1,983 Shares in Microsoft Corporation $MSFT Bought by January Capital Advisors LLC

Key Points

• January Capital Advisors LLC bought 1,983 Microsoft shares worth approximately $734,000 in the first quarter, making Microsoft about 1% of its portfolio. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft’s latest quarter exceeded expectations, with revenue of $90.01 billion, EPS of $4.74, and year-over-year revenue growth of 17.7%, supported by Azure and growing Copilot demand.
• Analysts maintain a bullish outlook, with a “Moderate Buy” consensus and average price target of $560.27, though investors remain concerned about the impact of roughly $175 billion in AI infrastructure spending on free cash flow and cloud margins.

January Capital Advisors LLC bought a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 1,983 shares of the software giant's stock, valued at approximately $734,000. Microsoft comprises about 1.0% of January Capital Advisors LLC's portfolio, making the stock its 23rd biggest position.

A number of other large investors have also added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC lifted its holdings in shares of Microsoft by 51.3% in the 2nd 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. Bernzott Capital Advisors bought a new position in shares of Microsoft during the 4th quarter valued at $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft during the 4th quarter valued at $36,000. Fairway Wealth LLC raised its position in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after purchasing an additional 66 shares during the period. Finally, University of Illinois Foundation purchased a new position in Microsoft in the 2nd quarter worth $50,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts continue to highlight Microsoft’s Azure expansion, accelerating Microsoft 365 Copilot adoption, and the company’s ability to sustain double-digit earnings growth. Microsoft’s latest quarter also exceeded expectations, with revenue of approximately $90 billion and earnings growth supported by Azure. Microsoft’s Cloud Gains Can Sustain Double-Digit Earnings Growth
• Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing stronger Copilot demand and accelerating infrastructure investment. Other analysts remain bullish, with a six-month median target near $540, reinforcing investor confidence in Microsoft’s long-term AI positioning. JPMorgan Raises Microsoft Price Target
• Positive Sentiment: Microsoft is combining its consumer and enterprise Copilot applications into a unified platform, potentially improving distribution, user engagement, and monetization as it competes with ChatGPT, Gemini, and Claude. Microsoft Unifies Copilot Applications
• Neutral Sentiment: Microsoft approved the first AI data-center deployment under its $9.7 billion agreement with IREN, supporting Azure capacity expansion. The deal improves supply visibility but also underscores Microsoft’s substantial capital requirements. IREN Delivers First AI Cloud Deployment
• Negative Sentiment: Investors remain concerned that Microsoft’s roughly $175 billion AI infrastructure spending plan could pressure free cash flow and cloud margins. A reported decline in cloud gross margin and higher data-center, chip, electricity, and labor costs raise questions about how much of the company’s large AI backlog will translate into profit. Microsoft’s AI Backlog and Profitability Concerns
• Negative Sentiment: Reports that Microsoft has closed at least 15 China offices and joint ventures add geopolitical and operational uncertainty, although Azure reportedly provides a profitable reason to retain a limited China presence. Microsoft Retreats in China

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Barclays cut their price target on shares of Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Dbs Bank lowered their target price on Microsoft from $678.00 to $573.00 in a research note on Thursday, May 7th. UBS Group set a $525.00 target price on Microsoft in a report on Thursday, July 30th. Royal Bank Of Canada restated an "outperform" rating and set a $640.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Finally, Benchmark reiterated a "buy" rating on shares of Microsoft in a research report on Friday, July 24th. Forty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $560.27.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $495.40 on Friday. 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 company has a 50-day moving average price of $411.27 and a 200-day moving average price of $408.50. The company has a market cap of $3.68 trillion, a price-to-earnings ratio of 27.58, a price-to-earnings-growth ratio of 1.60 and a beta of 1.11. 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 posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping 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 earned $3.65 earnings per share. Microsoft's quarterly revenue was up 17.7% on a year-over-year basis. As a group, equities analysts anticipate that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is 20.27%.

Insider Buying and Selling

In other news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following 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. Over the last quarter, insiders sold 37,310 shares of company stock worth $17,256,219. Corporate insiders own 0.03% of the company's stock.

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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