IRON Financial LLC has expanded its investment in Microsoft Corporation (NASDAQ: MSFT) by 23.2% during the third quarter of 2023. According to a recent disclosure with the Securities and Exchange Commission (SEC), the institutional investor now holds a total of 6,510 shares of the tech giant after acquiring an additional 1,225 shares. This increase makes Microsoft approximately 1.6% of IRON Financial’s overall portfolio, positioning it as the firm’s 14th largest investment, valued at approximately $3,372,000.
Several other institutional investors have also adjusted their positions in Microsoft recently. For instance, WFA Asset Management Corp raised its holdings by 27.0% during the first quarter, now owning 1,016 shares worth $427,000 after purchasing 216 shares last quarter. Similarly, Ironwood Wealth Management LLC increased its stake by 0.3% in the second quarter, resulting in ownership of 12,658 shares valued at $5,658,000.
Discipline Wealth Solutions LLC saw a significant boost of 410.4% in its holdings during the third quarter, owning 2,659 shares valued at $1,144,000 after acquiring 2,138 shares. Wealth Group Ltd. and Eagle Capital Management LLC also increased their positions, with Wealth Group Ltd. now owning 2,374 shares worth $1,000,000 and Eagle Capital Management holding 23,097 shares valued at $9,735,000.
As it stands, approximately 71.13% of Microsoft stock is held by hedge funds and institutional investors.
Recent Insider Activity and Microsoft Stock Performance
In other developments, insider trading activity has been noteworthy. CEO Judson Althoff sold 12,750 shares on December 2, 2023, at an average price of $491.52, totaling $6,266,880. This sale reduced his ownership to 129,349 shares, valued at around $63,577,620.48, marking an 8.97% decrease in his stake. Executive Vice President Takeshi Numoto also sold 2,850 shares on December 4, 2023, for approximately $1,364,352, representing a 4.86% decrease in his holdings.
Over the past 90 days, corporate insiders have sold a total of 54,100 shares worth $27,598,872, with only 0.03% of the stock now owned by insiders.
Microsoft’s stock experienced a slight decline of 0.7%, opening at $430.29 on the latest trading day. The company has a current market capitalization of $3.20 trillion, with a price-to-earnings (P/E) ratio of 26.91 and a price-to-earnings-growth (PEG) ratio of 1.74. The stock has a beta of 1.07, indicating a volatility level slightly higher than the market.
Over the past year, Microsoft shares have fluctuated significantly, with a 12-month low of $344.79 and a high of $555.45. The firm’s 50-day simple moving average stands at $475.83, while the 200-day average is $499.66. Additionally, Microsoft maintains a low debt-to-equity ratio of 0.09, with both current and quick ratios at 1.39, indicating solid liquidity.
Financial Results and Dividend Announcement
Microsoft recently reported its earnings results for the quarter ending January 28, 2024. The company achieved earnings per share (EPS) of $4.14, surpassing analysts’ expectations of $3.86 by $0.28. Revenue for the quarter reached $81.27 billion, exceeding the anticipated $80.28 billion.
The company’s net margin stood at 39.04%, with a return on equity of 32.34%. Compared to the same quarter last year, Microsoft’s revenue increased by 16.7%, with the previous year showing an EPS of $3.23. Analysts predict that Microsoft Corporation will report an EPS of $13.08 for the current fiscal year.
In a significant announcement, Microsoft declared a quarterly dividend of $0.91 per share, payable on March 12, 2024. Investors on record as of February 19, 2024, will receive this dividend, which amounts to an annualized dividend of $3.64 and a yield of 0.8%. The ex-dividend date is also set for February 19, 2024, and the company’s dividend payout ratio is currently at 22.76%.
Microsoft Corporation, headquartered in Redmond, Washington, was founded in 1975 by Bill Gates and Paul Allen. It is a leading global technology company, known for developing software products and services across various sectors, including personal computing, productivity software, and cloud infrastructure. Microsoft’s product lineup includes the widely-used Windows operating system and the Microsoft 365 suite of productivity tools.
