Source Financial Advisors LLC Reduces Stake in Microsoft Co. (NASDAQ:MSFT)

On January 12th, 2025, it was reported that Source Financial Advisors LLC has decreased its stake in Microsoft Co. (NASDAQ:MSFT – Free Report) by 0.5% during the third quarter of the year. According to their latest filing with the SEC, the fund held 9,593 shares of the software company after selling 53 shares in the recent quarter. This investment in Microsoft constitutes approximately 1.2% of Source Financial Advisors LLC's portfolio, making it their 19th largest holding. By the end of the most recent reporting period, the value of Source Financial Advisors LLC’s stake in Microsoft was estimated at $4,128,000.

A number of other institutional investors have also made changes to their holdings in Microsoft recently. For instance, Christopher J. Hasenberg Inc increased its investment in the company by 169.2% during the second quarter, bringing its total to 70 shares valued at $31,000 after acquiring an additional 44 shares. Quarry LP made a new investment in Microsoft during the same quarter, valued at approximately $45,000. Innealta Capital LLC entered the market with a new position in Microsoft valued around $75,000. Carolina Wealth Advisors LLC raised its stake in Microsoft by 10.1% during the third quarter, now owning 338 shares worth $145,000 after buying an extra 31 shares. Additionally, MayTech Global Investments LLC bought into Microsoft for around $200,000 during the second quarter. It is noteworthy that institutional investors and hedge funds collectively own 71.13% of Microsoft’s stock.

Current Price Performance of Microsoft

As of Friday, Microsoft Co. opened at $418.95. The stock has seen a 12-month low of $380.38 and a high of $468.35. Financial metrics for the company include a quick ratio of 1.29, a current ratio of 1.30, and a modest debt-to-equity ratio of 0.15. Microsoft has a market capitalization of $3.11 trillion, along with a P/E ratio of 34.57, a PEG ratio of 2.37, and a beta of 0.90. The stock’s fifty-day moving average sits at $428.83, while the 200-day moving average is at $427.39.

On October 30th, Microsoft released its latest earnings report, revealing earnings per share of $3.30 for the quarter, which exceeded the analysts' consensus estimate of $3.10 by $0.20. The total revenue reported was $65.59 billion, outperforming expectations of $64.57 billion. The company achieved a return on equity of 34.56% and a net margin of 35.61%, with revenue increasing by 16.0% year-over-year. Last year, during the same period, the EPS was reported at $2.99. Analysts predict Microsoft will generate an EPS of 12.93 for the current fiscal year.

Microsoft's Board of Directors approved a significant share buyback program on September 16th, which allows the company to repurchase $60.00 billion in shares. This plan aims to acquire up to 1.9% of its shares through market purchases, often perceived as an indication that the board views the stock as undervalued.

Dividend Declaration by Microsoft

In a recent announcement, Microsoft disclosed a quarterly dividend which is set to be paid on Thursday, March 13th. Shareholders on record as of February 20th will receive a dividend of $0.83 per share, equating to an annualized dividend of $3.32 and providing a yield of 0.79%. The ex-dividend date is also February 20th, and Microsoft's current dividend payout ratio is 27.39%.

Insider Sales at Microsoft

In other recent developments, Executive Vice President Judson Althoff sold 25,000 shares of Microsoft on November 22nd, with an average sale price of $417.00, totaling around $10,425,000. Following this transaction, he retains 117,294 shares with an estimated value of $48,911,598, representing a 17.57% reduction in his holdings. The sale details are documented in a filing with the SEC. Similarly, Chief Marketing Officer Takeshi Numoto sold 2,500 shares on December 9th for approximately $1,118,525 at an average price of $447.41, reducing his ownership by 4.82%. Collectively, in the last ninety days, insiders have sold shares amounting to $17,383,892, with only 0.03% of the stock still held by insiders.

Analysts' Outlook on Microsoft

Analysts have been actively issuing reports regarding Microsoft’s stock. JPMorgan Chase & Co. has lowered its price target from $470.00 to $465.00 while maintaining an “overweight” rating as of October 31st. In the same vein, Loop Capital increased its target price to $550.00, affirming a “buy” rating on December 23rd. Truist Financial reiterated a “buy” rating and set a price target of $600.00 on October 28th. Meanwhile, TD Cowen downgraded its objective from $495.00 to $475.00, but still rated it as a “buy”. Morgan Stanley raised its target price from $506.00 to $548.00 with an “overweight” rating. The consensus among analysts indicates a moderate buy rating, with an average target price set at $511.62, as per MarketBeat.com.

Microsoft Company Overview

Company Profile

(Free Report) Microsoft Corporation is engaged in developing and supporting software, services, devices, and solutions on a global scale. The company’s Productivity and Business Processes segment provides a range of services, including Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Microsoft 365 Copilot, among others.

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