Entropy Technologies LP Makes New $17.55 Million Investment in Microsoft Corporation $MSFT

Key Points

• Entropy Technologies LP initiated a $17.55 million Microsoft position by purchasing 47,402 shares in the first quarter, making Microsoft about 0.8% of the fund’s holdings. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with earnings of $4.74 per share and revenue of $90.01 billion, surpassing analyst expectations and representing 17.7% year-over-year revenue growth.
• Investor sentiment remains broadly positive, supported by Microsoft’s AI-chip plans, Azure growth and backlog, capital returns, and a consensus “Moderate Buy” rating with a $559.16 price target; risks include AI-spending execution, legal scrutiny, and recent insider selling.

Entropy Technologies LP purchased a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 47,402 shares of the software giant's stock, valued at approximately $17,547,000. Microsoft makes up about 0.8% of Entropy Technologies LP's holdings, making the stock its 19th biggest position.

Several other large investors also recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC lifted its holdings 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 valued at $29,000 after purchasing an additional 20 shares in the last quarter. Bernzott Capital Advisors bought a new position in shares of Microsoft during the fourth quarter worth about $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft during the fourth quarter worth about $36,000. Fairway Wealth LLC raised its position in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after buying an additional 66 shares during the last quarter. Finally, LSV Asset Management acquired a new stake in Microsoft in the 4th quarter valued at approximately $44,000. Institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

Shares of MSFT opened at $506.06 on Tuesday. The company has a market cap of $3.76 trillion, a price-to-earnings ratio of 28.18, a PEG ratio of 1.61 and a beta of 1.10. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company's fifty day simple moving average is $405.77 and its 200 day simple moving average is $406.95. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced 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. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. During the same quarter last year, the company posted $3.65 earnings per share. The company's revenue for the quarter was up 17.7% compared to the same quarter last year. On average, research analysts forecast that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft's dividend payout ratio (DPR) is 20.27%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Maia 300 chip plans support the rally: Reports say Microsoft could unveil its Maia 300 AI accelerator as early as September and secure capacity for more than 300,000 chips by 2027, with longer-term ambitions exceeding one million units. The effort could reduce Microsoft’s dependence on Nvidia, lower AI-computing costs and potentially attract customers such as Anthropic. Microsoft plans to unveil its new Maia 300 AI chip this fall
• Positive Sentiment: Analysts see measured AI investment and further upside: Bernstein raised its Microsoft price target from $647 to $660, arguing that the company is not building data-center capacity too aggressively. The firm said new infrastructure would remain useful for Azure even if AI demand moderated. Microsoft's Datacenter Spending Is Disciplined
• Positive Sentiment: Cloud growth and backlog underpin investor confidence: JPMorgan cited Microsoft’s Azure expansion, substantial backlog and improving AI monetization while supporting higher market-wide earnings forecasts. Other bullish commentary points to strong recent results, including reported Azure growth and broad Copilot adoption. Microsoft Stock Rises as JPMorgan Backs AI Payoff
• Positive Sentiment: Capital returns add support: Microsoft’s large-scale dividends and share repurchases reinforce its position as a cash-generating technology leader, although investors are also evaluating how much capital is being redirected toward AI infrastructure. Microsoft Stock Runs One of the Market's Biggest Cash-Return Machines
• Neutral Sentiment: AI opportunity comes with execution risks: Analysts continue debating whether megacap AI spending will generate adequate cash flow. Separately, reports of AI models reaching real-world systems could increase scrutiny of Microsoft’s autonomous-agent products and enterprise security controls.
• Negative Sentiment: Legal notices remain an overhang: Investor-rights firms are promoting a securities class action involving purchases made between May 1, 2025, and January 28, 2026, with an August 11 lead-plaintiff deadline. The notices do not establish liability but could add reputational and litigation risk.

Insider Buying and Selling

In other Microsoft 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 value 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. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Judson Althoff sold 15,500 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer directly owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 38,572 shares of company stock worth $17,775,330. Company insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on MSFT shares. Morgan Stanley reaffirmed an "overweight" rating on shares of Microsoft in a research report on Thursday, July 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Microsoft in a research report on Monday, July 6th. Barclays reduced their target price on shares of Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Stifel Nicolaus raised their target price on shares of Microsoft from $400.00 to $450.00 and gave the company a "hold" rating in a research report on Thursday, July 30th. Finally, BNP Paribas Exane lowered their price target on shares of Microsoft from $556.00 to $555.00 and set an "outperform" rating on the stock in a research note on Friday, May 1st. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and a consensus price target of $559.16.

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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