Signal Advisors Wealth LLC has significantly increased its investment in Microsoft Corporation, raising its holdings by 27.7% during the third quarter of 2023. The investment firm reported in its latest Form 13F filing with the Securities and Exchange Commission (SEC) that it now holds 46,941 shares of the technology giant, having acquired an additional 10,168 shares during the quarter. Microsoft now represents 2.2% of Signal Advisors’ overall portfolio, making it the eighth largest position in their investment strategy, valued at approximately $24.31 million.
Several other prominent investors have also adjusted their positions in Microsoft. For instance, AlphaQuest LLC increased its stake by 5.9% in the second quarter, now owning 342 shares valued at $170,000. Similarly, PMV Capital Advisers LLC also raised its holdings by 5.9%, acquiring an additional 20 shares, bringing its total to 359 shares worth $178,000. Other firms, including Seek First Inc. and Level Financial Advisors, have also augmented their investments, reflecting a growing confidence in Microsoft’s market performance.
Institutional investors and hedge funds collectively own approximately 71.13% of Microsoft’s stock, indicating strong institutional support for the company.
Current Stock Performance and Dividend Announcement
As of the latest trading session, shares of Microsoft opened at $487.61. Over the past year, the stock has demonstrated considerable volatility, reaching a low of $344.79 and a high of $555.45. Microsoft boasts a market capitalization of $3.62 trillion and has a price-to-earnings (P/E) ratio of 34.68. The company reported a quick ratio of 1.39 and a current ratio of 1.40, underscoring its strong liquidity position.
In addition to its strong stock performance, Microsoft has announced a quarterly dividend of $0.91 per share, set to be paid on March 12, 2024. Shareholders of record as of February 19, 2024, will receive this dividend, representing an annualized payout of $3.64 and a yield of 0.7%. The company’s dividend payout ratio currently stands at 25.89%, indicating a balanced approach to returning value to shareholders while maintaining reinvestment in business growth.
Insider Transactions and Analyst Outlook
Recent insider transactions have also caught attention. On November 3, 2023, insider Bradford L. Smith sold 38,500 shares at an average price of $518.64, totaling $19,967,640. Post-transaction, Smith retains 461,597 shares valued at nearly $239.40 million, reflecting a 7.70% decrease in his ownership. Additionally, Takeshi Numoto, the Executive Vice President, sold 2,850 shares at an average price of $478.72, resulting in a total value of $1,364,352. This sale marked a 4.86% reduction in Numoto’s holdings.
Analysts remain optimistic about Microsoft’s future performance. Baird upgraded the tech giant to a “strong-buy” rating on November 14, 2023. The Goldman Sachs Group reaffirmed a “buy” rating with a target price of $630.00, while HSBC increased its price target from $643.00 to $648.00. The consensus among analysts indicates an average rating of “Moderate Buy” and a target price of $631.03, with two analysts rating it as a “Strong Buy,” thirty-seven issuing a “Buy,” and four recommending a “Hold.”
Microsoft Corporation, established in 1975 by Bill Gates and Paul Allen, continues to be a leading player in the global technology landscape. The company is headquartered in Redmond, Washington, and develops a wide range of software and services, including the widely used Windows operating system and the Microsoft 365 suite of productivity tools.
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