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

On December 30, 2024, it was reported that Edge Financial Advisors LLC has taken a new position in Microsoft Co. (NASDAQ:MSFT) during the third quarter of this year. According to the firm’s recent 13F filing with the Securities and Exchange Commission (SEC), Edge Financial Advisors acquired 3,547 shares of Microsoft, representing an investment valued at around $1,526,000. This acquisition positions Microsoft as approximately 1.4% of Edge Financial Advisors’ total holdings, making it the 29th largest position within their portfolio.

In addition to Edge Financial Advisors, other institutional investors have also modified their stakes in Microsoft recently. Rebalance LLC increased its position by 0.7% in the second quarter, now owning 3,451 shares valued at $1,542,000 after purchasing 24 additional shares. Similarly, First National Bank Sioux Falls raised its holdings by 0.4%, bringing its total to 6,340 Microsoft shares valued at $2,834,000. Another investor, BCK Partners Inc., bumped its stake by 1.8% during the third quarter, now holding 1,353 shares worth $582,000 after buying 24 additional shares. Flagship Private Wealth LLC saw a 2.8% increase in its position, now owning 913 shares worth $408,000 after acquiring 25 shares last quarter. Massachusetts Wealth Management also reported a 0.3% increase, resulting in ownership of 9,640 shares valued at $4,309,000. Collectively, institutional investors hold around 71.13% of Microsoft’s total shares.

Analyst Ratings and Price Targets

Several equity research analysts have recently provided their insights on Microsoft shares. For instance, Sanford C. Bernstein lowered their price target from $501.00 to $500.00, rating the company as “outperform” in their note dated October 25. The Goldman Sachs Group also adjusted their target downward from $515.00 to $500.00, assigning a “buy” rating on October 10. Conversely, KeyCorp raised their target from $490.00 to $505.00, while BMO Capital Markets reduced theirs from $500.00 to $495.00. Meanwhile, UBS Group increased Microsoft’s target from $500.00 to $525.00, maintaining a “buy” rating. In total, three analysts have rated Microsoft shares as a hold, while twenty-seven analysts have given them a buy rating. According to MarketBeat.com, the consensus rating for Microsoft is a “Moderate Buy” with an average price target of $509.90.

Insider Trading Activities

In related news, there have been some notable insider transactions. CMO Takeshi Numoto sold 1,000 shares on November 22 at an average price of $414.72, resulting in a total sale of $414,720. Following this transaction, Numoto retains 57,511 shares valued at approximately $23,850,961.92, indicating a decrease of 1.71% in his ownership. Additionally, EVP Christopher David Young executed a sale of 7,200 shares on November 12 at an average price of $423.66, which amounted to $3,050,352. Following this sale, he holds 103,366 shares worth around $43,792,039.56, representing a decrease of 6.51% in his stake. In total, insiders sold 41,200 shares during the last quarter, totaling $17,383,892. Corporate insiders own only about 0.03% of Microsoft’s shares.

Current Stock Performance

On Monday, shares of Microsoft (NASDAQ:MSFT) opened at $430.53, with a 50-day moving average of $428.90 and a 200-day moving average of $428.85. The company maintains a current ratio of 1.30 and a quick ratio of 1.29, alongside a low debt-to-equity ratio of 0.15. With a market capitalization of $3.20 trillion, Microsoft has a price-to-earnings (P/E) ratio of 35.52 and a P/E-to-growth ratio of 2.37. Over the last year, Microsoft’s stock hit a low of $366.50 and a peak of $468.35.

Recently, Microsoft also published its quarterly earnings results on October 30, showing earnings per share (EPS) of $3.30, surpassing analysts' expectations of $3.10. The company reported substantial revenue of $65.59 billion, which exceeded the forecasted $64.57 billion, marking a significant year-over-year increase of 16.0%.

Dividend and Buyback Programs

In terms of shareholder returns, Microsoft plans to distribute a quarterly dividend of $0.83, scheduled for payment on March 13, 2025. The record date for shareholders is February 20, 2025, which results in an annualized dividend amounting to $3.32 and a yield of 0.77%. The company’s payout ratio is 27.39%. Furthermore, Microsoft’s board recently approved a $60 billion stock buyback plan, allowing the firm to repurchase up to 1.9% of its outstanding shares through open market transactions. This buyback is generally interpreted as a signal that the company’s board believes its stock is undervalued.

About Microsoft

Microsoft Corporation is a leading developer and provider of software, services, devices, and solutions globally. Its various segments include productivity and business processes which offer applications like Office, Microsoft Teams, and more, in addition to its consumer services that encompass Microsoft 365 subscriptions and other office services.

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