Gould Capital LLC Raises Stock Holdings in Microsoft Corporation $MSFT

Key Points

• Gould Capital increased its Microsoft stake by 19.9% in the second quarter, bringing its holdings to 12,223 shares valued at approximately $4.56 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Wall Street remains broadly positive, with 41 analysts rating Microsoft a Buy and a consensus target price of $578.73. Optimism centers on Azure growth, Copilot demand and AI infrastructure investments, though some analysts have lowered ratings or price targets.
• Microsoft reported quarterly revenue of $90.01 billion and adjusted earnings of $4.74 per share, both ahead of estimates, while revenue rose 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, although insider selling and concerns about valuation and heavy AI spending remain potential risks.

Gould Capital LLC boosted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 19.9% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 12,223 shares of the software giant's stock after purchasing an additional 2,029 shares during the quarter. Microsoft comprises 2.5% of Gould Capital LLC's investment portfolio, making the stock its 9th biggest position. Gould Capital LLC's holdings in Microsoft were worth $4,560,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently bought and sold shares of the company. Frankly Finances LLC acquired a new stake in shares of Microsoft during the 2nd quarter worth approximately $35,000. Fiduciary Advisors Inc. increased its stake in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after acquiring an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new position in Microsoft during the second quarter valued at approximately $60,000. Glynn Capital Management LLC raised its position in Microsoft by 34.2% during the second quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock valued at $95,000 after purchasing an additional 65 shares in the last quarter. Finally, Lifetime Wealth Management P.C. bought a new stake in Microsoft during the fourth quarter worth $101,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on MSFT. BMO Capital Markets assumed coverage on Microsoft in a report on Monday. They issued an "outperform" rating on the stock. BNP Paribas Exane cut Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday. Barclays dropped their price objective on Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Evercore upgraded Microsoft from an "underperform" rating to an "outperform" rating in a research report on Monday. Finally, Melius Research set a $665.00 target price on Microsoft and gave the stock a "buy" rating in a research note on Monday. Forty-one investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $578.73.

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction on Tuesday, August 4th. The shares were 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 of the company's stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership?
• Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating
• Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date
• Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program
• Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies

Microsoft Price Performance

Shares of MSFT opened at $522.61 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.88 trillion, a PE ratio of 29.10, a PEG ratio of 1.70 and a beta of 1.10. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The business has a 50-day simple moving average of $499.74 and a two-hundred day simple moving average of $434.03.

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 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 analyst estimates of $87.62 billion. During the same period last year, the firm posted $3.65 earnings per share. The business's revenue for the quarter was up 17.7% on a year-over-year basis. Analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

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

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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