Smith Partners Wealth Management LLC Makes New $1.42 Million Investment in Microsoft Corporation $MSFT

Key Points

• Smith Partners Wealth Management purchased 3,816 Microsoft shares worth approximately $1.42 million, making Microsoft 1.1% of its portfolio. Institutional investors collectively own 71.13% of the company.
• Microsoft reported strong quarterly results, with revenue up 17.7% year over year to $90.01 billion and earnings of $4.74 per share, beating expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $578.73.
• Microsoft insiders sold 143,009 shares worth about $71.4 million over the past 90 days, while the company raised its quarterly dividend to $0.98 per share, or $3.92 annually.

Smith Partners Wealth Management LLC purchased a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 3,816 shares of the software giant's stock, valued at approximately $1,423,000. Microsoft comprises about 1.1% of Smith Partners Wealth Management LLC's investment portfolio, making the stock its 16th biggest position.

A number of other institutional investors have also modified their holdings of the stock. Frankly Finances LLC bought a new position in shares of Microsoft in the second quarter valued at approximately $35,000. Fiduciary Advisors Inc. lifted its stake in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after buying an additional 34 shares during the period. Persistent Asset Partners Ltd acquired a new stake in Microsoft during the second quarter worth about $60,000. Lifetime Wealth Management P.C. acquired a new stake in Microsoft during the fourth quarter worth about $101,000. Finally, Glynn Capital Management LLC increased its position in shares of Microsoft by 34.2% during the second quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock valued at $95,000 after purchasing an additional 65 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Insider Buying and Selling

In other news, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 143,009 shares of company stock valued at $71,420,699. Corporate insiders own 0.03% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on MSFT. Argus dropped their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a report on Friday, July 10th. The Goldman Sachs Group restated a "buy" rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Microsoft in a research note on Monday, September 28th. Weiss Ratings upgraded shares of Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday. Finally, Citigroup raised shares of Microsoft from a "market outperform" rating to a "buy" rating in a research note on Monday, October 5th. Forty-two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $578.73.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Microsoft Stock Up 2.4%

Shares of NASDAQ:MSFT opened at $535.07 on Friday. The company has a market capitalization of $3.97 trillion, a PE ratio of 29.79, a price-to-earnings-growth ratio of 1.72 and a beta of 1.10. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a fifty day moving average of $501.15 and a 200-day moving average of $434.73.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the prior year, the business posted $3.65 earnings per share. Microsoft's quarterly revenue was up 17.7% on a year-over-year basis. On average, equities analysts predict that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is presently 20.27%.

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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