Connor Clark & Lunn Investment Management Ltd. Acquires New Holdings in Microsoft Corporation $MSFT

Key Points

• Connor Clark & Lunn Investment Management acquired 1.7 million Microsoft shares worth approximately $635.7 million, making MSFT its 17th-largest holding; institutional investors collectively own 71.13% of the company.
• Microsoft reported quarterly revenue of $90.01 billion and adjusted EPS of $4.74, surpassing estimates, while revenue rose 17.7% year over year. The company also increased its quarterly dividend to $0.98 per share.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $589.71 price target, though investors are watching whether heavy AI infrastructure spending produces sustainable margins amid regulatory scrutiny and rising costs.

Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 1,704,284 shares of the software giant's stock, valued at approximately $635,732,000. Microsoft comprises approximately 1.2% of Connor Clark & Lunn Investment Management Ltd.'s investment portfolio, making the stock its 17th largest holding.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Capital Square LLC purchased a new position in shares of Microsoft in the 2nd quarter worth $2,035,000. Meiji Yasuda Asset Management Co Ltd. acquired a new stake in Microsoft during the 2nd quarter valued at approximately $56,775,000. Clarion Wealth Managment Partners LLC bought a new position in shares of Microsoft during the second quarter worth about $1,585,000. Te Ahumairangi Investment Management Ltd bought a new position in Microsoft during the second quarter worth $58,385,000. Finally, Magellan Asset Management Ltd bought a new position in shares of Microsoft during the second quarter valued at approximately $169,977,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive
• Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource
• Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper
• Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins.
• Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip
• Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on MSFT shares. Benchmark reiterated a "buy" rating on shares of Microsoft in a research report on Friday, July 24th. William Blair assumed coverage on shares of Microsoft in a research note on Monday, October 5th. They issued an "outperform" rating on the stock. TD Cowen upped their target price on Microsoft from $540.00 to $625.00 and gave the company a "buy" rating in a report on Thursday. KeyCorp reissued an "overweight" rating on shares of Microsoft in a research note on Thursday, September 3rd. Finally, The Goldman Sachs Group restated a "buy" rating and set a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and a consensus price target of $589.71.

Insider Transactions at Microsoft

In other news, CEO Judson Althoff sold 10,000 shares of the 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 sale, the chief executive officer directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated 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 sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is currently owned by company insiders.

Microsoft Stock Performance

Shares of MSFT stock opened at $529.05 on Friday. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The stock has a market cap of $3.93 trillion, a PE ratio of 29.46, a price-to-earnings-growth ratio of 1.73 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. The stock has a 50-day moving average of $505.53 and a 200-day moving average of $440.59.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the company posted $3.65 earnings per share. As a group, sell-side analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is 20.27%.

Microsoft 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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