Alamar Capital Management LLC Invests $591,000 in Microsoft Corporation $MSFT

Key Points

• Alamar Capital Management initiated a Microsoft position worth approximately $591,000 by purchasing 1,596 shares in the first quarter. Institutional investors collectively own 71.13% of Microsoft’s outstanding stock.
• Analysts remain broadly bullish, with 42 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $558.87. Recent targets range from $450 to $650.
• Microsoft reported stronger-than-expected quarterly results, including $4.74 in EPS and $90.01 billion in revenue, while AI-driven Azure growth supports its outlook. However, rising data-center spending, margin pressure, customer concentration and recent insider selling remain risks.

Alamar Capital Management LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 1,596 shares of the software giant's stock, valued at approximately $591,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of MSFT. Longfellow Investment Management Co. LLC boosted its position in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors acquired a new stake in shares of Microsoft in the 4th quarter valued at $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft in the 4th quarter valued at $36,000. Fairway Wealth LLC increased its stake in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares during the last quarter. Finally, LSV Asset Management acquired a new position in shares of Microsoft during the 4th quarter worth $44,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Analysts Set New Price Targets

Several analysts recently weighed in on MSFT shares. Evercore set a $528.00 price objective on Microsoft in a research note on Thursday, July 30th. Stifel Nicolaus increased their target price on shares of Microsoft from $400.00 to $450.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Wells Fargo & Company raised their price target on shares of Microsoft from $625.00 to $650.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Mizuho decreased their price target on shares of Microsoft from $515.00 to $490.00 and set an "outperform" rating on the stock in a report on Wednesday, July 15th. Finally, President Capital upped their price objective on shares of Microsoft from $500.00 to $520.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $558.87.

Insiders Place Their Bets

In related news, EVP Amy Coleman sold 1,262 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. This represents a 2.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction that occurred 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 $21,188,276.96. This represents a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 38,572 shares of company stock worth $17,775,330. 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: Citi raised its Microsoft price target to $600. The upgrade follows Microsoft’s quarterly Azure performance, with analysts highlighting the 43% cloud-revenue increase and stronger-than-expected earnings as evidence that AI demand is translating into accelerating cloud growth. Citi Raises Microsoft Stock Target to $600
• Positive Sentiment: Microsoft’s custom AI chips may improve cloud economics. CEO Satya Nadella said the company’s internally developed chips can deliver efficiency gains of up to 40%. Better cost and energy efficiency could help Microsoft support AI workloads while protecting Azure margins. Microsoft Custom AI Chips Improve Efficiency
• Positive Sentiment: Azure is expanding in India. Microsoft opened a major Hyderabad data-center region and is committing approximately $20.5 billion to its Indian cloud and AI operations. Early customers include Adani Group and HDFC Bank, supporting the case for long-term international Azure growth. Microsoft Opens Largest India Data Center Hub
• Positive Sentiment: Fundamentals and institutional support remain strong. Microsoft recently exceeded quarterly revenue and EPS expectations, while Bill Ackman’s Pershing Square holds a reported $2.4 billion MSFT position. Scotiabank also raised its fiscal 2027 EPS estimate and maintained an Outperform rating. Bill Ackman Microsoft Stake
• Neutral Sentiment: AI demand is powerful but concentrated. Reports suggest OpenAI may account for a substantial portion of Microsoft’s AI sales, creating both a major growth engine and customer-concentration risk. Microsoft’s large AI backlog also does not guarantee equivalent future profitability.
• Negative Sentiment: Spending, margins and valuation remain concerns. Rising data-center capital expenditures and lower cloud gross margins could pressure cash flow if AI infrastructure costs grow faster than revenue. After the sharp post-earnings rally, the stock is also more vulnerable to profit-taking or disappointing guidance.
• Negative Sentiment: Insider sales and securities litigation add headline risk. CEO Judson Althoff sold 10,000 shares for roughly $4.9 million, and multiple law firms are publicizing a securities class action with an August 11 lead-plaintiff deadline. These developments do not establish wrongdoing but may weigh on near-term sentiment.

Microsoft Stock Performance

Shares of MSFT stock opened at $499.99 on Friday. The stock has a market capitalization of $3.71 trillion, a PE ratio of 27.84, a PEG ratio of 1.61 and a beta of 1.11. The business's 50 day simple moving average is $404.86 and its 200 day simple moving average is $406.96. 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 Corporation has a one year low of $349.20 and a one year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating 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 company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the firm posted $3.65 EPS. The company's quarterly revenue was up 17.7% on a year-over-year basis. As a group, research analysts forecast that Microsoft Corporation will post 19.58 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft's dividend payout ratio is 20.27%.

Microsoft Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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