Franklin Street Advisors Inc. has reduced its stake in Microsoft Corporation by 0.5% during the third quarter of 2023. According to Holdings Channel, the firm now holds 222,393 shares of Microsoft (NASDAQ: MSFT) after selling 1,179 shares during this period. This adjustment positions Microsoft as the second largest investment in Franklin Street’s portfolio, accounting for approximately 6.6% of its total holdings, valued at about $115,189,000.
Several other institutional investors have also made notable changes to their Microsoft positions recently. For instance, AlphaQuest LLC increased its stake by 5.9% in the second quarter, resulting in ownership of 342 shares, worth $170,000. PMV Capital Advisers LLC similarly raised its position by 5.9%, now holding 359 shares valued at $178,000. Seek First Inc. and Level Financial Advisors made gains of 1.5% and 0.8%, respectively, while Red Mountain Financial LLC increased its stake by 0.7%.
Institutional investors collectively own approximately 71.13% of Microsoft’s shares, indicating strong institutional confidence in the company’s future.
Analysts Adjust Their Outlooks
Equities research analysts have been actively updating their evaluations of Microsoft. In a report dated October 30, 2023, Evercore ISI established a price target of $640.00. Melius Research revised its target from $595.00 to $625.00 on September 25, 2023. Rothschild & Co Redburn maintained a “neutral” rating but lowered its target from $560.00 to $500.00, while Baird R W upgraded Microsoft to a “strong-buy” rating on November 14, 2023. Analysts from Sanford C. Bernstein increased their price objective from $637.00 to $645.00, assigning an “outperform” rating.
Currently, among analysts, two have rated Microsoft with a “Strong Buy,” thirty-seven have given a “Buy” rating, and four have issued a “Hold” rating. MarketBeat reports an average rating of “Moderate Buy” for the stock, with a target price of approximately $631.03.
Microsoft’s Financial Performance and Future Projections
Microsoft’s stock opened at $487.61 on October 30, 2023. The company boasts a market capitalization of $3.62 trillion, with a price-to-earnings ratio of 34.68. Its two-hundred-day moving average stands at $503.42, and the stock has fluctuated between a twelve-month low of $344.79 and a high of $555.45.
In its latest quarterly earnings report released on October 29, 2023, Microsoft announced earnings per share (EPS) of $4.13, exceeding analysts’ estimates of $3.65 by $0.48. The company’s revenue reached $77.67 billion, outperforming projections of $75.49 billion. Microsoft’s year-over-year revenue growth stands at 18.4%, up from $3.30 EPS in the same quarter last year. Analysts anticipate an EPS of $13.08 for the current fiscal year.
Additionally, Microsoft has announced a quarterly dividend of $0.91 per share, payable on March 12, 2024, for stockholders of record as of February 19, 2024. This reflects an annualized dividend of $3.64 and a yield of 0.7%.
In terms of insider activity, Bradford L. Smith, an insider, sold 38,500 shares on November 3, 2023, for approximately $19,967,640. After the sale, he retained 461,597 shares, valued at about $239,402,668.08. CEO Judson Althoff also sold 12,750 shares on December 2, 2023, for roughly $6,266,880.
As Microsoft continues to adapt to market dynamics, investors and analysts alike remain attentive to its strategic moves and overall performance.
