Perpetual Ltd has increased its stake in Microsoft Corporation (NASDAQ: MSFT) by 8.4% during the third quarter of 2023, as detailed in the company’s latest Form 13F filing with the Securities & Exchange Commission. Following this acquisition, Perpetual Ltd now holds 503,612 shares of the technology giant, having added 38,847 shares in the recent quarter. Microsoft represents 3.2% of Perpetual Ltd’s total portfolio, making it the firm’s second-largest holding, valued at approximately $260,846,000.
Several other institutional investors have also made adjustments to their Microsoft holdings. Longfellow Investment Management Co. LLC significantly boosted its stake by 51.3% in the second quarter, bringing its total to 59 shares valued at about $29,000. Additionally, Westend Capital Management LLC increased its position by an impressive 386.7%, resulting in ownership of 73 shares, now valued at around $36,000. Other notable changes include new stakes from Bulwark Capital Corp at approximately $32,000, and the University of Illinois Foundation, which acquired a position worth about $50,000. Overall, institutional investors now hold approximately 71.13% of Microsoft’s stock.
In related news, insider trading activity has been notable. On December 4, 2023, Executive Vice President Takeshi Numoto sold 2,850 shares at an average price of $478.72, amounting to a total of $1,364,352. Post-sale, Numoto retains 55,782 shares valued at approximately $26,703,959.04, reflecting a 4.86% reduction in ownership. Similarly, insider Bradford L. Smith divested 38,500 shares on November 3, 2023, at an average price of $518.64, totaling $19,967,640. This transaction decreased Smith’s holdings by 7.70% to 461,597 shares, worth around $239,402,668.08. In the last 90 days, insiders have sold a total of 54,100 shares, valued at $27,598,872. Currently, insiders own only 0.03% of the company’s stock.
Microsoft recently reported its quarterly earnings on October 29, 2023, showcasing a strong performance. The company recorded earnings per share (EPS) of $4.13, surpassing analysts’ expectations of $3.65 by $0.48. Revenue for the quarter reached $77.67 billion, exceeding forecasts of $75.49 billion. Microsoft’s net margin stands at 35.71%, with a return on equity of 32.45%. Notably, revenue increased by 18.4% year-over-year, up from $3.30 EPS reported the previous year.
In addition to its financial performance, Microsoft has announced a quarterly dividend of $0.91 per share, scheduled for payment on March 12, 2024. Shareholders on record as of February 19, 2024, will receive this dividend, which translates to an annualized payout of $3.64 and a yield of 0.7%. The company’s current payout ratio is 25.89%.
Research analysts have provided varying opinions on Microsoft’s stock. Daiwa Capital Markets adjusted its target price from $640.00 to $630.00, maintaining a “buy” rating. In contrast, Wells Fargo & Company raised its target from $675.00 to $700.00, while Piper Sandler reaffirmed an “overweight” rating with a target of $650.00. Wolfe Research lowered its price target from $675.00 to $625.00 but retained an “outperform” rating. The consensus rating for Microsoft is classified as a “Moderate Buy,” with a target price averaging $631.03.
As a global leader in technology, Microsoft Corporation, headquartered in Redmond, Washington, has continued to evolve since its founding in 1975 by Bill Gates and Paul Allen. The company focuses on a wide array of software products, services, and devices, serving consumers, enterprises, and governments worldwide. Microsoft’s extensive portfolio includes the Windows operating system and the Microsoft 365 suite of productivity tools, among others.
For ongoing updates and insights into Microsoft and its market performance, stakeholders can consult resources such as MarketBeat, which provides daily summaries of news and analyst ratings pertinent to Microsoft and similar companies.
