Microsoft Corporation (MSFT) Shares Up Despite Pitiful Windows Phone Outlook From the IDC


Microsoft Corporation (NASDAQ:MSFT) shares are trading up this morning even after the International Data Corporation (IDC) presented figures yesterday showing that the smartphone market, and more specifically the Windows Phone market looks to be dampening.

Microsoft Corporation (NASDAQ:MSFT) has struggled to keep up with the Apples and Samsungs of the world, in terms of the mobile phone market. With the smartphone market only growing by 9.8% this year, according to the IDC, things don’t look all the great for the company’s hopes for expanding upon this market. It is the first time ever that the growth of the market fell into the single digits.

That, on top of a Windows Phone decline of 10.2% on the year, despite the launch of Windows 10 a few months back, could create for quite the challenge to Microsoft Corporation (NASDAQ:MSFT).The stock is up 1.56% or $0.84 following the news, hitting $55.04 per share. About 7.50M shares traded hands. MSFT has risen 11.39% since May 1, 2015 and is uptrending. It has outperformed the S&P500 by 14.17%.

From a total of 15 analysts covering Microsoft Corporation (NASDAQ:MSFT) stock, 11 rate it a “Buy”, 2 a “Sell”, and 2 a “Hold”. This means that 73% of the ratings are positive. The highest target price is $65 while the lowest target price is $20. The mean of all analyst targets is $51.79 which is -5.90% below today’s ($55.04) stock price. Microsoft Corporation was the topic of 29 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Raymond James upgraded shares on November 30 to a “Strong Buy” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $47.60 target share price in their report from a September 2. Piper Jaffray maintained MSFT stock in a recent report from November 10 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, Bank of America upgraded the stock to a “Buy” rating in a report they issued on an October 23.

The institutional sentiment decreased to 0.76 in Q2 2015. It’s down 0.23, from 0.99 in 2015Q1. The ratio fall, as 80 funds sold all their Microsoft Corporation shares they owned while 965 reduced their positions. 103 funds bought stakes while 688 increased their total positions. Institutions now own 5.67 billion shares which is 4.58% less than the previous share count of 5.94 billion in 2015Q1.

Deccan Value Investors L.P. holds 28.05% of its total portfolio in Microsoft Corporation, equating to 2.26 million shares. Cook & Bynum Capital Management Llc owns 717,081 shares representing 22% of their total US portfolio. Moreover, Rwwm Inc. has 20.52% of their total portfolio invested in the company, equating to 885,842 shares. The California-based Valueact Holdings L.P. has a total of 17.5% of their portfolio invested in the stock. Sarbit Advisory Services Inc., a Manitoba – Canada-based fund reported 2.68 million shares owned.

Since April 28, 2015, the stock had 0 insider purchases, and 4 selling transactions for a total of $370.34 million in net activity. Gates William H Iii sold 4.00M shares worth $185.75 million. 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 $439.69 billion. The Firm also creates and sells hardware, and delivers online advertising to the customers. It has 36.98 P/E ratio. The Firm operates in five divisions: Devices and Consumer Licensing, D&C Hardware, D&C Other, Commercial Licensing, and Commercial Other.