Edge Financial Advisors LLC Takes New Stake in Microsoft Co. (NASDAQ:MSFT)

On December 30th, 2024, Edge Financial Advisors LLC announced its acquisition of a new stake in Microsoft Co. (NASDAQ:MSFT – Free Report) during the third quarter, as revealed by their latest 13F filing with the SEC. The institutional investor acquired 3,547 shares of the renowned software company, which have an estimated value of about $1,526,000. This investment constitutes around 1.4% of Edge Financial Advisors' total holdings, ranking Microsoft as their 29th largest position.

In recent moves, other hedge funds have also adjusted their stakes in Microsoft. For instance, Rebalance LLC increased its position by 0.7% in the second quarter, now holding 3,451 shares worth approximately $1,542,000 after acquiring an additional 24 shares. Similarly, First National Bank Sioux Falls expanded its holdings by 0.4% during the second quarter, resulting in possession of 6,340 shares valued at $2,834,000, again after purchasing an extra 24 shares. Additionally, BCK Partners Inc. raised its stake by 1.8% in the third quarter, now owning 1,353 shares worth $582,000. Flagship Private Wealth LLC improved its position by 2.8% in the second quarter, obtaining 913 shares valued at $408,000 after buying another 25. Lastly, Massachusetts Wealth Management also increased its stake by 0.3%, holding 9,640 shares valued at approximately $4,309,000 after a purchase of 25 shares. Overall, institutional investors and hedge funds collectively own 71.13% of Microsoft's stock.

Analyst Ratings for Microsoft

Equity research analysts have recently provided insights on Microsoft’s stock performance. Sanford C. Bernstein has lowered its target price from $501.00 to $500.00 while maintaining an “outperform” rating. The Goldman Sachs Group has also reduced its price objective from $515.00 to $500.00 and continues to advise a “buy” rating. KeyCorp raised its target from $490.00 to $505.00, noting an “overweight” rating. Meanwhile, BMO Capital Markets has cut its price target from $500.00 to $495.00, keeping an “outperform” rating. UBS Group, however, increased its target from $500.00 to $525.00, designating a “buy” rating. The consensus from analysts shows three hold ratings and twenty-seven buy ratings, resulting in an overall “Moderate Buy” rating and an average price target of $509.90 according to MarketBeat.com.

Insider Trading Activities

In insider news, CMO Takeshi Numoto recently sold 1,000 shares of Microsoft stock on November 22nd, transaction valued at $414,720. Following this sale, Numoto holds 57,511 shares currently valued at approximately $23,850,961.92, reflecting a 1.71% decrease in his stake. Additionally, EVP Christopher David Young sold 7,200 shares on November 12th, with a value exceeding $3 million. Post-transaction, he retains 103,366 shares now worth about $43,792,039.56, marking a 6.51% drop in his ownership in the company. In total, corporate insiders sold 41,200 shares worth around $17,383,892 in the last quarter, and corporate insiders hold just 0.03% of the company’s shares.

Current Stock Performance

The stock price for Microsoft (NASDAQ:MSFT) opened at $430.53 recently. The company’s moving averages stand at 50 days of $428.90 and 200 days at $428.85. Microsoft features a current ratio of 1.30, a quick ratio of 1.29, and a low debt-to-equity ratio of 0.15. The market capitalization is approximately $3.20 trillion, with a P/E ratio of 35.52 and a P/E/G ratio of 2.37. The stock's twelve-month range varies from a low of $366.50 to a high of $468.35.

Microsoft recently announced its quarterly earnings report on October 30th, where it recorded $3.30 earnings per share (EPS), surpassing the consensus estimate of $3.10 by $0.20. The company achieved a remarkable return on equity at 34.56% and maintained a net margin of 35.61%. Total revenue for the quarter was $65.59 billion, higher than expected figures of $64.57 billion, and represented a 16% increase compared to the same period last year. Analysts predict that Microsoft will post an EPS of 12.93 for the current fiscal year.

Dividend and Buyback Announcements

Recently, Microsoft declared a quarterly dividend of $0.83, scheduled to be paid to shareholders on March 13th. Investors on record as of February 20th will be eligible for the dividend, which translates to an annualized payout of $3.32 and a yield of 0.77%. The ex-dividend date for this dividend is similarly February 20th, and the company’s payout ratio is noted at 27.39%.

Additionally, Microsoft confirmed the approval of a stock buyback plan on September 16th, allowing the repurchase of up to $60.00 billion in shares. This suggests that the board believes the shares are currently undervalued in the market.

Understanding Microsoft Corporation

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Microsoft Corporation is a global leader in software, services, devices, and solutions. The company’s diverse segments include productivity tools and business processes, which offer services such as Office, Teams, and Microsoft 365 consumer subscriptions, among others.

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