Dagco Inc. Purchases 1,973 Shares of Microsoft Corporation $MSFT

Key Points

• Dagco Inc. increased its Microsoft stake by 14.7% in the second quarter, acquiring 1,973 additional shares for a total of 15,361 shares valued at approximately $5.73 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with $4.74 in earnings per share and $90.01 billion in revenue; revenue rose 17.7% year over year. The stock recently traded near $513.53, with a market capitalization of about $3.81 trillion.
• Microsoft declared a quarterly dividend of $0.91 per share, representing an annualized payout of $3.64 and a 0.7% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $560.27, although some caution that the recent valuation rerating may be largely complete.

Dagco Inc. grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 14.7% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 15,361 shares of the software giant's stock after acquiring an additional 1,973 shares during the period. Microsoft accounts for approximately 1.1% of Dagco Inc.'s investment portfolio, making the stock its 21st biggest holding. Dagco Inc.'s holdings in Microsoft were worth $5,730,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Longfellow Investment Management Co. LLC raised its stake in shares of Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after purchasing an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new stake in Microsoft in the fourth quarter worth about $34,000. Timmons Wealth Management LLC purchased a new position in shares of Microsoft during the 4th quarter valued at $36,000. Fairway Wealth LLC raised its position in shares of Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares during the period. Finally, LSV Asset Management purchased a new stake in shares of Microsoft during the fourth quarter worth $44,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft Stock Performance

NASDAQ:MSFT opened at $513.53 on Friday. 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 50-day simple moving average of $430.87 and a two-hundred day simple moving average of $412.45. The firm has a market capitalization of $3.81 trillion, a PE ratio of 28.59, a P/E/G ratio of 1.63 and a beta of 1.11. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share 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 analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.65 EPS. Analysts forecast that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. TD Cowen restated a "buy" rating and set a $540.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Dbs Bank reduced their price objective on Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. BNP Paribas Exane decreased their price objective on Microsoft from $556.00 to $555.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. Tigress Financial increased their target price on Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, Jefferies Financial Group restated a "buy" rating on shares of Microsoft in a report on Monday, May 4th. Forty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $560.27.

Microsoft News Roundup

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

Insider Buying and Selling at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction that occurred 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 transaction, the executive vice president owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Judson Althoff sold 10,000 shares of the 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 sale, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,310 shares of company stock worth $17,256,219 in the last 90 days. 0.03% of the stock is currently owned by insiders.

About Microsoft

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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