Microsoft Corporation (MSFT) Plans to Recall Surface Pro Power Supplies Due to Overheating

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If you own a Microsoft Corporation (NASDAQ:MSFT) Surface Pro, Surface Pro 2 or Surface Pro 3 which you purchased prior to July 2015, you will soon be able to exchange your current power cord for a new one. This is due to overheating issues that these cords have been shown to have, and Microsoft plans to take no chances.

“As a result of damage caused by AC power cords being wound too tightly, twisted or pinched over an extended period of time, a very small proportion of Surface Pro customers have reported issues with their AC power cord,” Microsoft told ZDNet. “We will be releasing details of how customers can obtain a free replacement cable shortly.”

While not many details on the recall were issued yet, Microsoft Corporation (NASDAQ:MSFT) wants to avoid any fire hazards that may exist because of these potentially faulty cords. This Friday, the company plans to release more official details on the recall.

The stock decreased 0.84% or $0.43 during the last trading session, hitting $50.56. Approximately 13,508 shares traded hands. MSFT shares have risen 11.17% since June 15, 2015 and are currently uptrending. It has outperformed the S&P500 by 20.04%.

From a total of 18 analysts covering Microsoft Corporation (NASDAQ:MSFT) stock, 14 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 78% of the ratings are positive. The highest target price is $66 while the lowest target price is $20. The mean of all analyst targets is $54.87 which is 8.52% above today’s ($50.56) stock price. Microsoft Corporation was the topic of 36 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Morgan Stanley upgraded shares on January 13 to a “Overweight” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $47.60 target share price in their report from a September 2. Barclays Capital maintained MSFT stock in a recent report from January 6 with a “Overweight” rating. Global Equities Research maintained the rating on August 28. Global Equities Research has a “Overweight” rating and a $50 price target on shares. Finally, Goldman Sachs upgraded the stock to a “Neutral” rating in a report they issued on a December 18.

The institutional sentiment increased to 1.08 in Q2 2015. It’s up 0.32, from 0.76 in 2015Q2. The ratio is positive, as 69 funds sold all their Microsoft Corporation shares they owned while 801 reduced their positions. 93 funds bought stakes while 843 increased their total positions. Institutions now own 5.20 billion shares which is 8.27% less than the previous share count of 5.67 billion in 2015Q2.

Cook & Bynum Capital Management Llc holds 25.5% of its total portfolio in Microsoft Corporation, equating to 717,081 shares. Rwwm Inc. owns 895,414 shares representing 19.69% of their total US portfolio. Moreover, Valueact Holdings L.P. has 19.37% of their total portfolio invested in the company, equating to 75.27 million shares. The California-based Smithwood Advisers L.P. has a total of 17.28% of their portfolio invested in the stock. Deccan Value Investors L.P., a Connecticut-based fund reported 2.26 million shares owned.

Since April 28, 2015, the stock had 0 buys, and 4 insider sales for a total of $370.34 million in net activity. Gates William H Iii sold 4.00M shares worth $185.75M. Turner Brian Kevin sold 69,158 shares worth $3.16 million. Capossela Christopher C sold 4,485 shares worth $218,464. Brod Frank H sold 4,500 shares worth $215,294.

Microsoft Corporation is engaged in developing, licensing and supporting a range of software services and products. The company has a market cap of $407.30 billion. The Firm also creates and sells hardware, and delivers online advertising to the customers. It has 33.97 P/E ratio. The Firm operates in five divisions: Devices and Consumer Licensing, D&C Hardware, D&C Other, Commercial Licensing, and Commercial Other.

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