2,250 Shares of Microsoft Corporation $MSFT Purchased by Ratan Capital Management LP

Key Points

• Ratan Capital Management acquired 2,250 Microsoft shares worth approximately $839,000 in the second quarter, while institutional investors collectively own 71.13% of the company.
• Microsoft insiders sold 150,314 shares valued at roughly $75.4 million over the past 90 days, including sales by CEO Judson Althoff and EVP Amy Hood.
• Analysts maintain a generally bullish outlook, with a consensus “Moderate Buy” rating and a $592.15 price target; Microsoft also reported quarterly revenue growth of 17.7% and raised its quarterly dividend to $0.98 per share.

Ratan Capital Management LP acquired a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 2,250 shares of the software giant's stock, valued at approximately $839,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Livforsakringsbolaget Skandia Omsesidigt bought a new position in Microsoft during the second quarter worth about $131,900,000. Twin Lakes Capital Management LLC bought a new stake in shares of Microsoft in the 2nd quarter valued at about $3,115,000. Muhlenkamp & Co. Inc. acquired a new stake in shares of Microsoft in the 2nd quarter valued at approximately $12,226,000. Strait & Sound Wealth Management LLC acquired a new stake in shares of Microsoft in the 2nd quarter valued at approximately $15,897,000. Finally, Rakuten Investment Management Inc. bought a new position in Microsoft during the 2nd quarter worth approximately $516,666,000. 71.13% of the stock is owned by institutional investors.

Insider Transactions at Microsoft

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business'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 value of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, 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 owned 555,396 shares in the company, valued at $302,924,086.32. The trade was a 1.30% 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 a total of 150,314 shares of company stock worth $75,404,992 in the last 90 days. 0.03% of the stock is owned by corporate insiders.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s AI diagnostic system reportedly diagnosed complex medical cases more than twice as often as generalist physicians in a simulation published in Science. The result supports the company’s ambitions in healthcare and “medical superintelligence.” Microsoft AI medical diagnostic study
• Positive Sentiment: Reports highlighted strong underlying cloud momentum: Azure annual revenue has surpassed $100 billion, cloud-services growth reached 43%, and Microsoft’s commercial backlog rose to approximately $678 billion. These trends could support the investment case if the company demonstrates continued acceleration in its upcoming earnings report. Microsoft cloud demand and backlog
• Positive Sentiment: CEO Satya Nadella said Microsoft is reorganizing around AI agents, broader model choice and lower-cost computing. The strategy could expand Copilot and Azure adoption across business workflows. Microsoft AI agent strategy
• Positive Sentiment: A strategic collaboration with Boehringer Ingelheim will pursue AI-backed clinical development and digital patient twins, providing another potential application for Microsoft’s cloud and AI platforms. Microsoft and Boehringer Ingelheim partnership
• Neutral Sentiment: Investors are focused on next week’s fiscal first-quarter earnings report. Analysts expect double-digit earnings growth, but the market increasingly wants evidence that Azure growth can keep pace with rivals and justify Microsoft’s substantial AI infrastructure investments. Microsoft earnings preview
• Negative Sentiment: Microsoft’s large AI capital expenditures remain a key valuation risk. While spending may create a long-term competitive moat, investors are concerned that data-center and infrastructure costs could pressure near-term returns, especially amid higher interest rates and market volatility. Microsoft AI spending and investment risk
• Negative Sentiment: Xbox announced pricing for cloud streaming of games users already own, prompting concerns about consumer reaction and pressure on Microsoft’s gaming business. Xbox cloud gaming pricing
• Negative Sentiment: Former CEO Bill Gates warned that AI could bring roughly two decades of disruption, reinforcing investor concerns about an AI investment bubble and the potential for expensive projects to produce uncertain returns. Bill Gates AI disruption comments

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on MSFT shares. Mizuho boosted their price objective on shares of Microsoft from $510.00 to $600.00 and gave the company an "outperform" rating in a report on Thursday, October 15th. Stifel Nicolaus upgraded shares of Microsoft from a "hold" rating to a "buy" rating and increased their target price for the stock from $530.00 to $575.00 in a report on Tuesday, September 22nd. Melius Research set a $665.00 target price on shares of Microsoft and gave the stock a "buy" rating in a report on Monday, October 5th. Evercore raised shares of Microsoft from an "underperform" rating to an "outperform" rating in a research report on Monday, October 5th. Finally, Royal Bank Of Canada reissued an "outperform" rating on shares of Microsoft in a report on Thursday, September 10th. Forty-three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $592.15.

Microsoft Price Performance

MSFT stock opened at $521.08 on Friday. The stock has a 50-day moving average price of $507.93 and a two-hundred day moving average price of $445.62. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The stock has a market cap of $3.87 trillion, a PE ratio of 29.01, a price-to-earnings-growth ratio of 1.71 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 issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the company posted $3.65 earnings per share. Equities analysts forecast that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is 20.27%.

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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