Franklin Street Advisors Inc. has decreased its holdings in Microsoft Corporation by 0.5% during the third quarter of 2023, according to data from Holdings Channel. The investment firm now owns 222,393 shares of the software giant, following the sale of 1,179 shares over the quarter. With Microsoft comprising approximately 6.6% of Franklin Street Advisors’ total portfolio, it remains the firm’s second-largest investment, valued at around $115,189,000.
Several other institutional investors have also adjusted their positions in Microsoft recently. For instance, AlphaQuest LLC increased its stake by 5.9% in the second quarter, acquiring 19 additional shares, bringing its total to 342 shares valued at $170,000. Similarly, PMV Capital Advisers LLC raised its position by 5.9%, now holding 359 shares valued at $178,000 after purchasing 20 more shares. Seek First Inc. enhanced its holdings by 1.5%, owning 1,358 shares worth $675,000 after a 20-share acquisition. Level Financial Advisors and Red Mountain Financial LLC also reported increases of 0.8% and 0.7%, respectively, solidifying the trend of institutional investment in Microsoft.
Institutional investors collectively own 71.13% of Microsoft’s stock, reflecting strong confidence in the company’s long-term prospects.
Analyst Ratings and Stock Performance
Recent analyst reports indicate a generally positive outlook for Microsoft, with various price target adjustments made. Evercore ISI set a price target of $640.00 on October 30, while Melius Research increased its target from $595.00 to $625.00. Rothschild & Co Redburn maintained a “neutral” rating but lowered its price target from $560.00 to $500.00. Conversely, Baird R W upgraded Microsoft to a “strong-buy” rating, and Sanford C. Bernstein raised its target from $637.00 to $645.00.
As of the latest trading session, Microsoft shares opened at $487.61. The company boasts a market capitalization of $3.62 trillion, a P/E ratio of 34.68, and a PEG ratio of 1.82. The stock has seen a twelve-month low of $344.79 and a high of $555.45. Microsoft’s strong performance is underscored by its latest quarterly earnings report, where the company announced an earnings per share (EPS) of $4.13, exceeding analyst expectations of $3.65.
During the quarter, Microsoft generated revenue of $77.67 billion, significantly surpassing estimates of $75.49 billion. The company reported a year-over-year revenue increase of 18.4% and achieved a return on equity of 32.45% with a net margin of 35.71%.
Dividend Announcement and Insider Activity
Microsoft has also announced a quarterly dividend of $0.91 per share, scheduled for distribution on March 12, 2024, to shareholders of record as of February 19, 2024. This translates to an annual dividend of $3.64 and a yield of 0.7%, with a dividend payout ratio of 25.89%.
In insider trading news, Bradford L. Smith, Microsoft’s President, sold 38,500 shares on November 3 at an average price of $518.64, totaling approximately $19,967,640. Following this transaction, he retains ownership of 461,597 shares valued at around $239,402,668.08. Additionally, CEO Judson Althoff sold 12,750 shares on December 2 at an average price of $491.52, amounting to $6,266,880. These sales represent declines of 7.70% and 8.97% in their respective holdings.
Overall, the changes in Franklin Street Advisors’ position, ongoing institutional investment trends, and solid performance indicators suggest a robust outlook for Microsoft as it navigates the competitive technology landscape.
