217,910 Shares of Microsoft Corporation $MSFT Bought by Madison Asset Management LLC

Key Points

• Madison Asset Management purchased 217,910 Microsoft shares worth approximately $81.3 million in the second quarter. Institutional investors now own 71.13% of the company.
• Microsoft reported quarterly revenue of $90.01 billion and EPS of $4.74, beating analyst expectations, while revenue grew 17.7% year over year. The stock has a market capitalization near $4 trillion and analysts maintain a “Moderate Buy” consensus with a $578.73 price target.
• Microsoft raised its quarterly dividend to $0.98 per share from $0.91, implying an annualized dividend of $3.92 and a 0.7% yield. Recent insider activity was negative, with executives selling shares and insiders disposing of 143,009 shares worth about $71.4 million during the quarter.

Madison Asset Management LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 217,910 shares of the software giant's stock, valued at approximately $81,285,000.

Several other large investors also recently made changes to their positions in MSFT. OV Management LLC acquired a new position in shares of Microsoft during the 2nd quarter valued at about $432,000. Planning Directions Inc. bought a new position in shares of Microsoft in the 2nd quarter valued at approximately $1,205,000. AssuredPartners Investment Advisors LLC acquired a new stake in Microsoft in the 2nd quarter worth approximately $16,637,000. Shepherd Financial Partners LLC acquired a new stake in Microsoft in the 2nd quarter worth approximately $14,840,000. Finally, Myecfo LLC bought a new stake in Microsoft during the second quarter worth approximately $485,000. Institutional investors own 71.13% of the company's stock.

Trending Headlines about 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

Microsoft Stock Performance

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

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results 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 net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. During the same period in the prior year, the company earned $3.65 EPS. The business's quarterly revenue was up 17.7% compared to the same quarter last year. As a group, sell-side analysts expect that Microsoft Corporation will post 19.65 EPS 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 0.7%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is presently 20.27%.

Insider Activity at Microsoft

In related news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated 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 completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated 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 ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is owned by company insiders.

Analyst Ratings Changes

Several equities analysts have commented on MSFT shares. Weiss Ratings upgraded Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday. Melius Research set a $665.00 price objective on shares of Microsoft and gave the stock a "buy" rating in a research note on Monday, October 5th. BNP Paribas Exane downgraded shares of Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Microsoft in a report on Monday, July 20th. Finally, JPMorgan Chase & Co. reiterated a "buy" rating on shares of Microsoft in a research note on Monday, September 28th. Forty-two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $578.73.

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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