Waldron Private Wealth LLC Holds $39.50 Million in Microsoft Co. (NASDAQ:MSFT)

Waldron Private Wealth LLC has recently adjusted its stake in Microsoft Co. (NASDAQ:MSFT) by decreasing its holdings by 2.6% during the second quarter of the year. According to its latest filing with the Securities and Exchange Commission (SEC), the firm now owns 88,377 shares of Microsoft after selling 2,362 shares during this period. Microsoft represents 1.8% of Waldron Private Wealth’s portfolio, making it the 12th largest position in their investments. As of the most recent filing, Waldron's holdings in Microsoft were valued at approximately $39.5 million.

A variety of other institutional investors have also made changes to their positions in Microsoft recently. For example, Christopher J. Hasenberg Inc. increased its stake by 169.2% in the second quarter, now owning 70 shares worth about $31,000 after purchasing 44 additional shares. Similarly, Neo Ivy Capital Management acquired a new stake in Microsoft worth around $58,000 during the fourth quarter. Richardson Capital Management LLC also expanded its holdings significantly by 1,290.0% during the first quarter, bringing its total to 139 shares valued at $59,000 after buying 129 extra shares. Innealta Capital LLC entered a new position in Microsoft during the second quarter, estimated at approximately $75,000. Bellevue Group AG also raised its holdings by 47.5% in the first quarter, owning 180 shares worth about $76,000 after purchasing 58 additional shares. Overall, institutional investors own 71.13% of Microsoft’s stock.

Insider Trading Activity

In related news, there have been some notable insider transactions at Microsoft. On September 9th, insider Bradford L. Smith sold 40,000 shares of the company at an average price of $402.59, totaling about $16,103,600. Following this sale, he holds 544,847 shares, valued at around $219,349,953.73, which is a 0.00% decrease in his overall position. This transaction was disclosed in a filing with the SEC. Furthermore, EVP Kathleen T. Hogan sold 17,378 shares on September 10th at an average price of $411.85, amounting to approximately $7,157,129.30. After this transaction, she retains 150,161 shares valued at around $61,843,807.85, also reflecting a 0.00% change in her position. In total, insiders have sold 190,629 shares over the last 90 days, with the stock ownership by insiders standing at 0.03%.

Current Microsoft Stock Performance

The stock opened at $416.32 on the last Friday, with its 50-day moving average at $417.92 and a 200-day moving average at $424.65. Microsoft’s market capitalization stands at $3.09 trillion, featuring a price-to-earnings ratio of 35.25, a PEG ratio of 2.22, and a beta of 0.90. Over the past 52 weeks, Microsoft has experienced a low of $324.39 and a high of $468.35. The company sports a debt-to-equity ratio of 0.16 and both its current and quick ratios are 1.27.

On July 30th, Microsoft released its quarterly earnings, reporting earnings per share of $2.95, exceeding the analysts' average estimate of $2.90. The total revenue for the quarter was reported at $64.73 billion, higher than the expected $64.38 billion. Moreover, Microsoft achieved a return on equity of 35.95% and a net margin of 35.96%, with quarterly revenue increasing by 15.2% year-over-year compared to $2.69 earnings per share from the previous year. Analysts predict an earnings per share of 13.02 for this fiscal year, reflecting strong growth potential.

Share Repurchase Program and Dividends Announcement

Microsoft’s Board of Directors announced a new share buyback program on September 16th, allowing the company to repurchase up to $60 billion of its shares, approximately 1.9% of its outstanding stock. Such buybacks often indicate that the leadership believes the stock is undervalued in the market.

Additionally, Microsoft disclosed a new quarterly dividend plan, set to be paid on December 12th. Shareholders of record as of November 21st will receive a dividend of $0.83. This is an increase from the previous quarterly dividend of $0.75, representing an annualized dividend of $3.32 and a yield of 0.80%. The current dividend payout ratio stands at 25.40%.

Analysts' Ratings Adjustments

Multiple research firms have recently assessed Microsoft’s stock. Citigroup adjusted its price target from $520.00 to $500.00, maintaining a “buy” rating. Goldman Sachs also lowered their target from $515.00 to $500.00 while keeping a “buy” rating. Conversely, Wells Fargo increased its price target from $500.00 to $515.00 and reiterated an “overweight” rating. Additionally, Piper Sandler reaffirmed an “overweight” designation with a target price set at $485.00. BMO Capital Markets has upped its target from $465.00 to $500.00 along with an “outperform” rating. In total, three analysts have rated the stock with a hold rating, but a significant majority of thirty analysts have recommended buying. Currently, the consensus rating is a “Moderate Buy” with a target price of $493.47.

Microsoft Company Overview

Microsoft Corporation is a global leader in developing software, services, devices, and solutions. Its Productivity and Business Processes segment includes products like Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Microsoft 365 Copilot, along with consumer services such as Microsoft 365 subscriptions and licensed Office services.

Waldron, Microsoft, Investment