Legacy Edge Advisors LLC Makes New $16.20 Million Investment in Microsoft Corporation $MSFT

Key Points

• Legacy Edge Advisors LLC opened a new position in Microsoft during the fourth quarter, buying 33,488 shares valued at about $16.2 million. Microsoft now makes up roughly 1.8% of the firm’s portfolio and is its 15th-largest holding.
• Microsoft reported better-than-expected quarterly results, with EPS of $4.27 versus estimates of $4.06 and revenue of $82.89 billion, up 18.3% year over year. The company also posted strong profitability, including a 39.34% net margin.
• The stock has also been supported by bullish analyst and investor sentiment, with 39 analysts rating it a Buy and an average price target of $560.88. Microsoft recently declared a quarterly dividend of $0.91 per share, payable June 11.

Legacy Edge Advisors LLC purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 33,488 shares of the software giant's stock, valued at approximately $16,196,000. Microsoft comprises approximately 1.8% of Legacy Edge Advisors LLC's investment portfolio, making the stock its 15th largest holding.

Several other hedge funds also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC boosted its position in shares of Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares during the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Microsoft in the third quarter worth approximately $38,000. Fairway Wealth LLC boosted its position in shares of Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after acquiring an additional 66 shares during the last quarter. LSV Asset Management acquired a new stake in shares of Microsoft in the fourth quarter worth approximately $44,000. Finally, Sellwood Investment Partners LLC acquired a new stake in shares of Microsoft in the third quarter worth approximately $49,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Trading Up 5.4%

MSFT opened at $450.24 on Friday. The firm has a market capitalization of $3.34 trillion, a P/E ratio of 26.80, a P/E/G ratio of 1.62 and a beta of 1.10. The firm's 50 day moving average is $402.09 and its 200-day moving average is $434.62. Microsoft Corporation has a 52-week low of $356.28 and a 52-week high of $555.45. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.06 by $0.21. The company had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The business's quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter last year, the firm posted $3.46 earnings per share. Analysts expect that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, May 21st. Microsoft's payout ratio is 21.67%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and Nvidia teased “a new era of PC,” with reports pointing to new Surface hardware and a possible AI-focused chip announcement at Computex, which could refresh the Windows/PC upgrade cycle. Article Title
• Positive Sentiment: Reports that Microsoft will unveil a new coding model and other in-house AI tools at next week’s Build conference reinforce the company’s AI monetization story and support sentiment around GitHub Copilot and Azure demand. Article Title
• Positive Sentiment: Microsoft’s latest earnings backdrop remains solid, with revenue growth of 18.3% and better-than-expected EPS, helping investors justify the stock’s premium valuation.
• Positive Sentiment: Several bullish writeups and analyst commentary say MSFT still has room to run because Azure, M365 cloud, and AI revenue are expanding faster than the broader software market. Article Title
• Neutral Sentiment: Microsoft is also drawing attention from investors, fund managers, and even congressional buyers, which supports the stock’s defensive-growth reputation but does not change fundamentals on its own.
• Negative Sentiment: A TechCrunch report says Microsoft is facing backlash for threatening a security researcher over unpatched bugs and code disclosure, adding some reputational noise ahead of Build. Article Title

Analyst Ratings Changes

Several research firms recently issued reports on MSFT. Sanford C. Bernstein raised their target price on shares of Microsoft from $641.00 to $646.00 and gave the stock an "outperform" rating in a research report on Thursday, April 30th. Arete Research raised their target price on shares of Microsoft from $730.00 to $870.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Mizuho decreased their target price on shares of Microsoft from $620.00 to $515.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 14th. HSBC decreased their target price on shares of Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. Finally, Stifel Nicolaus lifted their price target on shares of Microsoft from $392.00 to $415.00 and gave the company a "hold" rating in a research report on Thursday, April 30th. Thirty-nine investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and an average price target of $560.88.

Insiders Place Their Bets

In related news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction on Friday, March 6th. The stock was sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of the sale, the executive vice president owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.03% of the stock is currently owned by insiders.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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