WASHINGTON TRUST Co, a financial institution based in the United States, has significantly reduced its stake in Microsoft Co. (NASDAQ:MSFT) during the first quarter of this year, according to its recent filing with the Securities and Exchange Commission (SEC). The firm sold 232,641 shares of the software giant’s stock, resulting in a decrease of 99.9% in its ownership. As a result, WASHINGTON TRUST Co now possesses only 231 shares of Microsoft stock.
The reduction in Microsoft holdings by WASHINGTON TRUST Co has led to some changes in the company’s investment portfolio. Previously, Microsoft accounted for approximately 3.0% of WASHINGTON TRUST Co’s portfolio, making it their fourth largest position. However, as a result of selling such a substantial number of shares, the stock has now dropped down in ranking.
At the end of the reporting period, the remaining Microsoft shares held by WASHINGTON TRUST Co were valued at $66,000. This amount reflects the market value of the shares at that time and highlights the diminished presence Microsoft holds within WASHINGTON TRUST Co’s investment holdings.
In other recent news related to Microsoft Co., they have announced an upcoming quarterly dividend payment scheduled for Thursday, September 14th. Shareholders who were registered as investors on Thursday, August 17th will receive a dividend payment totaling $0.68 per share they own.
It is worth mentioning that to be eligible for this dividend payout from Microsoft stock, one must have owned shares before Wednesday, August 16th – known as the ex-dividend date. Considering this latest dividend announcement and comparing it with previous payouts from Microsoft, we can calculate that shareholders receive an annualized dividend equaling $2.72 per share. Additionally, with its current stock price and projected annual dividends paid out over the course of a year, Microsoft offers investors a yield of roughly 0.84%.
It is essential to note that Microsoft’s dividend payout ratio (DPR) currently stands at 28.07%. The DPR represents the percentage of a company’s earnings that it distributes to shareholders in the form of dividends. The figure implies that Microsoft allocates just over a quarter of its earnings towards dividends.
The recent reduction in ownership by WASHINGTON TRUST Co suggests a change in their investment strategy regarding Microsoft Co. However, it is important to remember that investment decisions are influenced by various factors, and each organization must evaluate the financial market conditions and make choices based on their own analysis.
Investors and analysts alike will continue to observe developments within WASHINGTON TRUST Co’s holdings as well as analyze future dividend announcements from Microsoft Co. These factors will help shape a more comprehensive understanding of both the company’s overall performance and its appeal to investors seeking long-term growth potential or dividend income.
Microsoft Corporation
MSFT
Strong Buy
Updated on: 28/08/2023
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Hedge Funds and Analysts Show Confidence in Microsoft’s Growth Potential
In recent months, numerous hedge funds and institutional investors have been making changes to their positions in Microsoft (NASDAQ:MSFT). Monumental Financial Group Inc. acquired a new stake in the technology giant during the first quarter of this year, amounting to around $28,000. PayPay Securities Corp also purchased a new stake in Microsoft, this time during the fourth quarter of last year, worth approximately $54,000. Another notable move came from Gleason Group Inc., which increased its stake in Microsoft by 111.7% during the first quarter. Currently, Gleason Group Inc. holds 199 shares of Microsoft stock valued at $57,000 after buying an additional 105 shares during the last quarter.
Syverson Strege & Co also joined the list of institutional investors that increased their position in Microsoft. During the first quarter, they raised their stake by 157%, now owning 203 shares worth $58,000 after purchasing an additional 124 shares. Finally, VitalStone Financial LLC made a new investment in Microsoft during the fourth quarter of last year for approximately $79,000.
These moves indicate that hedge funds and other institutional investors currently hold a massive 72.20% ownership of Microsoft stock. Such significant investments demonstrate confidence and optimism regarding the future prospects and potential growth of the software giant.
Numerous equities research analysts have also given their opinions on MSFT stock recently. Wells Fargo & Company boosted its target price for Microsoft from $380 to $400 and assigned an “overweight” rating to the stock. Similarly, Argus raised its price objective from $371 to $390 and labeled it as a “buy.” Mizuho shared a similar sentiment by increasing their price objective from $360 to $390 and assigning a “buy” rating.
Barclays was even more bullish on Microsoft’s potential by raising its price objective significantly from $336 to $425 along with an “overweight” rating. On the other hand, Citigroup reduced its price objective from $425 to $420. Overall, most analysts have issued a positive outlook for Microsoft, with one even offering a “sell” rating, three giving a “hold” rating, and thirty-three issuing a “buy” rating. According to Bloomberg’s data, Microsoft has obtained a consensus rating of “Moderate Buy” along with an average price target of $373.68.
On August 27th, shares of NASDAQ:MSFT opened at $322.98. It’s worth noting that the stock’s fifty-day simple moving average is $333.79 and its 200-day simple moving average stands at $305.96. Over the past year, Microsoft has witnessed significant fluctuations with a 52-week low of $213.43 and a 52-week high of $366.78.
As we analyze the financials of Microsoft (NASDAQ:MSFT), it becomes clear why investors are showing such confidence in the company’s prospects. With a market capitalization reaching an impressive $2.40 trillion, Microsoft has proven itself as one of the leading technology companies in terms of size and influence.
Additionally, some key financial ratios further solidify its standing in the market. The company boasts a P/E (price-to-earnings) ratio of 33.33 and a P/E/G (price-to-earnings growth) ratio of 2.36—both indicating favorable valuations relative to projected earnings growth potential.
Furthermore, Microsoft possesses a beta value of 0.90—a key measure used by investors to assess systematic risk—suggesting that the stock is slightly less volatile than the overall market.
In terms of liquidity ratios, Microsoft maintains healthy short-term liquidity positions as well. With a quick ratio of 1.75 and current ratio of 1.77—indicating its ability to meet short-term obligations—the company demonstrates sound financial management and prudence.
Microsoft recently released its earnings results for the quarter ending July 25th. The software giant exceeded expectations, reporting $2.69 earnings per share compared to the consensus estimate of $2.55, representing a positive surprise of $0.14. Furthermore, Microsoft achieved a return on equity of an impressive 38.70% and a net margin of 34.15%.
The company’s revenue for the quarter reached $56.19 billion, surpassing the consensus estimate of $55.49 billion and reflecting an increase of 8.3% compared to the same period last year.
Overall, equities research analysts predict that Microsoft will achieve earnings per share of around 10.9 for the current fiscal year—solidifying investor confidence in continued growth and success.
In conclusion, Microsoft’s recent performance highlights its position as a prominent player in the technology industry, with significant hedge fund and institutional investments further bolstering confidence in its prospects. An array of positive analyst ratings and robust financial figures showcase why this software giant remains an attractive investment option for many market participants.
Note: This article is purely informational in nature and should not be construed as financial advice.
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