Migdal Insurance & Financial Holdings Ltd. Buys 178,249 Shares of Microsoft Corporation $MSFT

Key Points

• Migdal Insurance & Financial Holdings boosted its Microsoft stake by 89.4% in the fourth quarter, buying 178,249 additional shares. The firm now owns 377,607 shares valued at about $182.6 million.
• Microsoft reported strong quarterly results, with EPS of $4.27 beating estimates and revenue of $82.89 billion topping forecasts. Revenue rose 18.3% year over year, and analysts expect full-year EPS of 16.76.
• The stock was trading up 3.1% at $421.92, while analysts remain broadly positive with a Moderate Buy consensus and an average price target of $560.88. Microsoft also announced a quarterly dividend of $0.91 per share, payable June 11.

Migdal Insurance & Financial Holdings Ltd. increased its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 89.4% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 377,607 shares of the software giant's stock after buying an additional 178,249 shares during the quarter. Microsoft accounts for about 1.6% of Migdal Insurance & Financial Holdings Ltd.'s investment portfolio, making the stock its 20th largest position. Migdal Insurance & Financial Holdings Ltd.'s holdings in Microsoft were worth $182,643,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also modified their holdings of MSFT. Longfellow Investment Management Co. LLC lifted its position in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after buying an additional 20 shares during the period. Bayforest Capital Ltd bought a new position in shares of Microsoft during the 3rd quarter worth approximately $38,000. LSV Asset Management bought a new position in shares of Microsoft during the 4th quarter worth approximately $44,000. Sellwood Investment Partners LLC bought a new position in shares of Microsoft during the 3rd quarter worth approximately $49,000. Finally, Daytona Street Capital LLC bought a new position in shares of Microsoft during the 4th quarter worth approximately $50,000. Institutional investors own 71.13% of the company's stock.

Microsoft Trading Up 3.1%

Shares of MSFT opened at $421.92 on Friday. The stock has a fifty day moving average price of $398.18 and a two-hundred day moving average price of $441.39. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. Microsoft Corporation has a 52-week low of $356.28 and a 52-week high of $555.45. The company has a market cap of $3.13 trillion, a price-to-earnings ratio of 25.11, a PEG ratio of 1.47 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, beating the consensus estimate of $4.06 by $0.21. The company had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business's revenue for the quarter was up 18.3% on a year-over-year basis. During the same period last year, the firm earned $3.46 EPS. Analysts predict that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft's dividend payout ratio (DPR) is 21.67%.

Insider Buying and Selling at Microsoft

In other news, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction on Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the sale, the executive vice president directly owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John W. Stanton bought 5,000 shares of the stock in a transaction dated Wednesday, February 18th. The stock was purchased at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the purchase, the director directly owned 83,905 shares in the company, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their position. The SEC filing for this purchase provides additional information. 0.03% of the stock is currently owned by company insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bill Ackman revealed a new multi-billion-dollar stake in Microsoft (MSFT), saying the company looks attractively valued and highlighting Azure, Microsoft 365, and AI as key growth drivers. Reuters: Ackman's Pershing Square takes stake in Microsoft, citing 'compelling' valuation
• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft’s AI infrastructure, Azure growth, and OpenAI exposure could support further upside, with some seeing the stock’s weaker recent performance as a buying opportunity. TipRanks: Microsoft Buy Rating Reiterated as AI and Cloud Momentum Builds
• Neutral Sentiment: Microsoft also announced a board addition, appointing former EY chief Carmine Di Sibio to its board of directors, which is a governance update but not an immediate operating catalyst. PR Newswire: Microsoft announces appointment of Carmine Di Sibio to board of directors
• Negative Sentiment: The UK opened an antitrust probe into Microsoft’s business software and cloud practices, creating a potential regulatory overhang for the stock. Reuters: UK opens antitrust probe into Microsoft's business software
• Negative Sentiment: LinkedIn, a Microsoft-owned unit, announced 5% workforce cuts, reinforcing that the company is still trimming costs even as it ramps AI spending. Reuters: LinkedIn to lay off 5% of workforce amid tech industry cuts

Analyst Upgrades and Downgrades

MSFT has been the subject of several analyst reports. Morgan Stanley restated an "overweight" rating on shares of Microsoft in a research report on Thursday, January 29th. Guggenheim restated a "buy" rating and set a $586.00 target price on shares of Microsoft in a research report on Thursday, April 30th. Truist Financial cut their price objective on Microsoft from $675.00 to $575.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Wall Street Zen downgraded Microsoft from a "buy" rating to a "hold" rating in a research report on Sunday, January 18th. Finally, Wolfe Research cut their price objective on Microsoft from $625.00 to $530.00 and set an "outperform" rating for the company in a research report on Thursday, January 29th. Thirty-nine investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and a consensus price target of $560.88.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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