First Interstate Bank Reduces Microsoft Holdings

First Interstate Bank has reduced its stake in Microsoft Corporation (NASDAQ: MSFT) by 1.3% during the second quarter, as per the latest report filed with the Securities and Exchange Commission (SEC). The bank currently holds 47,718 shares of Microsoft's stock after selling 639 shares within the quarter. Microsoft now constitutes about 1.4% of First Interstate Bank's overall investments, positioning it as the bank's 15th largest asset. The total value of the bank's Microsoft shares stood at $21,328,000 according to the recent SEC filing.

Meanwhile, various institutional investors and hedge funds have also made adjustments to their positions in Microsoft in recent times. Christopher J. Hasenberg Inc has significantly increased its Microsoft holdings by 169.2% in the second quarter, now owning 70 shares valued at $31,000 after acquiring an additional 44 shares. Similarly, Richardson Capital Management LLC raised its position in Microsoft by an incredible 1,290.0% during the first quarter, currently holding 139 shares worth $59,000 after adding 129 shares. Innealta Capital LLC has also purchased a new position in Microsoft valued at $75,000 this quarter. Furthermore, Bellevue Group AG amplified its Microsoft share position by 47.5% during the first quarter, obtaining 180 shares valued at $76,000 after a purchase of 58 additional shares. Horizon Financial Services LLC also acquired a new Microsoft stake during the first quarter worth $80,000. As it stands, institutional investors own approximately 71.13% of Microsoft's total shares.

Updates from Analysts

Several brokerage firms have shared their views on Microsoft shares recently. Wells Fargo & Company reiterated a “buy” rating for Microsoft on October 18th. BMO Capital Markets boosted its price target for Microsoft from $465.00 to $500.00, maintaining an “outperform” rating on July 12th. On July 18th, TD Cowen increased its price target from $470.00 to $495.00, also assigning a “buy” recommendation. Piper Sandler decreased its price target from $485.00 to $470.00 with an “overweight” rating noted on October 18th. Truist Financial reaffirmed a “buy” rating with a price target set at $600.00 on October 8th. In total, one analyst has rated Microsoft with a sell status, three have recommended holding the stock, and 28 analysts have indicated a buy rating. According to data from MarketBeat.com, Microsoft holds a consensus rating of “Moderate Buy” alongside a consensus price target of $495.94.

Stock Performance of Microsoft

Microsoft's stock opened at $428.15 on Friday. The company recorded a 52-week low of $326.94 and a 52-week high of $468.35. The firm’s 50-day moving average is currently $420.40 while the 200-day moving average stands at $424.56. Microsoft maintains a quick ratio of 1.27, a current ratio of 1.27, and a debt-to-equity ratio of 0.16. With a market capitalization of $3.18 trillion, the stock has a PE ratio of 37.07, a price-to-earnings-growth ratio of 2.24, and a beta of 0.90.

The latest quarterly earnings report from Microsoft was released on July 30th, revealing an earnings per share of $2.95 for the quarter, surpassing analysts' expectations of $2.90 by $0.05. The total revenue for the quarter was $64.73 billion, which was also above analyst forecasts of $64.38 billion. The company showcased a return on equity of 35.95% and a net margin of 35.96%, with revenue growth of 15.2% compared to the same quarter in the previous year. Last year, Microsoft posted an EPS of $2.69. Analysts are projecting that Microsoft will achieve earnings of $13.02 per share for the current financial year.

Dividend Announcement

Microsoft has recently announced an upcoming quarterly dividend, scheduled for payment on December 12th. Shareholders who are on record as of November 21st will receive a dividend of $0.83 per share. The ex-dividend date is also set for November 21st, which translates to an annualized dividend of $3.32, yielding 0.78%. This indicates a notable increase from Microsoft's previous quarterly dividend of $0.75, and the current dividend payout ratio is 28.74%.

Additionally, Microsoft’s Board of Directors has also initiated a share repurchase plan effective September 16th, authorizing the buyback of up to $60.00 billion in outstanding shares. This strategy allows the company to repurchase up to 1.9% of its own stock through purchases in the open market, generally signaling that the company believes its shares are undervalued.

Insider Transactions at Microsoft

In other news regarding Microsoft, chief marketing officer Takeshi Numoto sold 2,500 shares of the company on September 10th at an average price of $411.04, bringing the total sale value to $1,027,600. After this transaction, he holds 50,000 shares valued at around $20,552,000, reflecting a 0.00% decline in ownership. The details of this transaction were disclosed in a legal filing with the SEC. Another insider, Bradford L. Smith, also sold 40,000 shares on September 9th at an average price of $402.59, amounting to $16,103,600. Post-transaction, he owns 544,847 shares valued at approximately $219,349,953.73, which indicates another 0.00% decrease in ownership. In the past three months, insiders have sold a total of 190,629 shares worth $77,916,485, while 0.03% of the stock remains owned by them.

Overview of Microsoft

Microsoft Corporation is a leading company engaged in the development and support of software, services, devices, and solutions on a global scale. Its Productivity and Business Processes segment encompasses a variety of offerings, including Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Microsoft 365 Copilot, along with consumer services like Microsoft 365 subscriptions and other Office services.

Microsoft, Investors, Finance