Cardinal Capital Management cut its stake in shares of Microsoft Co. (NASDAQ:MSFT) by 2.2% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 75,528 shares of the software giant’s stock after selling 1,711 shares during the quarter. Microsoft makes up approximately 2.9% of Cardinal Capital Management’s portfolio, making the stock its 2nd biggest position. Cardinal Capital Management’s holdings in Microsoft were worth $10,500,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in shares of Microsoft by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 613,005,516 shares of the software giant’s stock valued at $82,118,218,000 after purchasing an additional 7,724,483 shares during the period. Northern Trust Corp raised its stake in Microsoft by 0.4% during the 2nd quarter. Northern Trust Corp now owns 96,567,563 shares of the software giant’s stock worth $12,936,190,000 after buying an additional 385,074 shares during the period. Nuveen Asset Management LLC raised its stake in Microsoft by 2,651.8% during the 2nd quarter. Nuveen Asset Management LLC now owns 67,353,275 shares of the software giant’s stock worth $9,022,645,000 after buying an additional 64,905,685 shares during the period. Janus Henderson Group PLC raised its stake in Microsoft by 0.7% during the 2nd quarter. Janus Henderson Group PLC now owns 52,986,086 shares of the software giant’s stock worth $7,097,675,000 after buying an additional 342,648 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in Microsoft by 2.3% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 34,368,268 shares of the software giant’s stock worth $4,603,974,000 after buying an additional 782,124 shares during the period. 72.17% of the stock is currently owned by hedge funds and other institutional investors.
A number of research analysts recently weighed in on MSFT shares. Argus upped their price target on Microsoft to $158.00 and gave the stock a “buy” rating in a research note on Thursday, July 25th. Royal Bank of Canada started coverage on Microsoft in a research note on Friday, October 18th. They set an “outperform” rating and a $160.00 price target on the stock. Goldman Sachs Group reaffirmed a “buy” rating and set a $151.00 price target on shares of Microsoft in a research note on Wednesday. Credit Suisse Group set a $155.00 price target on Microsoft and gave the stock a “buy” rating in a research note on Wednesday. Finally, Mizuho set a $152.00 price target on Microsoft and gave the stock a “buy” rating in a research note on Friday, September 6th. Two research analysts have rated the stock with a hold rating, thirty have issued a buy rating and one has given a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus target price of $155.69.
Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, October 23rd. The software giant reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.24 by $0.14. The firm had revenue of $33.06 billion during the quarter, compared to analyst estimates of $32.24 billion. Microsoft had a return on equity of 39.26% and a net margin of 31.18%. The company’s revenue for the quarter was up 13.7% on a year-over-year basis. During the same period in the previous year, the company posted $1.14 EPS. On average, equities analysts forecast that Microsoft Co. will post 5.21 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st will be issued a dividend of $0.51 per share. This is a positive change from Microsoft’s previous quarterly dividend of $0.46. This represents a $2.04 dividend on an annualized basis and a yield of 1.46%. The ex-dividend date is Wednesday, November 20th. Microsoft’s payout ratio is currently 38.74%.
Microsoft declared that its board has initiated a stock repurchase plan on Wednesday, September 18th that allows the company to repurchase $40.00 billion in shares. This repurchase authorization allows the software giant to repurchase up to 3.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.
In other news, insider Frank H. Brod sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, July 29th. The stock was sold at an average price of $141.05, for a total value of $564,200.00. Following the completion of the transaction, the insider now directly owns 64,152 shares of the company’s stock, valued at $9,048,639.60. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CMO Christopher C. Capossela sold 3,372 shares of the company’s stock in a transaction that occurred on Thursday, August 1st. The shares were sold at an average price of $138.06, for a total value of $465,538.32. Following the completion of the transaction, the chief marketing officer now directly owns 136,623 shares of the company’s stock, valued at $18,862,171.38. The disclosure for this sale can be found here. Insiders have sold a total of 318,757 shares of company stock valued at $43,735,918 over the last three months. Corporate insiders own 1.39% of the company’s stock.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises.
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