Galaxy Digital Capital Management GP LLC Acquires 13,741 Shares of Microsoft Corporation $MSFT

Key Points

• Galaxy Digital Capital Management acquired 13,741 Microsoft shares worth approximately $5.1 million, making Microsoft its sixth-largest holding at 2.5% of the portfolio. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $589.71. Microsoft recently exceeded earnings and revenue expectations, reporting $4.74 in quarterly EPS and $90.01 billion in revenue.
• Microsoft’s AI and Azure expansion offers growth potential, supported by new data-center power commitments and custom Maia chips, but investors are watching capital spending, margin pressure and U.K. regulatory scrutiny of its cloud and software businesses.

Galaxy Digital Capital Management GP LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to its most recent filing with the SEC. The firm acquired 13,741 shares of the software giant's stock, valued at approximately $5,126,000. Microsoft comprises approximately 2.5% of Galaxy Digital Capital Management GP LLC's holdings, making the stock its 6th largest holding.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Auto Owners Insurance Co boosted its holdings in Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock valued at $29,073,486,000 after acquiring an additional 60,009,531 shares during the last quarter. Legal & General Group Plc acquired a new stake in Microsoft in the second quarter worth about $18,306,443,000. Amundi raised its holdings 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 purchasing an additional 9,814,598 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings 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 purchasing an additional 2,784,809 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings 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 purchasing an additional 9,493,778 shares during the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Microsoft

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.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on MSFT. Evercore upgraded shares of Microsoft from an "underperform" rating to an "outperform" rating in a research report on Monday, October 5th. Wolfe Research cut shares of Microsoft from an "outperform" rating to a "hold" rating in a research report on Wednesday, September 23rd. William Blair assumed coverage on shares of Microsoft in a research note on Monday, October 5th. They set an "outperform" rating for the company. Piper Sandler boosted their price target on shares of Microsoft from $550.00 to $610.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 30th. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $589.71.

Insider Buying and Selling

In related news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft 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 directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 150,314 shares of company stock valued at $75,404,992. Insiders own 0.03% of the company's stock.

Microsoft Stock Performance

NASDAQ MSFT opened at $529.05 on Monday. The stock has a 50-day simple moving average of $505.53 and a 200 day simple moving average of $441.16. The company has a market capitalization of $3.93 trillion, a PE ratio of 29.46, a P/E/G ratio of 1.70 and a beta of 1.10. 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 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 earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $90.01 billion for the quarter, compared to analysts' expectations of $87.62 billion. During the same quarter last year, the business earned $3.65 earnings per share. The company's revenue was up 17.7% compared to the same quarter last year. Research analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is a boost 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 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

About Microsoft

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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