Davidson Investment Advisors Acquires Additional Shares of Microsoft

Davidson Investment Advisors has boosted its holdings in Microsoft Corporation (NASDAQ:MSFT) by 0.6% as per reports from Holdings Channel.com. The investment firm now owns 207,279 shares of the tech giant after acquiring an extra 1,213 shares during the second quarter of the year. This means that Microsoft's stock constitutes approximately 4.8% of Davidson's overall investment portfolio, making it their fourth largest position. By the end of the latest reporting period, Davidson's holdings in Microsoft were valued at around $92,643,000.

Other institutional investors and hedge funds have also made movements regarding Microsoft shares. For instance, Warren Street Wealth Advisors LLC increased its stake in the company by 16.5% during the fourth quarter, bringing its total to 6,767 shares worth $2,545,000 after adding 956 new shares. Additionally, Czech National Bank raised its stake by 0.4% in the first quarter, now possessing 1,307,487 shares valued at about $550,086,000 after buying 5,253 additional shares. True Link Financial Advisors LLC expanded its stake significantly by 296.7% during the same period. They now hold 3,027 shares valued at $1,274,000 after purchasing an extra 2,264 shares. United Advisor Group LLC acquired a new position in Microsoft during the fourth quarter, investing approximately $9,538,000. Meanwhile, AMG National Trust Bank raised their holdings by 19% in the second quarter, now owning 81,502 shares valued at $36,427,000 after buying 12,994 additional shares. In total, about 71.13% of Microsoft shares are currently owned by institutional investors and hedge funds.

Microsoft Stock Insights

On the trading day, shares of Microsoft opened at $416.32. The company demonstrates solid financial metrics with a current ratio of 1.27, quick ratio of 1.27, and a low debt-to-equity ratio of 0.16. Microsoft boasts a market capitalization of $3.09 trillion, with a P/E ratio of 35.25 and a PEG ratio of 2.22. Over the past year, the stock has fluctuated between a low of $324.39 and a high of $468.35.

In its latest earnings announcement on July 30th, Microsoft reported earnings per share (EPS) of $2.95, exceeding analysts' expectations of $2.90 by a margin of $0.05. The company generated revenue of $64.73 billion for the quarter, surpassing projections of $64.38 billion. With a net margin of 35.96% and a return on equity of 35.95%, Microsoft’s quarterly revenue showed a significant increase of 15.2% from the prior year. Analysts currently forecast that Microsoft will post an EPS of 13.02 for the ongoing fiscal year.

Dividend Announcement

Microsoft has also revealed plans for a quarterly dividend, scheduled for payment on December 12th. Shareholders recorded on November 21st will receive $0.83 per share, up from the previous dividend of $0.75. This equates to an annualized dividend of $3.32 and represents a yield of 0.80%. Currently, Microsoft’s payout ratio stands at 25.40%.

Insider Trading Activity

In recent insider trading activity, Bradford L. Smith, an insider at Microsoft, sold 40,000 shares on September 9th, for a total of approximately $16,103,600 at an average price of $402.59 per share. Post-transaction, Smith holds 544,847 shares valued at roughly $219,349,953.73, reflecting no significant change in ownership percentage. Additionally, CMO Takeshi Numoto sold 2,500 shares on September 10th, fetching over $1 million, after which he retains 50,000 shares worth $20,552,000. In total, insiders have sold approximately 190,629 shares worth about $77,916,485 over the past quarter, with insiders owning around 0.03% of the company's stock.

Market Analyst Opinions

In the world of market analysts, several brokerage firms have recently assessed Microsoft shares. DA Davidson downgraded Microsoft from a “buy” to a “neutral” rating, setting a price target of $475.00. BMO Capital Markets raised their price target from $465.00 to $500.00 and rated the stock as “outperform.” Meanwhile, Goldman Sachs lowered its price target from $515.00 to $500.00, maintaining a “buy” rating. Similarly, Citigroup decreased its price objective from $520.00 to $500.00 while keeping a “buy” stance. TD Cowen also raised their price objective from $470.00 to $495.00 with a “buy” rating. Presently, there are 30 buy ratings and three hold ratings among analysts, reflecting a consensus of “Moderate Buy” based on an average price target of $493.47.

Overview of Microsoft Corporation

Microsoft Corporation is a global leader in developing and supporting software, services, devices, and solutions. Its Productivity and Business Processes segment offers various services, including Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Microsoft 365 Copilot, among others.

Davidson, Microsoft, Shares