Franklin Street Advisors Adjusts Microsoft Stake Amid Market Changes
Franklin Street Advisors Inc. NC has slightly reduced its investment in Microsoft Corporation, as reported by Holdings Channel.com. During the third quarter of 2023, the advisory firm cut its stake by 0.5%, resulting in ownership of 222,393 shares after selling 1,179 shares. Microsoft now represents approximately 6.6% of Franklin Street Advisors’ total portfolio, making it the firm’s second largest position, valued at around $115,189,000.
A number of other institutional investors have also recently adjusted their holdings in Microsoft. For instance, AlphaQuest LLC increased its position by 5.9% in the second quarter, acquiring an additional 19 shares, bringing its total to 342 shares valued at $170,000. Similarly, PMV Capital Advisers LLC raised its stake by 5.9%, now holding 359 shares valued at $178,000, after purchasing an additional 20 shares.
Seek First Inc. grew its investment by 1.5%, owning 1,358 shares worth $675,000 following a purchase of 20 shares. Level Financial Advisors also increased its holdings by 0.8%, now owning 2,680 shares valued at $1,333,000. Red Mountain Financial LLC raised its position by 0.7%, acquiring 20 shares to hold a total of 2,761 shares valued at $1,373,000. As a whole, institutional investors control 71.13% of Microsoft’s stock.
Analyst Ratings and Stock Performance
Recent evaluations from equity research analysts suggest a positive outlook for Microsoft. Evercore ISI established a price target of $640.00, while Melius Research raised its target from $595.00 to $625.00. Rothschild & Co Redburn maintained a “neutral” rating, adjusting its target from $560.00 to $500.00. Baird R W upgraded Microsoft to a “strong-buy” rating. Overall, analysts have given Microsoft an average rating of “Moderate Buy” with a target price of $631.03.
On October 30, 2023, Microsoft shares opened at $487.61, reflecting a market capitalization of $3.62 trillion and a P/E ratio of 34.68. The company reported earnings of $4.13 per share for the latest quarter, exceeding analysts’ expectations of $3.65. Revenue reached $77.67 billion, surpassing the estimated $75.49 billion. Microsoft’s return on equity stood at 32.45%, and the company experienced an 18.4% increase in revenue year-over-year.
Dividends and Insider Activity
Microsoft also recently announced a quarterly dividend, scheduled for payment on March 12, 2024. Shareholders of record on February 19, 2024, will receive a dividend of $0.91 per share, which translates to an annualized dividend of $3.64 and a yield of 0.7%. The dividend payout ratio is currently at 25.89%.
In insider news, Bradford L. Smith, an executive at Microsoft, sold 38,500 shares on November 3, 2023, at an average price of $518.64, totaling approximately $19,967,640. Following this transaction, Smith retains 461,597 shares, valued at around $239,402,668.08. Additionally, CEO Judson Althoff sold 12,750 shares on December 2, 2023, for a total of $6,266,880.
As of now, corporate insiders hold 0.03% of Microsoft’s stock, reflecting a modest insider ownership percentage.
Microsoft Corporation, headquartered in Redmond, Washington, is a leading global technology firm known for a diverse range of software products and services. Founded in 1975 by Bill Gates and Paul Allen, the company has established a significant presence in personal computing, productivity software, cloud infrastructure, and gaming.
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