BayBridge Capital Group LLC Boosts Stock Holdings in Microsoft Corporation $MSFT

Key Points

• BayBridge Capital Group increased its Microsoft holdings by 28.1% in the second quarter, reaching 5,318 shares valued at approximately $1.98 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, exceeding analyst expectations. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $562.49.
• The company’s AI and Azure expansion remain major growth drivers, but investors are monitoring roughly $116 billion in planned AI infrastructure spending, potential cloud-margin pressure and recent insider selling, including CEO Satya Nadella’s $43.4 million Rule 10b5-1 sale.

BayBridge Capital Group LLC lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 28.1% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,318 shares of the software giant's stock after buying an additional 1,167 shares during the quarter. Microsoft comprises 1.0% of BayBridge Capital Group LLC's investment portfolio, making the stock its 16th biggest position. BayBridge Capital Group LLC's holdings in Microsoft were worth $1,984,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently bought and sold shares of the company. WFA Asset Management Corp boosted its holdings in shares of Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant's stock worth $427,000 after acquiring an additional 216 shares during the period. Ironwood Wealth Management LLC. grew its position in shares of Microsoft by 0.3% in the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant's stock valued at $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC raised its stake in shares of Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant's stock valued at $1,144,000 after purchasing an additional 2,138 shares during the period. Wealth Group Ltd. lifted its holdings in Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant's stock worth $1,000,000 after purchasing an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC lifted its holdings in Microsoft by 0.4% during the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant's stock worth $9,735,000 after purchasing an additional 96 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft will begin reporting quarterly Azure revenue in fiscal 2027 and reorganize its financial reporting from three segments into two AI-focused categories. Azure generated approximately $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, providing investors with more visibility into cloud growth and AI demand. Microsoft to reveal Azure cloud sales in financial reporting shift
• Positive Sentiment: Citi reaffirmed a Buy rating and $600 price target, while other analysts cited Microsoft’s large AI backlog, Azure’s more than $100 billion annual revenue and the potential for improved AI economics. The company’s latest earnings also showed strong momentum, with revenue up 17.7% year over year and a substantial earnings beat. Analyst reaffirms Buy on Microsoft
• Positive Sentiment: Microsoft-backed OpenAI launched GPT-6 Astra, potentially strengthening Microsoft’s AI ecosystem and demand for Azure infrastructure. Microsoft is also securing long-term power capacity for data centers and expanding Microsoft 365 Copilot integrations. OpenAI launches GPT-6 Astra
• Neutral Sentiment: CEO Satya Nadella sold 86,525 shares worth about $43.4 million under a pre-arranged Rule 10b5-1 plan. The scheduled nature of the sale limits its significance, although it reduced his holdings by 15.09% and adds to recent insider selling.
• Negative Sentiment: Microsoft will impose monthly limits on Xbox cloud-gaming hours for Game Pass subscribers beginning in November as service costs rise. The change may improve economics but could hurt consumer sentiment and gaming engagement. Microsoft to impose time limits on Xbox cloud gaming
• Negative Sentiment: Investors continue to weigh Microsoft’s roughly $116 billion AI infrastructure spending plan, rising data-center costs and pressure on cloud margins. The key risk is whether the large backlog converts into profitable cash flow rather than simply future revenue.

Analyst Ratings Changes

MSFT has been the subject of a number of recent analyst reports. Guggenheim reaffirmed a "buy" rating and set a $586.00 target price on shares of Microsoft in a report on Monday, July 27th. Benchmark reissued a "buy" rating on shares of Microsoft in a report on Friday, July 24th. BMO Capital Markets raised their price objective on shares of Microsoft from $500.00 to $515.00 and gave the company an "outperform" rating in a research report on Thursday, July 30th. Oppenheimer reaffirmed an "outperform" rating and set a $515.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Microsoft in a report on Monday, July 20th. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $562.49.

Microsoft Stock Performance

Shares of NASDAQ MSFT opened at $510.12 on Friday. The stock has a market cap of $3.79 trillion, a price-to-earnings ratio of 28.40, a P/E/G ratio of 1.60 and a beta of 1.11. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The stock's 50-day moving average is $441.99 and its 200 day moving average is $415.21.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced 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. 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%. The firm's revenue was up 17.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.65 EPS. On average, sell-side analysts anticipate that Microsoft Corporation will post 19.59 EPS for the current fiscal year.

Microsoft Announces Dividend

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

Insider Activity at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% 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 sold 108,335 shares of company stock worth $53,499,700 in the last three months. 0.03% of the stock is owned by insiders.

Microsoft Company 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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