Coerente Capital Management's Microsoft Holdings: An Overview

Coerente Capital Management has slightly adjusted its stake in Microsoft Co. (NASDAQ:MSFT) by reducing it by 0.2% during the third quarter of the year. This information was disclosed in the firm’s recent Form 13F filing with the Securities and Exchange Commission. Following this adjustment, Coerente Capital Management now holds 120,196 shares of Microsoft, having sold 264 shares during the period.

Microsoft represents a significant portion of Coerente Capital's total investment portfolio, accounting for approximately 9.6%. At the close of the latest reporting period, the value of Coerente's Microsoft holdings was $51,720,000.

Institutional Investor Activity

Other institutional investors have also made moves regarding their Microsoft shares. For example, Christopher J. Hasenberg Inc increased its holdings in Microsoft by a remarkable 169.2% during the second quarter, resulting in ownership of 70 shares valued at $31,000 after acquiring an additional 44 shares.

Furthermore, Quarry LP established a new position in Microsoft in the same period with an investment of $45,000. Innealta Capital LLC also initiated a stake valued at around $75,000. Another institutional player, Carolina Wealth Advisors LLC, raised its position by 10.1% in the third quarter, now owning 338 shares worth $145,000 after adding 31 shares. Bbjs Financial Advisors LLC made headlines with a 241.4% increase in holdings during the second quarter, resulting in ownership of 379 shares valued at $169,000.

Overall, hedge funds and other institutional investors now control over 71.13% of Microsoft’s stock.

Analysts’ Perspectives on Microsoft

Several analysts on Wall Street have provided insights and forecasts concerning Microsoft shares. BMO Capital Markets has recently decreased its price target for Microsoft from $500.00 to $495.00 while maintaining an “outperform” rating. On the other hand, Wedbush kept its “outperform” rating intact but set a higher target price of $550.00 for Microsoft shares.

Citigroup also adjusted its expectations, lowering the price target from $500.00 to $497.00 while advocating a “buy” rating. KeyCorp raised its target price for Microsoft from $490.00 to $505.00, giving it an “overweight” rating. Royal Bank of Canada reiterated its “outperform” rating and established a price target of $500.00.

Market consensus shows three analysts rating the stock as a hold, whereas twenty-six provided a buy rating. According to data from MarketBeat.com, Microsoft's consensus rating is categorized as a “Moderate Buy” with an average target price of $508.46.

Insider Transactions

In recent insider news, Microsoft’s Executive Vice President, Christopher David Young, liquidated 7,200 shares on November 12 for an average price of $423.66, totaling a transaction value of $3,050,352. This action resulted in a 6.51% decrease in his overall stake, leaving him with 103,366 shares valued at approximately $43,792,039.56.

Additionally, Chief Marketing Officer Takeshi Numoto sold 2,500 shares on December 9, receiving $1,118,525 at an average price of $447.41. Post-sale, Numoto holds 49,352 shares valued at $22,080,578.32, reflecting a 4.82% reduction in his ownership. In total, insiders have sold 41,200 shares over the last three months, amounting to a value of $17,383,892.

Currently, insiders own only 0.03% of Microsoft’s stock.

Current Market Performance

As of the latest trading session, Microsoft shares opened at $436.60. The company is valued at $3.25 trillion, with a price-to-earnings (PE) ratio of 36.02 and a price-to-earnings growth (P/E/G) ratio of 2.37. It has a beta of 0.90, a current ratio of 1.30, a quick ratio of 1.29, and a debt-to-equity ratio of 0.15. Over the past year, Microsoft’s stock price has fluctuated between a low of $366.50 and a high of $468.35. The fifty-day and 200-day simple moving averages stand at $427.02 and $428.42, respectively.

Last reported earnings for Microsoft on October 30 indicated an earnings per share (EPS) of $3.30, exceeding consensus estimates of $3.10. Total revenue for the quarter was $65.59 billion against an expected $64.57 billion. Microsoft’s impressive net margin stands at 35.61%, with a return on equity of 34.56%. The company’s year-over-year revenue increased by 16.0%, with the previous year seeing an EPS of $2.99. Analysts predict an EPS of approximately 12.93 for the current fiscal year.

Dividends and Stock Buybacks

Microsoft has announced a quarterly dividend, set to be paid on March 13. Shareholders on record as of February 20 will receive $0.83 per share, signalling an annualized dividend of $3.32 and a yield of 0.76%. The current payout ratio stands at 27.39%.

Additionally, Microsoft's board has approved a substantial $60.00 billion share repurchase program, permitting share buybacks that represent up to 1.9% of the company’s outstanding shares. Such buyback programs often indicate management's belief that the shares are undervalued, reinforcing a commitment to returning value to shareholders.

Company Overview

Microsoft Corporation is a global leader in developing software, services, devices, and solutions. Its segments include productivity and business processes, offering a range of services such as Office 365, Microsoft Teams, and related software solutions.

Microsoft, Investors, Stocks, Funds, Earnings