August 30, 2023 – &Commerce Bank Increases Stake in Microsoft Co.
&Commerce Bank recently announced a boost in its stake in Microsoft Co. (NASDAQ:MSFT) during the first quarter of this year. According to the bank’s Form 13F filing with the Securities and Exchange Commission (SEC), its investment portfolio now includes 2,090,288 shares of Microsoft. This marks a 0.7% increase, as the bank purchased an additional 13,919 shares during this period. The total value of Commerce Bank’s holdings in Microsoft amounts to $602,630,000.
With this transaction, Microsoft accounts for approximately 4.7% of Commerce Bank’s investment portfolio and stands as its second-largest holding. Such a substantial investment reflects the bank’s confidence in the software giant’s future performance and industry dominance.
A number of equities analysts have also weighed in on Microsoft recently. Deutsche Bank Aktiengesellschaft raised their target price from $340.00 to $380.00, while Royal Bank of Canada increased their target price from $350.00 to $390.00. Mizuho boosted their target price even further, going from $360.00 to $390.00 and giving the stock a “buy” rating.
KeyCorp echoed these positive sentiments by increasing its target price on Microsoft from $340.00 to $400.00 in another research note published earlier this year. However, not all analysts share the same enthusiasm towards the company; Guggenheim reissued a “sell” rating with a price target of $232.00 for Microsoft.
Despite mixed opinions among analysts, Bloomberg.com reports that Microsoft holds a consensus rating of “Moderate Buy.” The average consensus price target for MSFT stock currently stands at $373.68.
As of Wednesday’s market opening on NASDAQ, MSFT shares were valued at $328.41 each, implying a market capitalization of $2.44 trillion for the company. Microsoft maintains a price-to-earnings (P/E) ratio of 33.89 and a price-to-earnings growth (P/E/G) ratio of 2.38, indicating its position as a significant player in the tech industry.
Additionally, Microsoft’s beta stands at 0.90, reflecting its relative stability compared to the broader market’s fluctuations. The company maintains solid financial ratios with a quick ratio of 1.75 and a current ratio of 1.77, highlighting its ability to meet short-term obligations.
Over the past year, Microsoft Co.’s stock performance has seen both lows and highs, reaching a 12-month low of $213.43 and a 12-month high of $366.78 respectively. The fifty-day simple moving average for MSFT is currently at $333.23, while the two-hundred-day simple moving average sits at $307.12.
In summary, &Commerce Bank has increased its stake in Microsoft Co., demonstrating confidence in the software giant’s future prospects amidst positive ratings from various industry analysts. Despite contrasting views regarding its stock price target, Microsoft remains an influential force within the tech sector with solid financial fundamentals and notable market capitalization figures.
Microsoft Corporation
MSFT
Strong Buy
Updated on: 30/08/2023
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Growing Confidence in Microsoft: Institutional Investors, Insiders, and Analysts Show Support
August 30, 2023 – Microsoft (NASDAQ: MSFT) has been experiencing significant activity in its stock from various large investors. Vanguard Group Inc., for instance, increased its stake in Microsoft by 1.0% in the third quarter, now owning over 634 million shares of the software giant’s stock worth an estimated $147 billion. Similarly, State Street Corp raised its stake by 0.7%, currently holding around 295 million shares valued at approximately $68.8 billion.
Price T Rowe Associates Inc. MD also increased its stake by 0.3% during the second quarter, resulting in ownership of nearly 196 million shares worth approximately $50.3 billion. Moneta Group Investment Advisors LLC made a staggering increase of over 112 million percent during the fourth quarter and now owns about 150 million shares with an estimated value of $36 billion.
Furthermore, Geode Capital Management LLC raised its stake by 2.3% during the same period as Moneta Group Investment Advisors LLC and currently holds more than 142 million shares valued at around $34 billion.
This influx of institutional investor interest indicates a growing confidence in Microsoft’s future prospects. With nearly 70% of the company’s stock now owned by institutional investors and hedge funds, it becomes clear that these entities see great potential in Microsoft.
On another note, there have been notable insider transactions within Microsoft as well. Director Teri List sold 1,250 shares on June 2nd at an average price of $334.77 per share, totaling $418,462.50. Following this transaction, List directly owns only 874 shares valued at approximately $292,589.
Insider Bradford L. Smith made a significant sale as well on August 1st when he sold 50,000 shares at an average price of $337.20 per share amounting to a total value nearing $16.9 million. Currently, Smith owns 588,084 shares valued at approximately $198.3 million.
These insider transactions provide insight into the confidence of company insiders in Microsoft’s overall trajectory and financial performance.
A number of equities analysts have also weighed in on Microsoft, providing their target price estimates for the company’s stock. Deutsche Bank Aktiengesellschaft increased its target price from $340 to $380, while Royal Bank of Canada went even further, raising its target price to $390 from $350. Mizuho also expressed optimism by increasing its target price on Microsoft to $390 and maintained a “buy” rating on the stock.
Furthermore, KeyCorp raised its target price to $400 from $340, highlighting strong growth prospects for the tech giant. However, Guggenheim took a more cautious approach by reiterating a “sell” rating and setting a lower price target of $232.
Overall, Bloomberg.com data shows that Microsoft holds a consensus rating of “Moderate Buy” among analysts with an average target price of around $373.68 per share.
Microsoft previously released its earnings results on July 25th, exceeding expectations with reported earnings per share (EPS) of $2.69 for the quarter – surpassing the estimated EPS of $2.55 by $0.14. The company’s revenue during this period amounted to approximately $56.19 billion compared to analyst estimates of around $55.49 billion.
Analysts predict that Microsoft will achieve an EPS of 10.9 for the current fiscal year, showcasing the company’s potential for continued growth and profitability.
In terms of dividends, Microsoft announced plans for a quarterly dividend payment taking place on September 14th to investors who were recorded on August 17th who will receive an amount equivalent to $0.68 per share held. This represents an annualized dividend payout of approximately $2.72 and provides shareholders with a yield of 0.83%.
These recent developments in stockholder activity, analyst assessments, and company performance demonstrate Microsoft’s continued ability to attract investor confidence and its strong position in the market. As we move forward, it will be interesting to see how Microsoft maintains this momentum and continues to drive value for its shareholders.
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