Allworth Financial LP Makes New $152.02 Million Investment in Microsoft Corporation $MSFT

Key Points

• Allworth Financial LP acquired 407,549 Microsoft shares worth approximately $152 million in the second quarter, making Microsoft its 16th-largest holding. Institutional investors collectively own 71.13% of the company.
• Microsoft reported quarterly earnings and revenue above analyst expectations, with EPS 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 per share, or $3.92 annually.
• Analyst sentiment remains broadly positive, with 42 Buy ratings and a consensus price target of $581.80, although insiders sold more than $71 million of stock over the past three months and investors continue to monitor heavy AI infrastructure spending.

Allworth Financial LP bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 407,549 shares of the software giant's stock, valued at approximately $152,024,000. Microsoft makes up approximately 0.6% of Allworth Financial LP's investment portfolio, making the stock its 16th biggest position.

Several other institutional investors and hedge funds also recently modified their holdings of the stock. Frankly Finances LLC acquired a new stake in Microsoft in the second quarter valued at approximately $35,000. Fiduciary Advisors Inc. lifted its position in shares of Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after purchasing an additional 34 shares in the last quarter. Persistent Asset Partners Ltd purchased a new position in shares of Microsoft in the second quarter valued at $60,000. Glynn Capital Management LLC boosted its stake in shares of Microsoft by 34.2% in the second quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock valued at $95,000 after purchasing an additional 65 shares during the period. Finally, Lifetime Wealth Management P.C. purchased a new position in shares of Microsoft in the fourth quarter valued at $101,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Trading Up 0.4%

Shares of NASDAQ MSFT opened at $543.45 on Wednesday. The stock's 50 day moving average price is $503.23 and its two-hundred day moving average price is $437.50. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The stock has a market capitalization of $4.04 trillion, a P/E ratio of 30.26, a PEG ratio of 1.74 and a beta of 1.10. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. Microsoft's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business posted $3.65 EPS. On average, analysts anticipate 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. Investors of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is 20.27%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Maia 300 strengthens Microsoft’s AI strategy. Microsoft unveiled its third-generation Maia 300 custom AI processor, which it says can deliver approximately 40% more AI-generated tokens per megawatt or dollar than leading GPU-based systems. The company plans multi-gigawatt deployments beginning in 2027, potentially lowering inference costs, improving Azure margins and reducing reliance on Nvidia and AMD. Microsoft Reveals Next-Gen Maia 300 Custom AI Chip For Widespread Deployment
• Positive Sentiment: AI infrastructure demand remains exceptionally strong. Microsoft reportedly signed more than $130 billion in data-center leases during the quarter, signaling aggressive capacity expansion to meet demand for Azure and AI services. Management has also indicated that demand continues to exceed available capacity, while its commercial backlog has reached a record level. Microsoft Reports $130 Billion in Data Center Leases
• Positive Sentiment: Analyst sentiment is supportive ahead of earnings. Barclays raised its Microsoft price target to $600 from $512 and expects greater differentiation in software results. Microsoft is scheduled to report fiscal first-quarter 2027 results on October 28, with consensus estimates of approximately $4.72 in earnings per share and $90.4 billion in revenue. Microsoft price target raised to $600 from $512 at Barclays
• Positive Sentiment: New AI products broaden Microsoft’s growth opportunities. The Decision-1 model is described as faster and cheaper to operate than competing systems, while new Surface Pro and Surface Laptop devices add AI features, 5G connectivity and improved battery efficiency.
• Neutral Sentiment: Investors are weighing AI growth against spending. The Maia rollout could improve long-term economics, but Microsoft is committing substantial capital to data centers and chips. Analysts are monitoring whether shrinking free cash flow and high infrastructure costs offset Azure and Copilot growth.
• Negative Sentiment: Regulatory and execution risks remain. Microsoft is conducting another round of layoffs in Israel, its research chief Peter Lee is leaving for Mercedes’ Formula 1 team, and Norway fined subsidiary Xandr €8.6 million over Grindr data sharing. Nadella and President Brad Smith are also calling for stronger AI safeguards, highlighting potential compliance costs and liability risks.

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on 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 completion of the transaction, the executive vice president owned 42,677 shares of the company's stock, 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 document filed with the SEC, which is available through this link. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at approximately $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. In the last three months, insiders sold 143,009 shares of company stock worth $71,420,699. Company insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on MSFT shares. Scotiabank lifted their price target on shares of Microsoft from $510.00 to $615.00 and gave the stock an "outperform" rating in a research note on Monday, October 5th. Royal Bank Of Canada reissued an "outperform" rating on shares of Microsoft in a research report on Thursday, September 10th. Phillip Securities downgraded Microsoft from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. BNP Paribas Exane lowered Microsoft from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Finally, DA Davidson reissued a "buy" rating and issued a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $581.80.

Microsoft Company Profile

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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