Fund Advisors of America Inc FL Purchases 4,662 Shares of Microsoft Corporation $MSFT

Key Points

• Fund Advisors of America Inc. FL initiated a Microsoft position by purchasing 4,662 shares valued at approximately $1.74 million. Microsoft represents 1.6% of the firm’s portfolio, while institutional investors collectively own 71.13% of the stock.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, beating analyst expectations. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains broadly positive, with 41 Buy ratings and a consensus “Moderate Buy” rating alongside an average price target of $581.24. However, insider selling, elevated AI infrastructure costs and recent market pressure on AI shares present near-term risks.

Fund Advisors of America Inc FL purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 4,662 shares of the software giant's stock, valued at approximately $1,739,000. Microsoft accounts for 1.6% of Fund Advisors of America Inc FL's holdings, making the stock its 18th biggest position.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Auto Owners Insurance Co lifted its holdings in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock valued at $29,073,486,000 after purchasing an additional 60,009,531 shares in the last quarter. Amundi raised its holdings in shares of Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after purchasing an additional 2,784,809 shares in the last quarter. Hsbc Holdings PLC lifted its position in shares of Microsoft by 7.8% during the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock valued at $10,715,379,000 after purchasing an additional 1,599,412 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Microsoft by 64.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock worth $8,982,083,000 after purchasing an additional 9,493,778 shares during the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft unveiled its Maia 300 custom AI accelerator, designed for multi-gigawatt deployment across Azure data centers. Management says it can deliver 40% more tokens per megawatt than a GPU-based system, potentially lowering inference costs and reducing reliance on Nvidia and AMD hardware. What Could Microsoft Gain From Its Maia 300 AI Chip Rollout?
• Positive Sentiment: Investor optimism remains focused on Azure growth, Microsoft’s AI backlog, and more than $130 billion in reported data-center leases. The scale of commitments supports long-term demand for Azure and Copilot, although it also raises capital-spending risks. Microsoft Reports $130 Billion in Data Center Leases
• Positive Sentiment: Barclays raised its Microsoft price target to $600 from $512 and expects the upcoming fiscal first-quarter report to show improving differentiation in software. Earnings are scheduled for October 28. Microsoft Price Target Raised by Barclays
• Neutral Sentiment: Microsoft’s Azure chief reportedly seeks at least 20% cost cuts in an effort to offset soaring AI data-center expenses. The move could improve efficiency and margins, but it also highlights pressure from the company’s aggressive investment cycle. Microsoft Weighs 20% Cost Cuts in Azure
• Neutral Sentiment: Microsoft is introducing new AI-enabled Surface devices and an Xbox Nano Controller, supporting its broader push to put generative AI into consumer hardware. These products are strategically relevant but are unlikely to materially affect near-term results.
• Negative Sentiment: Hot inflation data pushed bond yields higher and triggered a broad selloff in AI-related shares, increasing concern that expensive AI infrastructure projects may face higher financing costs and tougher valuation scrutiny.
• Negative Sentiment: Phillip Securities downgraded Microsoft to “hold,” while Erste Group made a minor reduction to its FY2028 earnings forecast. These actions add to near-term caution following the stock’s strong run.
• Negative Sentiment: EVP Amy Hood sold 7,305 shares worth approximately $4.0 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance and represents only 1.3% of her holdings, it is a limited bearish signal.
• Negative Sentiment: Reports that Microsoft issued security updates addressing more than 1,400 vulnerabilities could renew concerns about cybersecurity exposure, though patching the flaws is ultimately protective.

Insider Buying and Selling

In related news, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 150,314 shares of company stock valued at $75,404,992 over the last three months. 0.03% of the stock is owned by corporate insiders.

Microsoft Price Performance

MSFT opened at $533.69 on Thursday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $3.96 trillion, a P/E ratio of 29.72, a PEG ratio of 1.74 and a beta of 1.10. The stock has a 50-day moving average price of $504.15 and a 200-day moving average price of $438.68. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.65 EPS. Equities analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MSFT. Bank of America increased their price target on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. Mizuho cut their price objective on Microsoft from $515.00 to $490.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 15th. Melius Research set a $665.00 price objective on Microsoft and gave the stock a "buy" rating in a research report on Monday, October 5th. Oppenheimer upped their price objective on Microsoft from $515.00 to $570.00 and gave the company an "outperform" rating in a research note on Tuesday, September 22nd. Finally, Tigress Financial raised their target price on Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Forty-one analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $581.24.

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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