Northwest Capital Management Inc has reduced its stake in Microsoft Corporation (NASDAQ: MSFT) by 13.3% as of the second quarter of 2023. This decision follows the sale of 4,572 shares, leaving the firm with a total of 29,822 shares of the software giant. Microsoft now constitutes approximately 8.0% of Northwest Capital Management’s investment portfolio, making it the firm’s largest holding. At the end of the recent quarter, Northwest’s holdings in Microsoft were valued at about $14,834,000.
Several other institutional investors have also adjusted their positions in Microsoft recently. Newton One Investments LLC increased its stake by 66.7% in the first quarter, bringing its total holdings to 75 shares valued at $28,000 after acquiring an additional 30 shares. Bulwark Capital Corp established a new position in Microsoft during the second quarter, valued at approximately $32,000.
Westend Capital Management LLC significantly boosted its stake by 386.7% during the same period, now owning 73 shares valued at $36,000 following the purchase of 58 additional shares. Moreover, ROSS JOHNSON & Associates LLC raised its position by 155.7% in the first quarter, acquiring 156 shares valued at approximately $59,000. Notably, hedge funds and other institutional investors collectively own 71.13% of Microsoft’s stock.
Analysts Remain Positive on Microsoft
Microsoft has recently attracted attention from analysts, with several reports indicating strong support for the stock. On October 30, 2023, UBS Group reaffirmed a “buy” rating and set a price objective of $650.00 per share. Similarly, DZ Bank reiterated a buy rating, while Barclays maintained an “overweight” rating with a target price of $625.00. Wedbush also reaffirmed an “outperform” rating, setting a target price of $625.00 for the stock.
The consensus rating for Microsoft stock remains a “Buy,” with 38 analysts assigning a Buy rating and one holding a Hold rating. According to MarketBeat.com, the average price target stands at $634.47.
On October 29, Microsoft reported its earnings for the quarter, revealing earnings per share (EPS) of $4.13, surpassing the consensus estimate of $3.65 by $0.48. The firm recorded a revenue of $77.67 billion, exceeding analysts’ expectations of $75.49 billion. This marks an 18.4% increase in revenue year-over-year.
Stock Performance and Dividend Announcement
As of the latest trading session, Microsoft stock opened at $506.00. The company holds a market capitalization of $3.76 trillion and has a price-to-earnings (P/E) ratio of 35.99. Over the past twelve months, the stock has experienced a low of $344.79 and a high of $555.45.
Microsoft recently announced a quarterly dividend of $0.91 per share, marking an increase from the previous dividend of $0.83. This dividend will be paid on December 11, 2023, to shareholders recorded on November 20, 2023. The annualized dividend amounts to $3.64, reflecting a dividend yield of 0.7% and a payout ratio of 25.89%.
In addition to these developments, there has been notable insider activity. On September 3, 2023, CEO Satya Nadella sold 149,205 shares at an average price of $504.78, totaling approximately $75.3 million. Post-sale, Nadella retained 790,852 shares valued at around $399.2 million. Additionally, insider Bradford L. Smith sold 38,500 shares on November 3, 2023, for about $19.97 million, resulting in a 7.70% decrease in his ownership.
Overall, Microsoft continues to demonstrate strong performance and investor interest, maintaining its position as a key player in the technology sector.
