26,372 Shares of Microsoft Corporation $MSFT Acquired by McDonough Capital Management Inc

Key Points

• McDonough Capital Management acquired 26,372 Microsoft shares worth approximately $9.84 million, making Microsoft its fifth-largest holding at 4.9% of the portfolio. Several other institutions also initiated positions, while institutional investors collectively own 71.13% of the stock.
• Microsoft reported strong quarterly results, with earnings per share of $4.74 and revenue of $90.01 billion, up 17.7% year over year. The company also raised its quarterly dividend to $0.98, or $3.92 annually.
• Analysts remain broadly bullish, with 42 Buy ratings and a consensus price target of $589.71. Investors are nevertheless watching AI spending, Azure monetization, margin pressure and regulatory scrutiny of Microsoft’s cloud and business-software operations.

McDonough Capital Management Inc purchased a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 26,372 shares of the software giant's stock, valued at approximately $9,838,000. Microsoft comprises approximately 4.9% of McDonough Capital Management Inc's holdings, making the stock its 5th largest position.

A number of other institutional investors have also recently made changes to their positions in the stock. Cetera Trust Company N.A acquired a new stake in shares of Microsoft during the second quarter worth $4,913,000. Aberdeen Wealth Management LLC acquired a new position in Microsoft in the second quarter valued at $2,232,000. Visionary Wealth Advisors bought a new stake in Microsoft during the second quarter valued at $43,896,000. Cullen Capital Management LLC bought a new stake in Microsoft during the second quarter valued at $109,280,000. Finally, Whalen Wealth Management Inc. bought a new stake in Microsoft during the second quarter valued at $3,863,000. Institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $529.05 on Monday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm has a market cap of $3.93 trillion, a PE ratio of 29.46, a P/E/G ratio of 1.70 and a beta of 1.10. The company's fifty day simple moving average is $505.53 and its 200 day simple moving average is $441.16. 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 quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share 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 the consensus estimate of $87.62 billion. During the same period in the previous year, the firm posted $3.65 earnings per share. The business's revenue was up 17.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

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

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive
• Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource
• Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper
• Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins.
• Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip
• Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure.

Analysts Set New Price Targets

Several research analysts have recently weighed in on MSFT shares. Citigroup lifted their price objective on Microsoft from $600.00 to $636.00 and gave the stock a "buy" rating in a research report on Thursday. Royal Bank Of Canada reissued an "outperform" rating on shares of Microsoft in a research note on Thursday, September 10th. Oppenheimer upped their target price on Microsoft from $515.00 to $570.00 and gave the company an "outperform" rating in a research report on Tuesday, September 22nd. Needham & Company LLC started coverage on Microsoft in a research note on Wednesday, September 23rd. They set a "buy" rating for the company. Finally, Guggenheim reaffirmed a "buy" rating and set a $586.00 target price on shares of Microsoft in a research note on Monday, July 27th. Forty-two analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $589.71.

Insider Transactions at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 sale, the executive vice president owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. This represents a 1.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is currently owned by insiders.

Microsoft Company 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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