Denver PWM LLC Acquires 5,618 Shares of Microsoft Corporation $MSFT

Key Points

• Denver PWM LLC initiated a Microsoft position by purchasing 5,618 shares worth approximately $2.78 million, making Microsoft about 0.9% of its portfolio. Hedge funds and institutional investors collectively own 71.13% of the stock.
• Microsoft’s latest quarterly results exceeded expectations, with adjusted earnings of $4.74 per share and revenue of $90.01 billion, up 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $592.15, although insiders sold roughly $75.4 million of stock over the past 90 days.

Denver PWM LLC bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 5,618 shares of the software giant's stock, valued at approximately $2,783,000. Microsoft makes up approximately 0.9% of Denver PWM LLC's portfolio, making the stock its 12th largest position.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Bank of America Corp DE purchased a new position in shares of Microsoft in the second quarter valued at approximately $27,338,370,000. Legal & General Group Plc acquired a new position in shares of Microsoft in the second quarter valued at approximately $18,306,443,000. Amundi increased its stake in Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after buying an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP increased its stake in Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after buying an additional 2,784,809 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its stake in Microsoft by 64.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock worth $8,982,083,000 after buying an additional 9,493,778 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

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 completion of the sale, the chief executive officer directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Amy Hood sold 7,305 shares of the business's stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the transaction, the executive vice president owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. The trade was a 1.30% 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 a total of 150,314 shares of company stock valued at $75,404,992 in the last 90 days. Company insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Weiss Ratings upgraded shares of Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Melius Research set a $665.00 price target on shares of Microsoft and gave the stock a "buy" rating in a research note on Monday, October 5th. Truist Financial reaffirmed a "buy" rating and set a $575.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. Rothschild & Co Redburn set a $440.00 price objective on Microsoft in a research note on Monday, September 21st. Finally, Yorkville Ives started coverage on Microsoft in a report on Monday, October 5th. They issued an "outperform" rating and a $615.00 target price for the company. Forty-three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and an average target price of $592.15.

Microsoft Stock Down 2.2%

Shares of NASDAQ:MSFT opened at $521.08 on Friday. The firm's 50 day moving average price is $507.93 and its 200 day moving average price is $445.62. The stock has a market cap of $3.87 trillion, a price-to-earnings ratio of 29.01, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping 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 quarter in the previous year, the business posted $3.65 EPS. The firm's revenue was up 17.7% on a year-over-year basis. As a group, equities research analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. Microsoft's dividend payout ratio is presently 20.27%.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s AI diagnostic system reportedly diagnosed complex medical cases more than twice as often as generalist physicians in a simulation published in Science. The result supports the company’s ambitions in healthcare and “medical superintelligence.” Microsoft AI medical diagnostic study
• Positive Sentiment: Reports highlighted strong underlying cloud momentum: Azure annual revenue has surpassed $100 billion, cloud-services growth reached 43%, and Microsoft’s commercial backlog rose to approximately $678 billion. These trends could support the investment case if the company demonstrates continued acceleration in its upcoming earnings report. Microsoft cloud demand and backlog
• Positive Sentiment: CEO Satya Nadella said Microsoft is reorganizing around AI agents, broader model choice and lower-cost computing. The strategy could expand Copilot and Azure adoption across business workflows. Microsoft AI agent strategy
• Positive Sentiment: A strategic collaboration with Boehringer Ingelheim will pursue AI-backed clinical development and digital patient twins, providing another potential application for Microsoft’s cloud and AI platforms. Microsoft and Boehringer Ingelheim partnership
• Neutral Sentiment: Investors are focused on next week’s fiscal first-quarter earnings report. Analysts expect double-digit earnings growth, but the market increasingly wants evidence that Azure growth can keep pace with rivals and justify Microsoft’s substantial AI infrastructure investments. Microsoft earnings preview
• Negative Sentiment: Microsoft’s large AI capital expenditures remain a key valuation risk. While spending may create a long-term competitive moat, investors are concerned that data-center and infrastructure costs could pressure near-term returns, especially amid higher interest rates and market volatility. Microsoft AI spending and investment risk
• Negative Sentiment: Xbox announced pricing for cloud streaming of games users already own, prompting concerns about consumer reaction and pressure on Microsoft’s gaming business. Xbox cloud gaming pricing
• Negative Sentiment: Former CEO Bill Gates warned that AI could bring roughly two decades of disruption, reinforcing investor concerns about an AI investment bubble and the potential for expensive projects to produce uncertain returns. Bill Gates AI disruption comments

Microsoft Company Profile

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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