Hudson Portfolio Management LLC Makes New $1.41 Million Investment in Microsoft Corporation $MSFT

Key Points

• Hudson Portfolio Management initiated a $1.41 million Microsoft position during the second quarter, purchasing 3,789 shares; Microsoft now represents about 1.1% of its portfolio.
• Institutional ownership remains high at 71.13%, with several other funds—including Daiichi Life Insurance and Elevation Point Wealth Partners—also establishing significant new positions.
• Microsoft reported better-than-expected quarterly results, with revenue up 17.7% year over year, while analysts remain broadly bullish on AI-driven Azure and Copilot growth; the company also raised its quarterly dividend to $0.98 per share.

Hudson Portfolio Management LLC purchased a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 3,789 shares of the software giant's stock, valued at approximately $1,413,000. Microsoft makes up approximately 1.1% of Hudson Portfolio Management LLC's portfolio, making the stock its 21st largest position.

Other institutional investors and hedge funds have also modified their holdings of the company. Elevation Point Wealth Partners LLC acquired a new position in shares of Microsoft in the second quarter worth $87,240,000. Greenland Capital Management LP purchased a new stake in shares of Microsoft during the second quarter worth $830,000. Alta Advisers Ltd acquired a new stake in Microsoft during the second quarter valued at $10,822,000. Daiichi Life Insurance Co. Ltd. acquired a new stake in Microsoft during the second quarter valued at $145,747,000. Finally, Foyston Gordon & Payne Inc acquired a new stake in Microsoft during the second quarter valued at $29,095,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: UBS raised its price target to $675 from $525 and reiterated a Buy rating, citing accelerating Azure and Microsoft 365 growth driven by artificial intelligence. The firm believes Microsoft’s valuation remains reasonable despite its recent rally. UBS raises Microsoft price target
• Positive Sentiment: Multiple Wall Street firms have lifted their targets, with analysts highlighting Azure momentum, approximately 30 million Copilot seats, Microsoft’s commercial backlog and the potential for a larger-than-usual earnings beat. The October 28 results will provide an important test of whether AI spending is translating into revenue and profit.
• Positive Sentiment: Microsoft’s Maia 300 custom AI accelerator is expected to scale across Azure data centers and reportedly deliver more tokens per megawatt than conventional GPU systems. The chip could reduce inference costs and Microsoft’s dependence on Nvidia and AMD hardware. Microsoft Maia 300 AI chip
• Positive Sentiment: AI care-management company Tucuvi joined Microsoft’s Pegasus startup program, potentially expanding Microsoft’s enterprise AI pipeline and go-to-market reach in healthcare. Microsoft also increased its quarterly dividend to $0.98 from $0.91, signaling continued confidence in cash generation. Tucuvi joins Microsoft Pegasus Program
• Neutral Sentiment: Reports that Azure management is seeking roughly 20% cost reductions could improve efficiency and margins, but also underscore the pressure created by Microsoft’s substantial AI data-center investments.
• Neutral Sentiment: Microsoft’s $10 million contribution to a White House ballroom project is unlikely to affect near-term financial results, though it could attract political or reputational scrutiny. Microsoft White House ballroom contribution
• Negative Sentiment: Higher inflation and bond yields have pressured AI valuations and raised concerns about the financing cost and returns of large infrastructure projects. Microsoft’s strong balance sheet makes it less vulnerable than smaller AI companies, but valuation sensitivity remains a risk.
• Negative Sentiment: Phillip Securities downgraded Microsoft to Hold, while reports of security vulnerabilities, executive share sales and intense competition from rapidly growing AI companies add caution. Amy Hood’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance.

Microsoft Trading Up 1.1%

Microsoft stock opened at $539.44 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a market capitalization of $4.01 trillion, a price-to-earnings ratio of 30.04, a PEG ratio of 1.71 and a beta of 1.10. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company's fifty day moving average price is $504.95 and its two-hundred day moving average price is $439.96.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced 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. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. During the same quarter in the previous year, the firm earned $3.65 earnings per share. The business's quarterly revenue was up 17.7% compared to the same quarter last year. On average, analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. 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%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is currently 20.27%.

Insider Buying and Selling

In related news, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction that occurred 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 directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Amy Hood sold 41,674 shares of the business's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 150,314 shares of company stock valued at $75,404,992 over the last 90 days. 0.03% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have commented on MSFT. Tigress Financial boosted their target price on Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Bank of America raised their price target on Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. Jefferies Financial Group raised their price target on Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $600.00 price target on shares of Microsoft in a report on Monday. Finally, KeyCorp reissued an "overweight" rating on shares of Microsoft in a research note on Thursday, September 3rd. Forty-two research 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. According to MarketBeat, Microsoft has a consensus rating of "Moderate Buy" and a consensus price target of $589.71.

Microsoft Company Profile

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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