfolio, making it their 28th largest position. The total value of their Microsoft holdings was reported to be approximately $974,000.

Additionally, other hedge funds have also adjusted their positions in Microsoft recently. Gradient Capital Advisors LLC has increased its holdings by 2.8% during the first quarter, bringing its total to 15,272 shares, valued at around $6,425,000, after acquiring 413 additional shares. Red Door Wealth Management LLC also boosted its stake by 5.5%, holding 49,742 shares worth $20,928,000 after adding 2,579 shares. Furthermore, Trilogy Capital Inc. raised its stake by 20.7%, now owning 5,904 shares valued at $2,484,000 due to the purchase of 1,011 extra shares. Sandy Cove Advisors LLC and Deltec Asset Management LLC also increased their positions, owning 12,997 and 71,127 shares respectively, worth $5,468,000 and $29,925,000.

Changes in Analyst Ratings

Recent shifts in analyst ratings for Microsoft shares have been significant. Citigroup has reduced their price target from $500.00 to $497.00 while maintaining a “buy” rating. Conversely, Bank of America has raised its target from $480.00 to $510.00, affirming a “buy” rating as well. Morgan Stanley increased its price target from $506.00 to $548.00, advising an “overweight” rating. KeyCorp also raised its target from $490.00 to $505.00 with an “overweight” rating. Additionally, The Goldman Sachs Group has decreased its target from $515.00 to $500.00 and continues to suggest a “buy” rating. With one analyst recommending a sell, three advising hold, and 26 endorsing a buy, the consensus indicates a “Moderate Buy” rating with an average price target of $503.03 according to MarketBeat.com.

Microsoft's Stock Performance

On Friday, Microsoft shares opened at $425.43. The company holds a market capitalization of $3.16 trillion, a price-to-earnings ratio of 35.10, and a price-to-earnings-growth ratio of 2.16 with a beta of 0.91. The debt-to-equity ratio is noted at 0.15, with a quick ratio and current ratio of 1.29 and 1.30, respectively. Over recent days, the stock has maintained a 50-day moving average of $420.74 and a 200-day moving average of $424.80. Microsoft’s stock demonstrates a 52-week low of $360.36 and a high of $468.35.

Microsoft recently reported its quarterly earnings results, showcasing a notable performance. For the quarter ending October 30th, the company reported earnings per share (EPS) of $3.30, surpassing analysts’ expectations of $3.10 by 20 cents. The return on equity stood at 34.56%, with a net margin of 35.61%. Total revenue for the quarter reached $65.59 billion, exceeding estimates of $64.57 billion, reflecting a growth of 16.0% compared to the prior year’s corresponding quarter. Analysts predict an EPS of 12.95 for the current fiscal year.

Dividend Increase Announcement

Moreover, Microsoft has declared an increase in its quarterly dividend, which is set to be paid on December 12th. Shareholders on record as of November 21st will receive a dividend of $0.83 per share, up from $0.75 previously. This reflects an annualized payout of $3.32, translating to a yield of 0.78%. The company's payout ratio is reported at 27.39%.

In a related update, Microsoft announced a stock buyback plan authorizing the repurchase of $60.00 billion in shares, signifying management's belief that the stock is undervalued. This authorization allows for the repurchase of up to 1.9% of the company’s shares over the coming period.

Insider Trading Activity

Additionally, insider trading has been observed at Microsoft. CEO Satya Nadella sold 14,398 shares on August 23rd at an average price of $417.41, totaling nearly $6 million. Post-transaction, he retains a total of 786,933 shares in the company, valued at approximately $328 million. Likewise, CMO Takeshi Numoto sold 2,500 shares in a transaction on September 10th at an average price of $411.04. Collectively, within the past three months, insiders have sold a total of 190,629 shares valued at over $77 million, with company insiders currently holding about 0.03% of the stock.

Overview of Microsoft Corporation

Microsoft Corporation is a leading technology company that develops and supports a wide array of software, services, devices, and solutions globally. Its offerings include productivity tools, cloud services, and more.

Investment, Stocks, Dividends