Empowered Funds LLC Has $298.72 Million Holdings in Microsoft Corporation $MSFT

Key Points

• Empowered Funds LLC increased its Microsoft stake by 44.6% in the first quarter, bringing its holdings to 806,973 shares valued at approximately $298.7 million. Microsoft now represents about 1.9% of the firm’s portfolio.
• Microsoft exceeded quarterly expectations, reporting $4.74 in earnings per share and $90.01 billion in revenue, with revenue up 17.7% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $560.27.
• While Azure growth and AI monetization support the bullish outlook, investors face concerns over potential advanced-chip shortages and whether heavy AI infrastructure spending will generate sufficient returns; insiders have also sold shares recently.

Empowered Funds LLC grew its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 44.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 806,973 shares of the software giant's stock after purchasing an additional 248,709 shares during the quarter. Microsoft makes up approximately 1.9% of Empowered Funds LLC's investment portfolio, making the stock its 3rd largest holding. Empowered Funds LLC's holdings in Microsoft were worth $298,717,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after purchasing an additional 20 shares during the period. Bernzott Capital Advisors bought a new position in Microsoft during the 4th quarter worth $34,000. Timmons Wealth Management LLC bought a new position in Microsoft during the 4th quarter worth $36,000. Fairway Wealth LLC lifted its holdings in shares of Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after buying an additional 66 shares in the last quarter. Finally, LSV Asset Management acquired 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.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Raymond James Financial downgraded shares of Microsoft from a "market perform" rating to a "market perform" rating in a research note on Tuesday, May 5th. Argus dropped their price objective on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research note on Friday, July 10th. Tigress Financial boosted their price objective on shares of Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Scotiabank restated an "outperform" rating and set a $510.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $560.27.

Microsoft Price Performance

MSFT stock opened at $480.35 on Tuesday. The company's 50-day moving average price is $412.64 and its two-hundred day moving average price is $408.06. The firm has a market cap of $3.57 trillion, a P/E ratio of 26.75, a P/E/G ratio of 1.59 and a beta of 1.10. 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 Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm's quarterly revenue was up 17.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.65 EPS. On average, analysts anticipate that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.8%. Microsoft's dividend payout ratio is presently 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s Azure business reportedly surpassed $100 billion in annual revenue, reinforcing confidence that AI demand is translating into substantial cloud growth. The company’s strong recent earnings, rising Microsoft 365 seat count and increasing adoption of premium E7 and Copilot offerings provide additional long-term growth support. Azure revenue article Microsoft 365 seats article
• Positive Sentiment: William Blair reaffirmed a Buy rating, citing early AI monetization and a constructive long-term risk-reward profile. Other coverage highlighted Microsoft’s ability to generate cash while investing heavily in AI infrastructure, distinguishing it from some competitors. Microsoft Buy rating article
• Positive Sentiment: Microsoft is developing its Maia 300 AI accelerator, potentially reducing dependence on Nvidia processors and improving supply flexibility and infrastructure economics over time. Maia 300 chip article
• Neutral Sentiment: A partnership with Plug Power tested hydrogen fuel-cell backup power for Microsoft data centers. The trial could support data-center resilience, but Plug’s CEO said it does not represent a strategic pivot or an immediate material change for Microsoft. Plug Power and Microsoft article
• Negative Sentiment: A Guardian investigation raised questions about a possible shortfall in advanced AI chips installed across Microsoft’s facilities relative to its stated data-center expansion plans. Reports cited a potential gap of roughly 2.2 million chips, fueling concerns about deployment timing, capacity and near-term AI revenue growth. Microsoft chip capacity article
• Negative Sentiment: Morgan Stanley warned that heavy AI capital expenditure and rising debt-related obligations could pressure hyperscaler credit quality. Although Microsoft has a strong balance sheet, the warning increases scrutiny of whether massive infrastructure spending will generate adequate returns. Morgan Stanley hyperscaler warning

Insiders Place Their Bets

In other news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction 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 transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 37,310 shares of company stock worth $17,256,219. Company insiders own 0.03% of the company's stock.

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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