GAMMA Investing LLC has increased its investment in Microsoft Corporation (NASDAQ: MSFT) by 6.8% during the third quarter of 2023, according to HoldingsChannel. The fund now holds 166,226 shares, having acquired an additional 10,642 shares during this period. With a current valuation of approximately $86.1 million, Microsoft represents 4.7% of GAMMA’s total holdings, making it the second largest position in the fund’s portfolio.
The trend of significant investments in Microsoft continues, as several prominent investors have recently adjusted their stakes. Notably, Norges Bank established a new position in Microsoft during the second quarter, valued at $50.5 billion. Meanwhile, Kingstone Capital Partners Texas LLC dramatically increased its position by over 564,000%, now owning 90,549,369 shares worth approximately $45 billion after acquiring 90,533,328 shares in the last quarter.
Nuveen LLC also entered a new investment in Microsoft, valued around $18.7 billion, while Laurel Wealth Advisors LLC expanded its holdings by a staggering 49,640%, now possessing 29,967,038 shares worth about $14.9 billion. Additionally, Vanguard Group Inc. raised its stake by 2%, currently holding 705 million shares valued at $350.7 billion. Overall, institutional investors control 71.13% of Microsoft’s stock.
Microsoft’s Stock Performance
As of Thursday, shares of Microsoft opened at $476.12. The company has experienced a year of volatility, with a low of $344.79 and a high of $555.45. Microsoft boasts a market capitalization of $3.54 trillion and a price-to-earnings (P/E) ratio of 33.86. Its P/E to growth (P/E/G) ratio stands at 1.79, with a beta of 1.07. The stock’s moving averages indicate stability, with a 50-day average of $501.05 and a 200-day average of $502.70. Financial ratios reveal a debt-to-equity ratio of 0.10, a current ratio of 1.40, and a quick ratio of 1.39.
Dividend Announcement and Analyst Ratings
Microsoft recently declared a quarterly dividend of $0.91, scheduled for payment on March 12, 2024. Shareholders of record on February 19, 2024 will receive this payment, representing an annualized dividend of $3.64 and a yield of 0.8%. The company’s dividend payout ratio currently stands at 25.89%.
Recent reports from analysts indicate a positive outlook for Microsoft’s stock. Wall Street Zen upgraded its rating from “hold” to “buy” on December 6, 2023. HSBC raised its target price from $643.00 to $648.00 on October 27, 2023. Other analysts, including Cantor Fitzgerald and Stifel Nicolaus, have set price targets of $639.00 and $640.00, respectively. Overall, Microsoft has received a consensus rating of “Moderate Buy” from analysts, with an average price target of $631.03.
In terms of insider trading, notable transactions have occurred recently. Bradford L. Smith, Microsoft’s President, sold 38,500 shares on November 3, 2023, at an average price of $518.64, totaling approximately $19.97 million. Following this sale, Smith retained 461,597 shares valued at about $239.4 million, reflecting a 7.70% decrease in his ownership. Additionally, CEO Judson Althoff sold 12,750 shares on December 2, 2023, at an average price of $491.52, amounting to around $6.27 million. After this transaction, Althoff owned 129,349 shares valued at approximately $63.6 million, marking an 8.97% decrease in his stake.
As Microsoft continues to innovate and expand its market presence, investor interest remains strong, indicating confidence in the company’s future growth and stability.
