7,259 Shares in Microsoft Corporation $MSFT Acquired by Tandem Financial LLC

Key Points

• Tandem Financial LLC acquired 7,259 Microsoft shares worth approximately $2.7 million, making Microsoft its 20th-largest holding. Institutional investors collectively own 71.13% of the stock.
• Microsoft insiders sold roughly $75.4 million of stock over the past 90 days, including CEO Satya Nadella’s sale of 86,525 shares under a pre-arranged Rule 10b5-1 plan.
• Microsoft exceeded quarterly earnings and revenue expectations, while analysts maintain a “Moderate Buy” consensus with an average price target of $589.71. The company also raised its quarterly dividend to $0.98 per share as investors assess AI spending, Azure growth and potential regulatory pressure.

Tandem Financial LLC acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 7,259 shares of the software giant's stock, valued at approximately $2,708,000. Microsoft makes up about 0.8% of Tandem Financial LLC's investment portfolio, making the stock its 20th biggest holding.

A number of other institutional investors and hedge funds have also modified their holdings of MSFT. Frankly Finances LLC acquired a new stake in Microsoft during the second quarter worth $35,000. Bard Associates Inc. bought a new stake in Microsoft in the 2nd quarter valued at $37,000. Fiduciary Advisors Inc. increased its holdings in Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after buying an additional 34 shares during the period. Persistent Asset Partners Ltd acquired a new position in shares of Microsoft in the 2nd quarter valued at $60,000. Finally, Conquis Financial LLC acquired a new position in shares of Microsoft in the 2nd quarter valued at $60,000. 71.13% of the stock is currently owned by institutional investors.

Insider Activity

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business's 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 transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 150,314 shares of company stock worth $75,404,992. Company insiders own 0.03% of the company's stock.

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.

Microsoft Stock Performance

Microsoft stock opened at $529.05 on Monday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The stock has a fifty day moving average price of $505.53 and a two-hundred day moving average price of $441.16. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The firm has a market capitalization of $3.93 trillion, a P/E ratio of 29.46, a P/E/G ratio of 1.70 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $87.62 billion. During the same period last year, the business earned $3.65 earnings per share. The business's revenue was up 17.7% on a year-over-year basis. As a group, analysts anticipate 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 dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's dividend payout ratio is 20.27%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on MSFT shares. Phillip Securities downgraded shares of Microsoft from a "moderate buy" rating to a "hold" rating in a report on Monday, October 12th. Bank of America lifted their target price on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. BNP Paribas Exane cut shares of Microsoft from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Tigress Financial increased their price target on shares of Microsoft from $680.00 to $690.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Finally, KeyCorp restated an "overweight" rating on shares of Microsoft in a research note on Thursday, September 3rd. Forty-two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $589.71.

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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