Portland Financial Advisors Inc Makes New Investment in Microsoft Corporation $MSFT

Key Points

• Portland Financial Advisors acquired 1,485 Microsoft shares worth approximately $554,000 in the second quarter, making Microsoft its 17th-largest holding and about 1% of its portfolio. Institutional investors collectively own 71.13% of Microsoft.
• Analyst sentiment remains broadly positive, with 42 Buy ratings, four Holds and two Sells; Microsoft has a consensus “Moderate Buy” rating and an average price target of $578.73.
• Microsoft reported quarterly revenue of $90.01 billion and earnings of $4.74 per share, both ahead of expectations, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, or $3.92 annually.

Portland Financial Advisors Inc bought a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 1,485 shares of the software giant's stock, valued at approximately $554,000. Microsoft accounts for about 1.0% of Portland Financial Advisors Inc's holdings, making the stock its 17th biggest holding.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Frankly Finances LLC purchased a new stake in Microsoft in the second quarter worth about $35,000. Fiduciary Advisors Inc. increased its stake in shares of Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after purchasing an additional 34 shares in the last quarter. Persistent Asset Partners Ltd purchased a new position in shares of Microsoft during the second quarter valued at approximately $60,000. Lifetime Wealth Management P.C. purchased a new position in shares of Microsoft during the fourth quarter valued at approximately $101,000. Finally, Glynn Capital Management LLC boosted its position in shares of Microsoft by 34.2% in the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock worth $95,000 after purchasing an additional 65 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently weighed in on MSFT shares. BMO Capital Markets began coverage on Microsoft in a research note on Monday, October 5th. They issued an "outperform" rating on the stock. Wolfe Research lowered Microsoft from an "outperform" rating to a "hold" rating in a research report on Wednesday, September 23rd. Bank of America lifted their price objective on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research note on Tuesday, September 1st. Oppenheimer boosted their target price on Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a report on Tuesday, September 22nd. Finally, Evercore raised Microsoft from an "underperform" rating to an "outperform" rating in a report on Monday, October 5th. Forty-two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $578.73.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $535.07 on Monday. The company has a market cap of $3.97 trillion, a P/E ratio of 29.79, a PEG ratio of 1.72 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The stock's fifty day moving average price is $501.15 and its 200-day moving average price is $435.10.

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

Microsoft Increases Dividend

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

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Insider Activity at Microsoft

In related news, EVP Amy Hood sold 41,674 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 143,009 shares of company stock valued at $71,420,699. Insiders own 0.03% of the company's stock.

Microsoft 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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