BluePath Capital Management LLC Reduces Microsoft Stake

On January 2, 2025, it was reported that BluePath Capital Management LLC has reduced its holdings in Microsoft Co. (NASDAQ:MSFT) by 12.8% during the third quarter of the fiscal year. Following this adjustment, the firm currently holds 7,827 shares of the tech giant after selling 1,145 shares. Microsoft now makes up approximately 2.1% of BluePath's overall investment portfolio, ranking as its eighth largest position. As per the latest filings with the Securities and Exchange Commission, BluePath’s investment in Microsoft is valued at $3,368,000.

In addition to BluePath, several other institutional investors have either increased or decreased their positions in Microsoft's stock recently. For instance, Christopher J. Hasenberg Inc raised its stake in Microsoft by an impressive 169.2% during the previous quarter, thereby owning 70 shares worth $31,000 after adding 44 shares. Similarly, Quarry LP entered the fray by acquiring a new stake valued at $45,000 in the second quarter, while Innealta Capital LLC reported a new position worth $75,000. Carolina Wealth Advisors LLC also increased its stake by 10.1% in the third quarter, totaling 338 shares valued at $145,000 after an additional purchase of 31 shares. Bbjs Financial Advisors LLC made a significant bump to their position, increasing it by 241.4% during the same period, bringing their total to 379 shares worth $169,000. Overall, hedge funds and institutional investors collectively hold around 71.13% of Microsoft’s stock.

Microsoft's Market Performance

Microsoft shares opened at $421.50 on a recent trading day, showing a twelve-month low of $366.50 and a twelve-month high of $468.35. The company demonstrates good financial health, indicated by a current ratio of 1.30, a quick ratio of 1.29, and a low debt-to-equity ratio of 0.15. With a market capitalization of approximately $3.13 trillion, Microsoft has a price-earnings ratio of 34.78 and a price-to-earnings-growth ratio of 2.37, with a beta value of 0.90. The stock’s 50-day moving average stands at $428.83, while its 200-day moving average is $428.45.

Recently, Microsoft reported strong earnings results on October 30th. The company reported earnings per share (EPS) of $3.30 for the quarter, exceeding analysts’ expectations of $3.10 by $0.20. The net margin stands impressively at 35.61%, with a return on equity of 34.56%. The total revenue for the quarter hit $65.59 billion, surpassing projected figures of $64.57 billion. Comparing to the same quarter last year, this marked a revenue increase of 16.0%.

Share Repurchase Program and Dividend Announcement

In a move to boost shareholder value, Microsoft’s Board of Directors announced on September 16th the initiation of a $60 billion share repurchase program. This initiative will allow the company to buy back up to 1.9% of its outstanding shares, which typically signals that management views the stock as undervalued.

Alongside this, Microsoft has declared a quarterly dividend of $0.83 per share, set to be paid on March 13th. Shareholders who are on record as of February 20th will receive this dividend. The ex-dividend date is also on February 20th, resulting in an annualized dividend of $3.32 and a yield of 0.79%.

Recent Insider Transactions

Recent insider activity includes the sale of 1,000 shares by CMO Takeshi Numoto on November 22nd. These shares were sold at an average price of $414.72, totaling $414,720. Following the transaction, Numoto holds approximately 57,511 shares valued at around $23,850,961.92, which is a 1.71% decrease in ownership. Additionally, EVP Christopher David Young sold 7,200 shares on November 12th, amounting to $3,050,352.00 at an average price of $423.66. Young now holds 103,366 shares worth about $43,792,039.56, reflecting a 6.51% decrease in their stake. Over the last three months, insiders have sold a total of 41,200 shares valued at $17,383,892, and only a small fraction of 0.03% of the company’s stock is held by insiders.

Analysts' Opinions on Microsoft

Wall Street analysts have provided various ratings for Microsoft. Morgan Stanley recently raised its price target from $506.00 to $548.00 while assigning an “overweight” rating on October 31st. Conversely, Sanford C. Bernstein slightly reduced its price target from $501.00 to $500.00 with an “outperform” rating. DA Davidson decreased its sentiment from a “buy” to a “neutral” rating with a $475.00 target price. On the other hand, Piper Sandler maintained an “overweight” rating with a target price of $470.00. Loop Capital had a bullish outlook, raising its target from $500.00 to $550.00 and rating the stock as a “buy.” MarketBeat.com reports that a total of three analysts endorse holding the stock while twenty-seven are in favor of buying it, resulting in a “Moderate Buy” rating with an average target of $509.90.

Company Overview

Microsoft Corporation develops and offers a range of software, services, devices, and solutions both domestically and internationally. The company’s various segments include Productivity and Business Processes, which features services like Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security, Compliance, Microsoft Viva, and Microsoft 365 Copilot, along with consumer services such as Microsoft 365 subscriptions and Office on-premises offerings.

Conclusion

This recent reduction in Microsoft shares by BluePath Capital Management LLC, along with the company’s strong financial performance and ongoing initiatives, reflects the dynamic nature of investments and the ongoing interest in one of the prominent players in the tech industry.

Microsoft, Investment, Shares