Gibbs Wealth Management Increases Stake in Microsoft Corporation $MSFT

Key Points

• Gibbs Wealth Management increased its Microsoft stake by 73.3% in the first quarter, bringing its holdings to 29,554 shares valued at approximately $10.94 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported a strong quarter, with earnings of $4.74 per share and revenue of $90.01 billion, exceeding analyst expectations; revenue rose 17.7% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $558.87.
• While AI-driven Azure growth, custom chips and international expansion support the outlook, investors face risks from rising data-center spending, margin pressure, customer concentration and recent insider selling. Microsoft also declared a quarterly dividend of $0.91 per share, yielding about 0.7%.

Gibbs Wealth Management grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 73.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 29,554 shares of the software giant's stock after purchasing an additional 12,502 shares during the quarter. Microsoft makes up about 1.4% of Gibbs Wealth Management's portfolio, making the stock its 13th biggest holding. Gibbs Wealth Management's holdings in Microsoft were worth $10,940,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of the business. WFA Asset Management Corp grew its stake in Microsoft by 27.0% during the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant's stock valued at $427,000 after acquiring an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. lifted its stake in Microsoft by 0.3% in the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant's stock worth $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC lifted its stake in Microsoft by 410.4% in the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant's stock worth $1,144,000 after purchasing an additional 2,138 shares in the last quarter. Wealth Group Ltd. boosted its holdings in shares of Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant's stock worth $1,000,000 after purchasing an additional 28 shares during the last quarter. Finally, Eagle Capital Management LLC boosted its holdings in shares of Microsoft by 0.4% during the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant's stock worth $9,735,000 after purchasing an additional 96 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Stock Performance

NASDAQ MSFT opened at $499.99 on Monday. The stock has a market cap of $3.71 trillion, a PE ratio of 27.84, a P/E/G ratio of 1.61 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 twelve month low of $349.20 and a twelve month high of $553.72. The stock has a fifty day simple moving average of $404.86 and a 200-day simple moving average of $406.59.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data 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. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company's quarterly revenue was up 17.7% on a year-over-year basis. During the same period last year, the company earned $3.65 EPS. Equities analysts anticipate that Microsoft Corporation will post 19.58 earnings per share for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date 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 currently 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Citi raised its Microsoft price target to $600. The upgrade follows Microsoft’s quarterly Azure performance, with analysts highlighting the 43% cloud-revenue increase and stronger-than-expected earnings as evidence that AI demand is translating into accelerating cloud growth. Citi Raises Microsoft Stock Target to $600
• Positive Sentiment: Microsoft’s custom AI chips may improve cloud economics. CEO Satya Nadella said the company’s internally developed chips can deliver efficiency gains of up to 40%. Better cost and energy efficiency could help Microsoft support AI workloads while protecting Azure margins. Microsoft Custom AI Chips Improve Efficiency
• Positive Sentiment: Azure is expanding in India. Microsoft opened a major Hyderabad data-center region and is committing approximately $20.5 billion to its Indian cloud and AI operations. Early customers include Adani Group and HDFC Bank, supporting the case for long-term international Azure growth. Microsoft Opens Largest India Data Center Hub
• Positive Sentiment: Fundamentals and institutional support remain strong. Microsoft recently exceeded quarterly revenue and EPS expectations, while Bill Ackman’s Pershing Square holds a reported $2.4 billion MSFT position. Scotiabank also raised its fiscal 2027 EPS estimate and maintained an Outperform rating. Bill Ackman Microsoft Stake
• Neutral Sentiment: AI demand is powerful but concentrated. Reports suggest OpenAI may account for a substantial portion of Microsoft’s AI sales, creating both a major growth engine and customer-concentration risk. Microsoft’s large AI backlog also does not guarantee equivalent future profitability.
• Negative Sentiment: Spending, margins and valuation remain concerns. Rising data-center capital expenditures and lower cloud gross margins could pressure cash flow if AI infrastructure costs grow faster than revenue. After the sharp post-earnings rally, the stock is also more vulnerable to profit-taking or disappointing guidance.
• Negative Sentiment: Insider sales and securities litigation add headline risk. CEO Judson Althoff sold 10,000 shares for roughly $4.9 million, and multiple law firms are publicizing a securities class action with an August 11 lead-plaintiff deadline. These developments do not establish wrongdoing but may weigh on near-term sentiment.

Insider Buying and Selling at Microsoft

In related news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares of the company's stock, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 transaction of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares of the company's stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 38,572 shares of company stock worth $17,775,330 over the last three months. Insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently commented on MSFT shares. Sanford C. Bernstein increased their price target on Microsoft from $646.00 to $647.00 and gave the company an "outperform" rating in a report on Thursday, July 30th. Wolfe Research reissued an "outperform" rating and set a $550.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Barclays dropped their target price on Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Oppenheimer reiterated an "outperform" rating and set a $515.00 price target on shares of Microsoft in a report on Wednesday, July 22nd. Finally, President Capital upped their price objective on shares of Microsoft from $500.00 to $520.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $558.87.

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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