ACT Wealth Management LLC has reduced its stake in Microsoft Corporation (NASDAQ:MSFT) by 4.1% during the first quarter, as revealed in its latest Form 13F filing with the Securities and Exchange Commission (SEC). The firm now holds 2,867 shares of the software giant, having sold 124 shares in the quarter. This adjustment places Microsoft as the 19th largest holding for ACT Wealth Management, accounting for approximately 0.5% of its portfolio. The value of these holdings was reported at $1,076,000 in the most recent SEC filing.
Meanwhile, other institutional investors have also been adjusting their positions in Microsoft. WFA Asset Management Corp increased its holdings by 27.0% in the first quarter, now owning 1,016 shares valued at $427,000. Ironwood Wealth Management LLC raised its stake by 0.3% in the second quarter, while Discipline Wealth Solutions LLC significantly boosted its position by 410.4% in the third quarter. These movements reflect a broader trend among institutional investors, who collectively own 71.13% of Microsoft’s stock.
Insider Activity and Stock Performance
In recent insider activity, Bradford L. Smith, a Microsoft insider, sold 6,000 shares on May 5th at an average price of $433.17, totaling $2,599,020. Post-transaction, Smith retains 471,036 shares valued at over $204 million. Similarly, Executive Vice President Kathleen T. Hogan sold 21,500 shares on May 21st, with the stock priced at $453.77, resulting in a transaction worth $9,756,055. These sales are part of a broader trend, with insiders selling 135,743 shares worth over $60 million in the last ninety days.
Microsoft’s stock opened at $498.25 on Friday, with a market capitalization of $3.70 trillion. The company boasts a P/E ratio of 38.50 and a beta of 1.04, indicating moderate volatility. The stock’s 52-week range spans from a low of $344.79 to a high of $500.76, reflecting a robust performance over the past year.
Analyst Ratings and Financial Outlook
Wall Street analysts have shown a positive outlook on Microsoft’s stock. Stifel Nicolaus raised its target price from $475 to $500, maintaining a “buy” rating. Similarly, TD Securities adjusted its price objective to $490, also recommending a “buy.” Jefferies Financial Group was particularly bullish, increasing their target to $550. Despite these optimistic evaluations, Bank of America slightly lowered its target to $480, yet still advised a “buy” rating. Overall, Microsoft holds a consensus rating of “Moderate Buy” with a price target of $524.71, according to MarketBeat.
Microsoft’s recent earnings report exceeded expectations, with quarterly earnings per share (EPS) of $3.46, surpassing the consensus estimate of $3.22. The company reported revenue of $70.07 billion, a 13.3% increase from the previous year, underscoring its strong market position. Analysts project an EPS of 13.08 for the current year, indicating sustained growth potential.
Dividend Announcement and Future Prospects
In addition to its robust earnings, Microsoft announced a quarterly dividend of $0.83 per share, payable on September 11th to shareholders of record as of August 21st. This dividend reflects an annualized payout of $3.32, yielding 0.67%. The company’s dividend payout ratio stands at 25.66%, highlighting its commitment to returning value to shareholders.
As Microsoft continues to expand its offerings in software, services, and devices, the company remains a pivotal player in the tech industry. The Productivity and Business Processes segment, including Microsoft Teams and Office 365, continues to drive growth. With a strong balance sheet and strategic investments, Microsoft is well-positioned to navigate the evolving technology landscape.
Looking ahead, Microsoft’s strategic focus on cloud computing and artificial intelligence is expected to bolster its market leadership. As institutional investors adjust their holdings and insiders capitalize on stock gains, the company remains a focal point for analysts and investors alike. The tech giant’s ability to innovate and adapt will be crucial in maintaining its competitive edge in a rapidly changing industry.
