Blue Square Asset Management LLC Increases Stake in Microsoft Co.

Blue Square Asset Management LLC has increased its investment in Microsoft Co. (NASDAQ:MSFT) by 2.1% during the second quarter, according to a report from HoldingsChannel. The investment firm now holds 8,248 shares of the tech giant after purchasing an additional 169 shares in that period. Microsoft represents approximately 2.1% of Blue Square Asset Management's overall holdings, making it their 15th largest investment. As of the latest reporting period, Blue Square's holdings in Microsoft were valued at $3,686,000.

Other institutional investors have also been active in adjusting their positions in Microsoft. For instance, Swedbank AB established a new stake in the company worth roughly $5.59 billion during the first quarter. Similarly, Vanguard Group Inc. raised its stake in Microsoft by 0.5%, now holding 667,987,038 shares valued at $281 billion after acquiring 3,078,099 additional shares in the last quarter. Canada Pension Plan Investment Board significantly increased its holdings by 77.6% in the same quarter, owning 6,281,925 shares valued at approximately $2.64 billion after buying an additional 2,744,900 shares. New positions were also taken by Global Assets Advisory LLC, valued at around $990 million, and M&G Plc, with a stake worth roughly $846 million. Institutional and hedge fund investors collectively control about 71.13% of Microsoft's shares.

Recent Performance of Microsoft Stock

The stock of Microsoft opened at $428.15 on a recent Friday and has demonstrated a yearly range between a low of $326.94 and a high of $468.35. Financial indicators show the company has a debt-to-equity ratio of 0.16, a quick ratio of 1.27, and a current ratio of 1.27. Microsoft has a market capitalization of $3.18 trillion, a price-to-earnings (P/E) ratio of 37.07, a P/E/G ratio of 2.24, and a beta of 0.90.

In its latest quarterly earnings report, Microsoft reported an earnings per share (EPS) of $2.95, exceeding analysts' expectations of $2.90 by $0.05. The company’s revenue reached $64.73 billion during the quarter, while forecasts had estimated $64.38 billion. The company's revenue represented a 15.2% increase year-over-year. Predictions from analysts suggest that Microsoft may post an EPS of 13.02 for the current year.

Dividend Increase Announcement

Microsoft recently announced a quarterly dividend that is set to be paid on December 12. Shareholders on record by November 21 will receive a dividend of $0.83 per share, up from the previous $0.75. This results in an annualized dividend of $3.32, yielding 0.78%, with a payout ratio currently standing at 28.74%.

Additionally, on September 16, Microsoft’s board approved a share repurchase program that allows for the buyback of up to $60 billion in shares, which would represent about 1.9% of its outstanding stock. Share buyback programs are typically perceived as a signal that company management believes its shares are undervalued.

Analyst Sentiment on Microsoft

Recently, several analysts have revised their ratings on Microsoft shares. DA Davidson changed its rating from “buy” to “neutral,” setting a price target of $475. Meanwhile, Piper Sandler adjusted its target price from $485 to $470, maintaining an “overweight” rating. On the other hand, Wedbush maintained an “underperform” rating for the stock. Morgan Stanley reaffirmed an “overweight” rating, projecting a target price of $506. KeyCorp also raised its price target from $490 to $505, assigning an “overweight” rating. Currently, one analyst rates the stock as a sell, three rate it as hold, and twenty-six have issued buy ratings, leading to an average rating of "Moderate Buy" with a consensus target price of $502.97.

Insider Transactions at Microsoft

In other corporate news, Microsoft CEO Satya Nadella sold 78,353 shares on September 4 at an average price of $408.63, resulting in proceeds exceeding $32 million. Following this sale, Nadella still holds 864,327 shares valued at around $353 million, reflecting a negligible change in his ownership stake. Similarly, CFO Amy Hood sold 38,000 shares on September 5 for approximately $15.6 million, maintaining direct ownership of 496,369 shares worth about $204 million. Over the last ninety days, Microsoft insiders have sold a total of 190,629 shares valued at approximately $77.9 million, with corporate insiders owning about 0.03% of the company's stock.

Company Overview

Microsoft Corporation is a global provider of software, services, devices, and solutions. Its offerings in the Productivity and Business Processes segment include Office, Exchange, SharePoint, Microsoft Teams, and Microsoft 365 products, among other services.

Investment, Microsoft, Assets