Microsoft Corporation $MSFT Stock: IFP Advisors Inc Raises Holdings

Key Points

• IFP Advisors increased its Microsoft stake by 3.2% in the second quarter, adding 5,662 shares to bring its position to 180,462 shares, valued at about $67.3 million.
• Institutional investors own 71.13% of Microsoft shares, with several large funds also adding or initiating positions during recent quarters.
• Microsoft beat quarterly earnings and revenue estimates, while raising its quarterly dividend from $0.91 to $0.98 per share. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $609.54.

IFP Advisors Inc increased its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 3.2% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 180,462 shares of the software giant's stock after purchasing an additional 5,662 shares during the period. Microsoft accounts for about 1.2% of IFP Advisors Inc's holdings, making the stock its 5th biggest position. IFP Advisors Inc's holdings in Microsoft were worth $67,316,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Bank of America Corp DE purchased a new stake in shares of Microsoft in the second quarter valued at $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Microsoft by 0.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after purchasing an additional 543,172 shares in the last quarter. Legal & General Group Plc purchased a new stake in Microsoft during the 2nd quarter worth about $18,306,443,000. Amundi increased its position in Microsoft by 12.0% during the 2nd quarter. Amundi now owns 46,694,778 shares of the software giant's stock worth $17,418,076,000 after purchasing an additional 5,019,702 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Microsoft by 10.5% in the 1st 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 during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Analyst Upgrades and Downgrades

MSFT has been the topic of a number of recent research reports. Sanford C. Bernstein upped their target price on shares of Microsoft from $662.00 to $722.00 and gave the company an "outperform" rating in a report on Thursday, October 29th. UBS Group set a $700.00 price target on shares of Microsoft in a report on Thursday, October 29th. Scotiabank lifted their price target on shares of Microsoft from $625.00 to $650.00 and gave the stock a "sector outperform" rating in a report on Thursday, October 29th. Bank of America boosted their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. Finally, Griffin Securities downgraded shares of Microsoft from a "buy" rating to a "neutral" rating in a research note on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $609.54.

Microsoft Stock Performance

NASDAQ MSFT opened at $520.99 on Wednesday. The business's 50-day moving average price is $514.06 and its 200 day moving average price is $438.92. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $551.15. The company has a market capitalization of $3.87 trillion, a PE ratio of 27.19, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05. The company has a current ratio of 1.22, a quick ratio of 1.21 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. The firm had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The firm's quarterly revenue was up 18.8% on a year-over-year basis. During the same period last year, the company earned $4.13 EPS. On average, research analysts predict that Microsoft Corporation will post 19.86 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is currently 19.00%.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure’s reported 48% growth helped lift Microsoft amid an AI-related tech rebound. Commentary also points to AI demand exceeding available capacity and argues Microsoft can fund its expansion from strong cash flow—an advantage as investors scrutinize rivals’ borrowing and spending. Article: What's Going on with Microsoft Stock on Tuesday? Article: Why Microsoft Was Rewarded for Spending Less on AI
• Positive Sentiment: Microsoft’s AI tools may reach a broader base of PC users: the company says AI can run on a computer with 8GB of memory, potentially supporting adoption of Copilot and related services. Article: AI on an 8GB PC? Yes, Says Microsoft
• Neutral Sentiment: Xbox’s reveal of a new Elder Scrolls title drew attention to Microsoft’s gaming business, but the article provides no indication of near-term financial impact. Article: Microsoft Stock Rises After The Elder Scrolls VI: Sentinel Reveal
• Negative Sentiment: A Seeking Alpha contributor downgraded Microsoft, arguing that the easiest gains may be behind the stock—an assessment that could temper expectations after its recent strength. Article: Microsoft: The Easy Gains Are Already Over (Downgrade)
• Negative Sentiment: Microsoft’s reported $45.2 billion in quarterly capital spending, largely for AI, underscores the risk that infrastructure costs could weigh on cash flow before returns fully materialize. Reports of buyouts offered to roughly 60,000 employees may also prompt questions about workforce changes. Article: 5 questions to ask if your boss offers you a buyout

Insider Activity at Microsoft

In related news, EVP Amy Hood sold 7,305 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value of $3,984,293.10. Following the completion of the sale, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. The trade was a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares of the company's stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 135,504 shares of company stock worth $68,138,024 over the last three months. Corporate insiders own 0.03% of the company's stock.

Microsoft Profile

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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