Capital Investment Management Inc. Has $1.41 Million Position in Microsoft Corporation $MSFT

Key Points

• Capital Investment Management reduced its Microsoft stake by 23.3% in the second quarter, selling 1,150 shares and retaining 3,791 shares valued at approximately $1.41 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue of $90.01 billion and EPS of $4.74, exceeding analyst expectations; revenue increased 17.7% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $564.27.
• AI and Azure growth remain key catalysts, but investors are monitoring rising infrastructure costs, declining cloud margins and insider stock sales. Microsoft also raised transparency around Azure revenue and plans to report it separately beginning in fiscal 2027.

Capital Investment Management Inc. lessened its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 23.3% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 3,791 shares of the software giant's stock after selling 1,150 shares during the period. Microsoft accounts for about 0.4% of Capital Investment Management Inc.'s portfolio, making the stock its 21st biggest position. Capital Investment Management Inc.'s holdings in Microsoft were worth $1,414,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in Microsoft by 2.3% during the fourth quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant's stock worth $347,211,391,000 after buying an additional 15,955,898 shares in the last quarter. State Street Corp raised its position in shares of Microsoft by 2.1% in the 4th quarter. State Street Corp now owns 306,150,608 shares of the software giant's stock valued at $148,060,557,000 after buying an additional 6,388,930 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Microsoft by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant's stock valued at $88,056,019,000 after buying an additional 1,911,142 shares in the last quarter. Morgan Stanley lifted its holdings in shares of Microsoft by 0.8% during the 4th quarter. Morgan Stanley now owns 121,220,561 shares of the software giant's stock worth $58,624,690,000 after acquiring an additional 980,439 shares during the period. Finally, Norges Bank acquired a new stake in shares of Microsoft during the 4th quarter worth approximately $50,664,631,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s decision to disclose Azure revenue separately beginning in fiscal 2027 is improving visibility into its cloud business. Azure generated $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, while the company’s remaining performance obligations reached $678 billion. The clearer reporting may help investors assess Microsoft’s position against Amazon Web Services and Google Cloud. Microsoft Finally Reveals Azure’s Core
• Positive Sentiment: Stifel raised its Microsoft price target to $530, citing improving Copilot adoption and artificial-intelligence momentum. OpenAI’s launch of GPT-6 Astra could also benefit Microsoft because Azure customers are reportedly already using the model, strengthening the strategic value of Microsoft’s OpenAI relationship. Stifel raises Microsoft price target
• Neutral Sentiment: Microsoft is reorganizing its reporting structure around “Devices and Consumer” and “Agents and Infra.” The change could make AI economics easier to evaluate, but it may also increase scrutiny of spending and margins once the new disclosures begin.
• Negative Sentiment: Investors remain concerned that Microsoft’s AI buildout is becoming increasingly expensive. Capital expenditures reached about $41 billion in the latest quarter, cloud gross margin reportedly fell to roughly 65% from 67%, and the company plans to continue adding data centers and AI capacity. The risk is that depreciation, power and chip costs could delay returns on the large backlog. Microsoft faces pressure despite cloud and AI growth
• Negative Sentiment: CEO Satya Nadella sold 86,525 shares worth approximately $43.4 million. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a business signal, but the transaction can still add short-term sentiment pressure after the stock’s run-up. Satya Nadella sells Microsoft stock
• Negative Sentiment: Microsoft is limiting Xbox Game Pass cloud gaming to 15 hours per month for some subscribers as infrastructure costs rise. The move may improve service economics, but it risks frustrating users and weakening Microsoft’s consumer-gaming proposition. Microsoft limits Xbox cloud gaming

Insider Buying and Selling

In other news, CEO Judson Althoff sold 10,000 shares of Microsoft 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 transaction, the chief executive officer owned 100,447 shares in the company, 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was 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 directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 105,835 shares of company stock worth $52,468,575 in the last ninety days. Company insiders own 0.03% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on MSFT. Oppenheimer reissued an "outperform" rating and issued a $515.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. Barclays decreased their price target on Microsoft from $545.00 to $512.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Citigroup reissued a "market outperform" rating on shares of Microsoft in a report on Monday, August 31st. Bank of America upped their price objective on Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research report on Tuesday, September 1st. Finally, Argus reduced their price objective on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $564.27.

Microsoft Price Performance

Shares of MSFT opened at $499.70 on Monday. 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 $3.71 trillion, a price-to-earnings ratio of 27.82, a PEG ratio of 1.61 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a fifty day moving average of $444.52 and a 200-day moving average of $415.90.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted 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 return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period last year, the company earned $3.65 earnings per share. The business's quarterly revenue was up 17.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The firm 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 $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft's dividend payout ratio (DPR) is 20.27%.

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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