Modern Wealth Management Boosts Microsoft Stake by 39.3%

Modern Wealth Management LLC has significantly increased its investment in Microsoft Corporation (NASDAQ:MSFT) by 39.3% during the first quarter of 2023. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission (SEC), the fund now holds 144,852 shares of the tech giant, having acquired an additional 40,860 shares in this period. As a result, Microsoft constitutes approximately 1.7% of Modern Wealth Management’s portfolio, making it the firm’s 12th largest holding, valued at approximately $54.38 million at the end of the reporting period.

Other institutional investors have also adjusted their positions in Microsoft. Ball & Co Wealth Management Inc. purchased a new stake in the company, valued at $31,000, in the fourth quarter. Similarly, Newton One Investments LLC increased its holdings by an impressive 66.7% during the first quarter, now owning 75 shares valued at $28,000 after acquiring an additional 30 shares. Additionally, LSV Asset Management initiated a new stake valued at $44,000, while IFS Advisors LLC raised its holdings by 50% in the same quarter, now owning 150 shares worth $57,000. Notably, ROSS JOHNSON & Associates LLC expanded its stake by a remarkable 155.7%, owning 156 shares valued at $59,000 after buying 95 more shares.

Currently, approximately 71.13% of Microsoft’s stock is held by hedge funds and institutional investors.

Analysts Raise Price Targets for Microsoft

Several equities research analysts have recently published their evaluations of Microsoft. In a report dated July 28, Raymond James Financial raised its price target from $490.00 to $570.00 while maintaining an “outperform” rating. Truist Financial increased its target from $650.00 to $675.00, also issuing a “buy” rating. Cantor Fitzgerald and Sanford C. Bernstein followed suit, raising their targets to $639.00 and $637.00, respectively, both maintaining an “outperform” rating.

As of now, one analyst has assigned a “Strong Buy” rating to Microsoft, while 29 have issued a “Buy” rating and two have recommended holding shares. According to data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and an average target price of $612.54.

Microsoft Stock Performance and Earnings Report

On the trading day of Tuesday, MSFT opened at $515.36. The stock has fluctuated significantly over the past year, with a twelve-month low of $344.79 and a high of $555.45. Microsoft’s financial health remains strong, with a market capitalization of $3.83 trillion, a price-to-earnings ratio of 37.78, and a price-to-earnings-growth ratio of 2.23.

In its latest quarterly earnings report released on July 30, Microsoft posted earnings of $3.65 per share, surpassing the consensus estimate of $3.35 by $0.30. The company achieved a net margin of 36.15% and a return on equity of 32.44%, with revenue amounting to $76.44 billion, exceeding expectations of $73.79 billion. This represented an 18.1% year-over-year increase in revenue.

Microsoft has set guidance for Q1 2026 at an expected earnings per share of $13.08.

In addition, Microsoft has announced a quarterly dividend, scheduled for issuance on December 11, 2023. Shareholders of record as of November 20, 2023 will receive a dividend of $0.91, an increase from the previous quarterly dividend of $0.83. This adjustment translates to an annualized dividend of $3.64, yielding approximately 0.7% with a current dividend payout ratio of 24.34%.

Recent Insider Transactions

In related news, insider transactions have also occurred at Microsoft. Takeshi Numoto, Executive Vice President, sold 4,850 shares on August 12 at an average price of $527.32, totaling approximately $2.56 million. Following this sale, Numoto holds 39,111 shares valued at around $20.62 million, reflecting an 11.03% decrease in his holdings.

Additionally, Satya Nadella, Microsoft’s CEO, sold 149,205 shares on September 3 at an average price of $504.78, amounting to around $75.32 million. After this transaction, Nadella retains 790,852 shares valued at approximately $399.21 million, marking a 15.87% decrease in his position. The details of these transactions have been disclosed in filings with the SEC.

Microsoft Corporation continues to innovate and expand its offerings globally, with a robust portfolio that includes software, services, devices, and solutions. The company remains a key player in technology, evidenced by its strong performance and ongoing investor interest.