Transcend Capital Advisors LLC increased its stake in Microsoft Corporation (NASDAQ: MSFT) by 3.6% during the third quarter, as reported in a recent filing with the Securities and Exchange Commission. The institutional investor now holds 83,774 shares of the technology giant, adding 2,877 shares during the quarter. As of the end of September, Transcend’s holdings in Microsoft were valued at approximately $43.39 million, representing about 3.0% of its total portfolio.
Several other institutional investors have also been active in adjusting their positions in Microsoft. For instance, Longfellow Investment Management Co. LLC raised its stake by 51.3% in the second quarter, acquiring an additional 20 shares to bring its total to 59 shares valued at $29,000. Similarly, Bayforest Capital Ltd and Sellwood Investment Partners LLC entered new positions worth approximately $38,000 and $49,000, respectively, during the third quarter. Overall, institutional investors now own about 71.13% of Microsoft’s stock.
Analyst Ratings and Market Performance
Recent analyst evaluations highlight a positive outlook for Microsoft shares. Oppenheimer reaffirmed an “outperform” rating on January 29, while Piper Sandler issued an “overweight” rating with a price target revised to $600, down from $650. Deutsche Bank Aktiengesellschaft lowered its target from $630 to $575, maintaining a “buy” rating, while Citigroup adjusted its target from $660 to $635 with a similar rating.
Overall, the consensus rating for Microsoft stands at “Moderate Buy,” with an average price target of $591.95, according to data compiled by MarketBeat. Notably, two analysts have assigned a “Strong Buy” rating, forty have given a “Buy” rating, and four have issued a “Hold” rating.
Insider Transactions and Financial Performance
In corporate insider activity, CEO Judson Althoff sold 12,750 shares on December 2 at an average price of $491.52, amounting to a total transaction of $6,266,880. Following this sale, Althoff retains 129,349 shares, valued at approximately $63.58 million. This sale reflects an 8.97% reduction in his ownership of Microsoft stock. Additionally, Director John W. Stanton purchased 5,000 shares at an average price of $397.35 on February 18, totaling $1,986,750. Post-transaction, Stanton’s holdings increased to 83,905 shares, valued at around $33.34 million.
Microsoft’s stock performance is noteworthy, with shares opening at $392.74. The company maintains a quick ratio of 1.38, a current ratio of 1.39, and a low debt-to-equity ratio of 0.09. The firm has a market capitalization of $2.92 trillion, a price-to-earnings (P/E) ratio of 24.56, and a beta of 1.08.
In its latest earnings report on January 28, Microsoft announced earnings per share (EPS) of $4.14, surpassing the consensus estimate of $3.86. The company reported revenues of $81.27 billion, exceeding analysts’ expectations of $80.28 billion, marking a 16.7% increase compared to the previous year.
Additionally, Microsoft recently declared a quarterly dividend of $0.91 per share, payable on March 12. Shareholders on record as of February 19 will receive this dividend, which represents an annualized amount of $3.64 and a yield of 0.9%.
Microsoft Corporation, headquartered in Redmond, Washington, is a leading global technology firm founded in 1975 by Bill Gates and Paul Allen. The company develops a wide range of software products, services, and devices for consumers and enterprises, with a portfolio that includes the Windows operating system and the Microsoft 365 suite of productivity tools.
