Microsoft Corporation just got tighter with Fisher Asset Management, Harris Associates, Yacktman Asset Management, First Pacific Advisors and Diamond Hill Capital. According to latest 13F filings, First Pacific Advisors and Diamond Hill Capital raised their positions in the software company, while Harris Associates cut its stake during the second quarter ended June 30.
Hedge Funds’ Moves
Fisher Asset Management, in its most recent 13F filing, disclosed upping its stake in Microsoft by 80,138 shares to 18.30 million shares during the March-June period. The reported value of the holdings was around $962.48 million.
Harris Associates held 16.37 million shares, worth $837.45 million, as of June 30. The investor cut its position in the company by 1.51 million shares during the second quarter.
Yacktman Asset Management trimmed its stake in Microsoft to 12.52 million shares, valued at $640.86 million during the second quarter.
First Pacific Advisors sees value in the stock. The investor added 734,311 more shares to its holding of Microsoft during the last quarter. The fund holds 10.26 million shares, valued at more than $525 million.
Diamond Hill Capital was also bullish on the company during the second quarter. The latest 13F filing shows that the investor boosted its position in the company by 26% to 4.48 million shares, worth more than $229 million.
Founded by Bill Gates in 1975, Microsoft Corporation has market cap of 450.72 billion. It has a price-earnings (P/E) ratio of 27.6. Recently, the company’s Chief Financial Officer Amy Hood unloaded 120,000 shares for an average price of $57.86 per share. Following the transaction, Hood now owns 523,425 shares of the company.
Shares of the company have gained over 3.13% year-to-date, and 25.12% during the past 12 months. The company’s stock is trading up 0.47% in the morning session.
For the fiscal fourth quarter ended June 30, Microsoft reported its financial results on July 19. The company impressed Wall Street by beating estimates on both the top and bottom lines. However, the tech giant posted a 9% decline in gaming revenue. Xbox‘s hardware business isn’t performing well, with hardware revenue falling 33% compared to the same period last year.
The company reported earnings per share of $0.69 on $22.64 billion in revenue, versus consensus estimates of $0.58 in EPS on $22.14 billion in revenue. It had $0.60 in EPS on $22.18 billion in revenue in the same quarter a year ago.
The Intelligent Cloud segment did a great job during the quarter, with Azure revenue increasing by 102%. Intelligent Cloud revenue rose $415 million or 7%, mainly due to higher revenue from server products and cloud services and Enterprise Services.
Microsoft plans to expand its gaming business including software and hardware. At this year’s E3 conference, the company announced two new consoles, including the Xbox One S and Project Scorpio, which is claimed to be the most powerful console ever built. Project Scorpio, the powerful gaming console, will arrive in 2017, with 6 teraflops of GPU delivering a premier console gaming experience including true 4K gaming and high-fidelity virtual reality.
In June, Microsoft announced a deal to acquire LinkedIn for $26.2 billion or $196 per share in cash. The deal is expected to close by the end of this year. To fund the acquisition, the company has raised $19.75 billion through a senior unsecured notes offering, which is the third-largest U.S. corporate bond sale of the year.
Disclosure: Nadeem does not own stock in Microsoft.