Microsoft Corporation $MSFT Stock: Artemis Investment Management LLP Raises Holdings

Key Points

• Artemis Investment Management increased its Microsoft stake by 2,550.8% in the third quarter, ending the period with 573,809 shares valued at about $294.3 million.
• Microsoft beat quarterly earnings and revenue estimates, reporting EPS of $4.89 and revenue of $92.28 billion, up 18.8% year over year.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $609.54; Microsoft also raised its quarterly dividend from $0.91 to $0.98 per share.

Artemis Investment Management LLP grew its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2,550.8% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 573,809 shares of the software giant's stock after purchasing an additional 552,162 shares during the quarter. Microsoft makes up about 2.3% of Artemis Investment Management LLP's portfolio, making the stock its 7th largest position. Artemis Investment Management LLP's holdings in Microsoft were worth $294,307,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Bank of America Corp DE acquired a new stake in Microsoft during the second quarter worth approximately $27,338,370,000. Legal & General Group Plc bought a new stake in Microsoft in the second quarter worth approximately $18,306,443,000. Jupiter Topco LLC acquired a new position in Microsoft in the second quarter valued at approximately $6,928,664,000. Canada Pension Plan Investment Board acquired a new position in Microsoft in the second quarter valued at approximately $5,653,812,000. Finally, The Manufacturers Life Insurance Company acquired a new position in Microsoft in the second quarter valued at approximately $4,000,706,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have recently commented on MSFT shares. Phillip Securities downgraded shares of Microsoft from a "moderate buy" rating to a "hold" rating in a research report on Monday, October 12th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Microsoft in a research report on Tuesday. Evercore upgraded shares of Microsoft from an "underperform" rating to an "outperform" rating in a research report on Monday, October 5th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $600.00 target price on shares of Microsoft in a research note on Monday, October 12th. Finally, Weiss Ratings upgraded shares of Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $609.54.

Microsoft Trading Down 2.2%

Shares of Microsoft stock opened at $533.16 on Wednesday. The stock has a market capitalization of $3.96 trillion, a PE ratio of 30.22, a price-to-earnings-growth ratio of 1.61 and a beta of 1.05. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $559.15. The stock has a 50 day moving average price of $517.80 and a two-hundred day moving average price of $441.10. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. During the same period in the prior year, the firm earned $4.13 earnings per share. Microsoft's revenue for the quarter was up 18.8% on a year-over-year basis. As a group, equities analysts anticipate that Microsoft Corporation will post 19.87 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is presently 19.00%.

Insiders Place Their Bets

In other Microsoft news, EVP Amy Hood sold 7,305 shares of the firm's stock in a transaction on Monday, November 9th. The shares were sold at an average price of $544.37, for a total value of $3,976,622.85. Following the transaction, the executive vice president directly owned 548,091 shares of the company's stock, valued at approximately $298,364,297.67. This trade represents a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 142,809 shares of company stock valued at $72,114,646 in the last 90 days. 0.03% of the stock is currently owned by company insiders.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and IBM introduced Imagine Enterprise, a platform combining IBM’s library of more than 6,000 AI agents with Microsoft’s cloud, data and security tools. The partnership could help drive enterprise demand for Microsoft’s AI and cloud services. IBM and Microsoft Announce a New AI Agent Platform Designed for Industry-Specific Transformation
• Positive Sentiment: A five-year partnership with Ohio State University will apply Microsoft’s cloud and AI technology to healthcare, research and education, adding another potential customer and use case. Ohio State and Microsoft announce five-year strategic partnership
• Neutral Sentiment: Microsoft reportedly urged the administration to drop a proposed ban on Chinese data-center technology, warning that restrictions could complicate data-center deployment. The outcome could affect equipment access and rollout timing. Microsoft presses Trump to scuttle expected ban on Chinese data-center technology
• Negative Sentiment: Anthropic unveiled workplace tools that could compete with Microsoft Office, including spreadsheet-related capabilities. The move raised concerns about competition in Microsoft’s enterprise software business. Anthropic unveils office suite to challenge Microsoft
• Negative Sentiment: A hot inflation report and rising bond yields weighed on the broader market, creating an additional headwind for technology shares. Stock market coverage on inflation and technology shares

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, and digital solutions for consumers, businesses, and public-sector organizations. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.

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