Stocks

Rise Advisors LLC Reduces Stake in Microsoft Corporation

Published December 2, 2024

Rise Advisors LLC has reduced its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 1.1% during the third quarter, according to reports from Holdings Channel. After selling 59 shares during this period, the institutional investor now holds 5,209 shares of the software giant. This position represents about 1.1% of Rise Advisors LLC's total investment portfolio, making Microsoft its 12th largest holding. At the close of the last quarter, the value of Rise Advisors LLC's stake in Microsoft was approximately $2,241,000.

Other hedge funds have also made moves related to Microsoft shares. For instance, Vanguard Group Inc. increased its stake in the company by 0.5% in the first quarter, now owning a total of 667,987,038 shares worth around $281 billion after acquiring 3,078,099 additional shares. Similarly, Capital International Investors raised its holdings by 1.0% during the same quarter and currently owns 83,571,070 shares valued at approximately $35.16 billion after purchasing another 842,884 shares. Ameriprise Financial Inc. also slightly boosted its position by 0.3%, now holding 34,511,544 shares, while Dimensional Fund Advisors LP increased its holdings significantly by 6.9%, with 24,091,789 shares valued at around $10.77 billion. Additionally, Rhumbline Advisers enhanced its stake by 0.3%, bringing its total to 14,738,956 shares valued at $6.59 billion. Overall, institutional investors control 71.13% of Microsoft’s shares.

Recent Analyst Price Targets

The stock has recently been reviewed by several analysts, resulting in updated price targets. TD Cowen has lowered its price target for Microsoft from $495.00 to $475.00 while maintaining a “buy” rating. Meanwhile, Wedbush has reiterated an “outperform” rating, setting a target price of $550.00. Citigroup has also adjusted its target from $500.00 to $497.00, maintaining a “buy” rating. Royal Bank of Canada, on the other hand, reaffirmed an “outperform” rating with a price target of $500.00. Lastly, DA Davidson revised its rating from “buy” to “neutral,” with a target price of $475.00. Currently, three analysts have given it a hold rating, while twenty-seven analysts view it as a strong buy. MarketBeat.com reports that Microsoft holds an average rating of “Moderate Buy” with a consensus target price of $503.03.

Insider Activity at Microsoft

In related news, CEO Satya Nadella sold 78,353 shares on September 4 at an average price of $408.63, totaling approximately $32 million. After this transaction, Nadella holds around 864,327 shares valued at about $353 million. This sale represents an 8.31% decrease in his holdings. Additionally, CMO Takeshi Numoto sold 2,500 shares on September 10 for about $1.03 million and now owns 50,000 shares valued at approximately $20.55 million, marking a 4.76% decrease in his ownership. Insider transactions in the past three months have seen a total of 209,431 shares sold, amounting to nearly $85.8 million. Insiders collectively own a mere 0.03% of Microsoft’s stock.

Current Microsoft Market Performance

As of Monday, shares of Microsoft (NASDAQ:MSFT) opened at $423.46. The stock has fluctuated within a range of $362.90 (its one-year low) to $468.35 (its one-year high). The fifty-day moving average stands at $420.84, while the two-hundred-day moving average is at $426.55. Microsoft holds a market capitalization of $3.15 trillion, with a P/E ratio of 34.94 and a price-to-earnings-growth ratio of 2.25. Its beta is recorded at 0.91. Additional financial ratios include a debt-to-equity ratio of 0.15, a current ratio of 1.30, and a quick ratio of 1.29.

In its latest quarterly earnings report released on October 30, Microsoft posted an EPS of $3.30, surpassing the consensus estimate of $3.10. The company achieved a net margin of 35.61% and a return on equity of 34.56%. Reported revenue for the quarter was $65.59 billion, exceeding analyst expectations of $64.57 billion. Compared to the previous year, this marks a 16% increase in revenue. Analysts anticipate an EPS of 12.93 for the current fiscal year.

Microsoft’s Dividend Increase

Recently, Microsoft declared a quarterly dividend to be paid on December 12. Shareholders recorded on November 21 will receive a dividend of $0.83, an increase from the previous $0.75. This raises the annualized dividend to $3.32, equating to a yield of 0.78%. The ex-dividend date is November 21, with a payout ratio of 27.39%.

Moreover, the Board of Directors has approved a share buyback plan allowing Microsoft to repurchase up to $60 billion of its outstanding shares, which equates to approximately 1.9% of its total stock. Such buyback programs typically indicate management's belief that the shares are undervalued in the market.

Overview of Microsoft Corporation

Microsoft Corporation is a global leader in software, services, devices, and solutions. The company offers a range of products across its various segments, including productivity tools, cloud services, and consumer applications.