Exchange Capital Management Inc., an institutional investor, has reported a slight increase in its holdings of Microsoft Co. during the first quarter of this year. According to their recent disclosure with the Securities and Exchange Commission (SEC), Exchange Capital Management Inc. now owns 74,953 shares of Microsoft’s stock, which is a 0.5% increase from before. This addition was made by acquiring an additional 390 shares during the mentioned period.
Microsoft constitutes about 4.4% of Exchange Capital Management Inc.’s investment portfolio, positioning it as their largest holding in terms of stock. The value of their Microsoft holdings at the end of the first quarter stood at $21,609,000.
In addition to increasing its holdings, Microsoft recently announced that it will be paying a quarterly dividend on September 14th. Shareholders listed in records as of August 17th will receive a dividend of $0.68 per share. On an annualized basis, this amounts to a $2.72 dividend with a yield of 0.86%. It is notable that Wednesday, August 16th serves as the ex-dividend date for this particular dividend.
Currently, Microsoft’s dividend payout ratio (DPR) stands at 28.07%, reflecting the proportion of earnings allocated towards dividends for shareholders.
As per these recent developments and figures regarding Exchange Capital Management Inc.’s increased holdings and Microsoft’s announcement on dividends, investors and analysts may find valuable insights for their assessments and strategies pertaining to MSFT stock in light of these new details.
Reference:
“Exchange Capital Management Inc increases position in Microsoft Co.” Invest Tribune, August 21,2023
Microsoft Corporation
MSFT
Strong Buy
Updated on: 21/08/2023
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Institutional Investors and Analysts Bullish on Microsoft’s Growth Potential
In recent months, several hedge funds and institutional investors have been actively buying and selling shares of Microsoft (NASDAQ: MSFT), one of the world’s leading software giants. Optas LLC, for example, recently increased its stake in Microsoft by 2.7% during the fourth quarter. With an additional purchase of 651 shares, Optas LLC now owns a total of 25,001 shares worth approximately $5,996,000.
Spinnaker Investment Group LLC also showed interest in Microsoft by increasing its holdings by 2.6% during the first quarter. The group now possesses 11,951 shares valued at around $3,445,000. Similarly, West Branch Capital LLC bought an additional 227 shares of Microsoft stock during the last quarter, raising their stake by 0.5%. In total, West Branch Capital LLC now boasts ownership of 44,418 shares worth approximately $10,652,000.
Quilter Plc and SeaTown Holdings Pte Ltd also demonstrated confidence in Microsoft as they both raised their positions in the company’s stock. Quilter Plc’s ownership increased by 1.4% with the addition of 11,563 shares valued at $202,480,000 during the fourth quarter. SeaTown Holdings Pte Ltd acquired an extra 6,000 shares during the same period and currently owns a total of 200,299 shares worth $48,036 no million.
It is important to note that institutional investors and hedge funds maintain a significant presence within Microsoft’s shareholding structure. As it stands today, these investors collectively own over 72% of the company’s stock.
Various equity analysts have recently appraised MSFT stocks and made recommendations based on their findings. TD Cowen raised their price target on Microsoft from $330 to $390 and gave it an “outperform” rating on July 19th. Raymond James also had a positive outlook, increasing their target price from $320 to $400 and assigning an “outperform” rating on July 24th. Jefferies Financial Group went a step further, raising their price target to $350 and labeling Microsoft as a “buy” on April 26th. The consensus rating of “Moderate Buy” and a consensus price target of $373.68 provided by Bloomberg indicate the overall positive sentiment surrounding Microsoft’s stock.
On Monday, MSFT stocks opened at $316.48. The company’s 50-day moving average is currently recorded at $335.39, while the 200-day moving average stands at $304.12. With a market capitalization of $2.35 trillion, Microsoft maintains a price-to-earnings ratio of 32.66, signaling strong investor confidence in its future growth potential.
Microsoft’s solid financial standing mirrors positive quarterly earnings results released on July 25th. The software giant reported earnings per share (EPS) of $2.69 for the quarter, exceeding analysts’ forecasts by $0.14 per share. This translates to a net margin of 34.15% and a return on equity (ROE) rate of 38.70%. Furthermore, the company generated revenue amounting to $56.19 billion during the quarter, surpassing analysts’ expectations by approximately $700 million.
Compared to the same period last year, Microsoft experienced an impressive 8.3% increase in quarterly revenue, contributing to its bullish outlook for the current fiscal year.
Considering these factors alongside equity analysts’ forecasts, it is estimated that Microsoft Co.’s earnings per share for this year will amount to roughly 10.9.
Overall, with strong institutional support and a consensus of positive ratings from research experts in the field, Microsoft appears well-positioned for continued growth and success in the months ahead
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