11,336 Shares of Microsoft Corporation $MSFT Purchased by Gables Capital Management Inc.

Key Points

• Gables Capital Management initiated a Microsoft position of 11,336 shares worth approximately $4.23 million, while institutional investors collectively own 71.13% of MSFT.
• Microsoft reported strong quarterly results, with revenue up 17.7% year over year and earnings exceeding estimates; analysts maintain a “Moderate Buy” consensus with a $578.73 average price target.
• Shares traded near record highs with a $3.97 trillion market capitalization, while the company raised its quarterly dividend to $0.98; insider selling and regulatory and hiring-related risks remain notable concerns.

Gables Capital Management Inc. bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 11,336 shares of the software giant's stock, valued at approximately $4,229,000. Microsoft accounts for 1.5% of Gables Capital Management Inc.'s holdings, making the stock its 15th biggest holding.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in MSFT. Auto Owners Insurance Co lifted its position in shares of Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock valued at $29,073,486,000 after buying an additional 60,009,531 shares in the last quarter. Amundi raised its stake in Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP raised its stake in Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares during the period. Hsbc Holdings PLC lifted its holdings in 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 position in shares of Microsoft by 64.3% in 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 period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Microsoft

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 other news, EVP Amy Hood sold 41,674 shares of the business's stock in a transaction 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 sale, the executive vice president directly owned 533,624 shares of the company's stock, valued at $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 transaction, the chief executive officer directly owned 100,447 shares of the company's stock, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on MSFT shares. Argus reduced their price objective on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research note on Friday, July 10th. Weiss Ratings upgraded shares of Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday. Wells Fargo & Company upped their target price on shares of Microsoft from $700.00 to $725.00 and gave the stock an "overweight" rating in a report on Thursday, October 1st. Royal Bank Of Canada reiterated an "outperform" rating on shares of Microsoft in a research note on Thursday, September 10th. Finally, Melius Research set a $665.00 price target on Microsoft and gave the company a "buy" rating in a report on Monday. Forty-two analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $578.73.

Microsoft Trading Up 2.4%

MSFT stock opened at $535.07 on Friday. The firm's 50-day moving average is $501.15 and its 200 day moving average is $434.73. 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 12 month low of $349.20 and a 12 month high of $553.72. The company has a market capitalization of $3.97 trillion, a PE ratio of 29.79, a P/E/G ratio of 1.68 and a beta of 1.10.

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

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is 20.27%.

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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