Davidson Investment Advisors Increases Microsoft Holdings

Davidson Investment Advisors has recently boosted its investment in Microsoft Corporation (NASDAQ:MSFT) by acquiring an additional 1,213 shares during the second quarter. This purchase has led to a total holding of 207,279 shares, representing a 0.6% increase in their stake in the technology giant. Currently, Microsoft makes up about 4.8% of Davidson Investment Advisors' investment portfolio, solidifying its position as the fourth-largest investment for the firm. As of the latest reporting period, the value of Davidson's Microsoft shares stands at approximately $92.6 million.

In addition to Davidson, other institutional investors have also shown interest in Microsoft shares recently. Warren Street Wealth Advisors LLC increased its stake by 16.5% in the last quarter, bringing its total to 6,767 shares valued at around $2.5 million. Similarly, Czech National Bank raised its interest by 0.4% to hold over 1.3 million shares worth about $550 million. True Link Financial Advisors notably expanded its investment by 296.7%, owning 3,027 shares now valued at approximately $1.3 million. Meanwhile, United Advisor Group LLC entered the Microsoft investment space by acquiring shares worth $9.5 million in the fourth quarter of the previous fiscal year. AMG National Trust Bank also raised its stake by 19% in the latest quarter, purchasing over 12,900 shares, which are now valued at roughly $36.4 million. Notably, institutional investors collectively own around 71.13% of Microsoft shares.

Recent Stock Performance

Microsoft's stock opened at $416.32 on a recent trading day. The company demonstrates a current ratio and quick ratio of 1.27, alongside a low debt-to-equity ratio of 0.16. The total market capitalization of Microsoft is approximately $3.09 trillion with a price-to-earnings (P/E) ratio of 35.25 and a beta of 0.90. Over the past 50 days, the stock has maintained a moving average of $417.92, while the 200-day moving average is approximately $424.63. The stock has traded within a 12-month range, hitting a low of $324.39 and a high of $468.35.

On July 30, Microsoft reported its earnings, announcing earnings per share (EPS) of $2.95, which surpassed analyst expectations of $2.90 by $0.05. The reported revenue for the quarter was $64.73 billion, slightly higher than the anticipated $64.38 billion, marking a 15.2% increase compared to the same quarter last year. For the current fiscal year, analysts predict an EPS of around $13.02 for Microsoft.

Share Repurchase Plan and Dividend Increase

On September 16, Microsoft’s board announced a significant share repurchase plan authorizing the company to buy back up to $60 billion in shares, equivalent to approximately 1.9% of its outstanding stock. This decision typically indicates that the management perceives its shares to be undervalued.

Microsoft also disclosed plans for a quarterly dividend payment scheduled for December 12. Shareholders on record by November 21 will receive a dividend of $0.83 per share, marking an increase from the previous quarterly dividend of $0.75, which reflects an annualized dividend yield of 0.80%. Currently, the company maintains a payout ratio of 25.40%.

Insider Activities and Analyst Ratings

Recent insider trading activities have also caught attention. Bradford L. Smith, an insider at Microsoft, sold 40,000 shares on September 9 at an average price of $402.59, totaling approximately $16.1 million, which did not significantly alter his remaining stake. Additionally, CMO Takeshi Numoto sold 2,500 shares for about $1.03 million, maintaining significant ownership in the company. Over the last quarter, insiders collectively sold about 190,629 shares valued at nearly $78 million, with insiders retaining a minimal ownership stake of 0.03% in Microsoft.

Regarding analyst ratings, several brokerages have provided recent updates on Microsoft shares. DA Davidson downgraded its rating from “buy” to “neutral,” placing a price target at $475. BMO Capital Markets increased its price target from $465 to $500, issuing an “outperform” rating. Goldman Sachs and Citigroup also adjusted their targets to $500, maintaining their “buy” recommendations. Overall, the consensus among analysts leans toward a “Moderate Buy” rating, with an average price target of $493.47 based on broad support among 30 analysts advocating for a buy position on the stock.

About Microsoft Corporation

Microsoft Corporation is a global leader in developing and supporting various software, services, devices, and solutions. Its products range from popular business applications like Office, Exchange, and Microsoft Teams to consumer services and cloud solutions.

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