Analysis of Franklin Parlapiano Turner & Welch LLC's Stake Reduction in Microsoft Co. (NASDAQ:MSFT)

Portfolio Changes

• Franklin Parlapiano Turner & Welch LLC reduced its stake in Microsoft by 0.9%, selling 217 shares during the fourth quarter.
• The firm now owns 24,656 shares, valued at $10,393,000, representing 2.8% of its portfolio.
• This makes Microsoft the 5th largest position in Franklin's portfolio.

Competitive Landscape

• Christopher J. Hasenberg Inc. increased its stake by 35.7%, adding 25 shares to reach 95 shares worth $39,000.
• IFS Advisors LLC boosted its holdings by 53.8%, purchasing 35 additional shares to own 100 shares valued at $42,000.
• Avondale Wealth Management increased its stake by 144.4%, adding 65 shares to reach 110 shares worth $46,000.
• MidAtlantic Capital Management Inc. and Kieckhefer Group LLC both opened new positions in Microsoft during the third and fourth quarters, respectively.

Institutional Ownership

• Institutional investors collectively own 71.13% of Microsoft's stock, reflecting significant investor confidence.

Analyst Ratings

• Tigress Financial: Upgraded Microsoft to "buy" with a price target raised from $550.00 to $595.00.
• Morgan Stanley: Downgraded price target from $540.00 to $530.00, maintaining an "overweight" rating.
• Cantor Fitzgerald: Reaffirmed "overweight" with a price target of $509.00.
• Guggenheim: Maintained a "neutral" rating.
• UBS Group: Downgraded price target from $525.00 to $510.00, maintaining a "buy" rating.
• Average rating: "Moderate Buy" with an average target price of $510.59.

Stock Performance

• Microsoft shares opened at $391.26, up 1.1% on Friday.
• The stock has a 12-month low of $376.91 and a high of $468.35.
• Market cap: $2.91 trillion.
• P/E ratio: 31.50, PEG ratio: 2.21, Beta: 0.92.

Dividend Update

• Microsoft announced a quarterly dividend of $0.83 per share, payable on June 12, 2024.
• Record date: May 15, 2024; ex-dividend date: May 15, 2024.
• Annualized dividend: $3.32.
• Dividend yield: 0.85%.
• Dividend payout ratio (DPR): 26.73%.

Business Performance

• Microsoft reported QPS earnings of $3.23, beating expectations of $3.15.
• Net margin: 35.43%, Return on Equity (ROE): 33.36%.
• Analysts project EPS of 13.08 for the current year.

Market Implications

• Franklin's stake reduction may indicate a strategic shift or profit-taking, despite Microsoft's strong performance.
• Mixed analyst ratings suggest some uncertainty but overall positive sentiment toward the stock.
• The dividend increase underscores Microsoft's commitment to shareholder value and reflects confidence in its earnings stability.
• Despite short-term price fluctuations, Microsoft's robust financials and market leadership position it as a key player in the tech sector.