3,749 Shares in Microsoft Corporation $MSFT Acquired by Addison Advisors LLC

Key Points

• Addison Advisors LLC acquired 3,749 Microsoft shares worth approximately $1.4 million in the second quarter, making Microsoft about 0.7% of its portfolio. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and earnings of $4.74 per share, beating analyst expectations. The stock was trading near its 52-week high with a market capitalization of roughly $3.97 trillion.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $578.73. Microsoft also raised its quarterly dividend to $0.98, while insider selling and regulatory and hiring-related risks remain notable concerns.

Addison Advisors 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 and Exchange Commission (SEC). The firm purchased 3,749 shares of the software giant's stock, valued at approximately $1,399,000. Microsoft accounts for about 0.7% of Addison Advisors LLC's portfolio, making the stock its 21st biggest position.

Several other large investors have also added to or reduced their stakes in MSFT. Auto Owners Insurance Co boosted its stake 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 purchasing an additional 60,009,531 shares in the last quarter. Amundi increased its position in shares of Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock valued at $15,426,862,000 after buying an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after buying an additional 2,784,809 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in 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 buying an additional 9,493,778 shares in the last quarter. Finally, Hsbc Holdings PLC raised its stake in Microsoft by 7.8% in the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock worth $10,715,379,000 after buying an additional 1,599,412 shares in the last quarter. Institutional investors own 71.13% of the company's stock.

Key Stories 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

Microsoft Stock Performance

Shares of NASDAQ MSFT 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 stock has a market cap of $3.97 trillion, a P/E ratio of 29.79, a price-to-earnings-growth ratio of 1.72 and a beta of 1.10. The firm has a 50-day moving average of $501.15 and a 200 day moving average of $435.10. 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 (NASDAQ:MSFT - Get Free Report) last announced 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 business had revenue of $90.01 billion for the quarter, compared to analysts' expectations of $87.62 billion. During the same quarter in the prior year, the company earned $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 expect that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

Analyst Upgrades and Downgrades

Several brokerages have commented on MSFT. Citigroup upgraded shares of Microsoft from a "market outperform" rating to a "buy" rating in a report on Monday, October 5th. Phillip Securities downgraded Microsoft from a "strong-buy" rating to a "moderate buy" rating in a report on Monday, August 3rd. Raymond James Financial downgraded Microsoft from a "moderate buy" rating to a "strong sell" rating in a report on Wednesday, September 23rd. Royal Bank Of Canada reissued an "outperform" rating on shares of Microsoft in a research report on Thursday, September 10th. Finally, KeyCorp reissued an "overweight" rating on shares of Microsoft in a research report on Thursday, September 3rd. Forty-two research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $578.73.

Insider Buying and Selling

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is currently owned by corporate insiders.

About Microsoft

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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