Academy Capital Management Purchases 122,816 Shares of Microsoft Corporation $MSFT

Key Points

• Academy Capital Management acquired 122,816 Microsoft shares in the second quarter, valued at approximately $45.8 million and representing 6.1% of its portfolio. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with EPS of $4.74 and revenue of $90.01 billion, exceeding analyst expectations; revenue increased 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $589.71, though risks include elevated valuation, AI infrastructure costs, insider selling and competitive pressure.

Academy Capital Management acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 122,816 shares of the software giant's stock, valued at approximately $45,813,000. Microsoft accounts for 6.1% of Academy Capital Management's investment portfolio, making the stock its 9th biggest holding.

Other institutional investors and hedge funds have also recently modified their holdings of the company. CFO4Life Group LLC bought a new position in shares of Microsoft during the 2nd quarter worth $15,293,000. Quantbot Technologies LP purchased a new stake in shares of Microsoft in the second quarter worth about $20,791,000. Fortress Financial Group LLC bought a new position in shares of Microsoft in the second quarter valued at approximately $976,000. Evolve Private Wealth LLC bought a new position in shares of Microsoft in the second quarter valued at approximately $27,676,000. Finally, Martin & Co. Inc. TN bought a new position in shares of Microsoft in the second quarter valued at approximately $7,583,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Performance

Shares of Microsoft stock opened at $539.44 on Friday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $4.01 trillion, a P/E ratio of 30.89, a P/E/G ratio of 1.71 and a beta of 1.10. The business has a fifty day simple moving average of $504.95 and a two-hundred day simple moving average of $439.96. 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 issued its quarterly earnings results 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. The company had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft's revenue was up 17.7% on a year-over-year basis. During the same period last year, the company posted $3.65 EPS. On average, equities analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently declared 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 of this dividend is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is currently 20.27%.

Insider Transactions at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of the firm'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 transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction 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 completion of the sale, the chief executive officer directly owned 100,447 shares of the company's stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 150,314 shares of company stock valued at $75,404,992 over the last 90 days. 0.03% of the stock is owned by corporate insiders.

Analyst Ratings Changes

MSFT has been the subject of several analyst reports. Scotiabank raised their price target on shares of Microsoft from $510.00 to $615.00 and gave the company an "outperform" rating in a report on Monday, October 5th. Citigroup lifted their price objective on Microsoft from $600.00 to $636.00 and gave the company a "buy" rating in a research note on Thursday. Oppenheimer boosted their target price on Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 22nd. Truist Financial restated a "buy" rating and issued a $575.00 target price on shares of Microsoft in a research note on Wednesday, July 22nd. Finally, Needham & Company LLC assumed coverage on Microsoft in a research note on Wednesday, September 23rd. They issued a "buy" rating on the stock. Forty-two equities 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 company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $589.71.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: UBS raised its price target to $675 from $525 and reiterated a Buy rating, citing accelerating Azure and Microsoft 365 growth driven by artificial intelligence. The firm believes Microsoft’s valuation remains reasonable despite its recent rally. UBS raises Microsoft price target
• Positive Sentiment: Multiple Wall Street firms have lifted their targets, with analysts highlighting Azure momentum, approximately 30 million Copilot seats, Microsoft’s commercial backlog and the potential for a larger-than-usual earnings beat. The October 28 results will provide an important test of whether AI spending is translating into revenue and profit.
• Positive Sentiment: Microsoft’s Maia 300 custom AI accelerator is expected to scale across Azure data centers and reportedly deliver more tokens per megawatt than conventional GPU systems. The chip could reduce inference costs and Microsoft’s dependence on Nvidia and AMD hardware. Microsoft Maia 300 AI chip
• Positive Sentiment: AI care-management company Tucuvi joined Microsoft’s Pegasus startup program, potentially expanding Microsoft’s enterprise AI pipeline and go-to-market reach in healthcare. Microsoft also increased its quarterly dividend to $0.98 from $0.91, signaling continued confidence in cash generation. Tucuvi joins Microsoft Pegasus Program
• Neutral Sentiment: Reports that Azure management is seeking roughly 20% cost reductions could improve efficiency and margins, but also underscore the pressure created by Microsoft’s substantial AI data-center investments.
• Neutral Sentiment: Microsoft’s $10 million contribution to a White House ballroom project is unlikely to affect near-term financial results, though it could attract political or reputational scrutiny. Microsoft White House ballroom contribution
• Negative Sentiment: Higher inflation and bond yields have pressured AI valuations and raised concerns about the financing cost and returns of large infrastructure projects. Microsoft’s strong balance sheet makes it less vulnerable than smaller AI companies, but valuation sensitivity remains a risk.
• Negative Sentiment: Phillip Securities downgraded Microsoft to Hold, while reports of security vulnerabilities, executive share sales and intense competition from rapidly growing AI companies add caution. Amy Hood’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance.

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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