Ameritas Advisory Services LLC Acquires 28,872 Shares of Microsoft Corporation $MSFT

Key Points

• Ameritas Advisory Services increased its Microsoft stake by 40.9% in the second quarter, acquiring 28,872 shares for a total holding of 99,483 shares valued at approximately $37.1 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue rising 18.8% year over year to $92.28 billion and EPS of $4.89, beating analyst expectations. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains positive, with Microsoft carrying a “Moderate Buy” consensus rating and an average price target of $609.54, although investors continue to monitor heavy AI-related spending, rising costs and insider share sales.

Ameritas Advisory Services LLC grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 40.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 99,483 shares of the software giant's stock after acquiring an additional 28,872 shares during the quarter. Microsoft comprises approximately 0.7% of Ameritas Advisory Services LLC's investment portfolio, making the stock its 27th largest holding. Ameritas Advisory Services LLC's holdings in Microsoft were worth $37,109,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of MSFT. Montgomery Financial Services LLC acquired a new stake in shares of Microsoft during the second quarter worth $26,000. Frankly Finances LLC purchased a new position in Microsoft in the 2nd quarter worth $35,000. Bard Associates Inc. purchased a new position in Microsoft in the 2nd quarter worth $37,000. PMV Capital Advisers LLC acquired a new stake in Microsoft during the 2nd quarter worth about $38,000. Finally, Fiduciary Advisors Inc. lifted its position in Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after acquiring an additional 34 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Price Performance

Shares of MSFT opened at $521.91 on Friday. The business's 50-day moving average is $512.91 and its two-hundred day moving average is $438.43. The company has a market capitalization of $3.88 trillion, a P/E ratio of 27.24, a P/E/G ratio of 1.64 and a beta of 1.10. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $551.15. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.22.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The business had revenue of $92.28 billion during the quarter, compared to analysts' expectations of $90.62 billion. During the same quarter in the previous year, the firm posted $4.13 EPS. The company's revenue for the quarter was up 18.8% on a year-over-year basis. Research analysts predict that Microsoft Corporation will post 19.79 earnings per share for the current 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 given a dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is 19.00%.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

Insider Buying and Selling

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction that occurred 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 transaction, the chief executive officer directly 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 in the last ninety days. Insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

Several research firms have weighed in on MSFT. Truist Financial reiterated a "buy" rating and set a $630.00 price target (up from $600.00) on shares of Microsoft in a research note on Thursday. Royal Bank Of Canada reissued an "outperform" rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday. Argus reduced their price objective on Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research note on Friday, July 10th. KeyCorp set a $625.00 target price on Microsoft in a report on Thursday. Finally, Bank of America upped their target price on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. One research analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $609.54.

About Microsoft

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.

Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.