Capital Advantage Inc. Has $5.54 Million Stock Position in Microsoft Corporation $MSFT

Key Points

• Capital Advantage Inc. reduced its Microsoft position by 8.4% in the second quarter, selling 1,357 shares and retaining 14,843 shares valued at approximately $5.54 million. Institutional investors and hedge funds collectively own 71.13% of MSFT.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, beating expectations. Azure and AI momentum helped drive the stock’s roughly 48% rally from its June low, although some analysts caution that further gains may depend on continued cloud and AI growth.
• Analysts maintain a generally positive view, with 42 Buy ratings and five Holds and a consensus price target of $560.27. Microsoft also declared a quarterly dividend of $0.91 per share, while insiders sold more than $10.1 million in stock over the past 90 days.

Capital Advantage Inc. lowered its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 8.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 14,843 shares of the software giant's stock after selling 1,357 shares during the period. Microsoft comprises about 0.7% of Capital Advantage Inc.'s portfolio, making the stock its 17th largest holding. Capital Advantage Inc.'s holdings in Microsoft were worth $5,537,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC increased its holdings in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after buying an additional 20 shares during the last quarter. Bernzott Capital Advisors acquired a new stake in Microsoft in the fourth quarter valued at $34,000. Timmons Wealth Management LLC acquired a new stake in Microsoft in the fourth quarter valued at $36,000. Fairway Wealth LLC grew its position 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 acquiring an additional 66 shares during the period. Finally, LSV Asset Management acquired a new position in shares of Microsoft during the 4th quarter worth about $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s strong Azure and cloud performance helped drive a rally of roughly 48% from its June low, with the stock reaching a 10-month high and moving above a technical buy point. A recently formed “golden cross,” in which the 50-day moving average moved above the 200-day average, also supports bullish momentum. Bull v. Bear: MSFT Hits 2026 High, is a New Record Next?
• Positive Sentiment: Microsoft is reportedly in early discussions with Moonshot AI regarding its Kimi K3 model. A potential arrangement could add another AI service to Azure and create a new revenue stream, although negotiations are not finalized. MSFT Stock Alert: Moonshot Could Give Microsoft Another AI Revenue Stream
• Positive Sentiment: Microsoft’s deployment of more than 25 AI agents across its supply chain illustrates early enterprise use cases for agentic AI, including demand forecasting, freight routing and inventory management. Successful internal deployments could support broader adoption of Microsoft’s AI tools. Microsoft Puts 25 AI Agents to Work on Supply Chain Costs
• Positive Sentiment: Microsoft is spending heavily on AI infrastructure—approximately $175 billion this year—and has reassured employees that data-center investment is intended to support long-term growth. Azure reportedly surpassed $100 billion, while contracted backlog and commercial bookings remain major valuation supports. Microsoft Reassures Employees About AI Data Center Impacts
• Neutral Sentiment: Microsoft’s gains have helped lift major indexes, but the strength is concentrated in a few mega-cap technology stocks while small caps and many sectors weaken as bond yields rise. This creates a broader market-risk backdrop despite Microsoft’s relative strength. Dow Jones Futures: Microsoft, Titans Mask Market Weakness
• Negative Sentiment: One analyst argued that Microsoft’s valuation rerating may be largely complete for now, raising the risk of profit-taking after the recent monthly rally. At the current valuation, further gains may require continued upward revisions to cloud and AI growth expectations. Microsoft: The Rerating Is Probably Over For Now

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $513.53 on Monday. The business has a fifty day moving average price of $430.87 and a two-hundred day moving average price of $412.43. The stock has a market capitalization of $3.81 trillion, a PE ratio of 28.59, a P/E/G ratio of 1.65 and a beta of 1.10. 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 fifty-two week low of $349.20 and a fifty-two week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $87.62 billion. During the same period in the previous year, the company earned $3.65 EPS. The business's revenue for the quarter was up 17.7% compared to the same quarter last year. As a group, equities analysts predict that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.

Microsoft Announces Dividend

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

Analyst Upgrades and Downgrades

MSFT has been the topic of a number of recent analyst reports. Piper Sandler boosted their price target on Microsoft from $540.00 to $550.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 28th. Arete Research lifted their target price on Microsoft from $730.00 to $870.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Phillip Securities lowered Microsoft from a "strong-buy" rating to a "moderate buy" rating in a report on Monday, August 3rd. Sanford C. Bernstein set a $660.00 target price on Microsoft in a report on Monday, August 10th. Finally, Tigress Financial increased their price target on Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Forty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and a consensus target price of $560.27.

Insiders Place Their Bets

In other 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 transaction of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,810 shares of company stock worth $10,110,874 in the last 90 days. 0.03% of the stock is currently owned by corporate insiders.

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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