Kahn Brothers Group Inc. Purchases 2,168 Shares of Microsoft Corporation $MSFT

Key Points

• Kahn Brothers Group acquired 2,168 Microsoft shares worth approximately $809,000 in the second quarter, while institutional investors collectively own 71.13% of the company.
• Wall Street remains bullish: 43 analysts rate Microsoft a Buy, with an average “Moderate Buy” rating and a consensus price target of $592.15. The company recently beat quarterly earnings and revenue estimates, reporting $4.74 EPS and $90.01 billion in revenue.
• Microsoft raised its quarterly dividend to $0.98 per share, but insiders have sold roughly $75.4 million of stock over the past 90 days. Investors are also weighing strong AI and cloud momentum against elevated infrastructure spending and valuation risks.

Kahn Brothers Group Inc. acquired a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 2,168 shares of the software giant's stock, valued at approximately $809,000.

Several other institutional investors and hedge funds have also recently modified their holdings of the company. Strategic Wealth Advisors LLC grew its position in Microsoft by 1.7% in the 2nd quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant's stock valued at $549,000 after acquiring an additional 24 shares in the last quarter. Friedenthal Financial increased its stake in Microsoft by 6.2% during the first quarter. Friedenthal Financial now owns 431 shares of the software giant's stock worth $160,000 after purchasing an additional 25 shares during the period. Sequent Planning LLC lifted its position in shares of Microsoft by 0.7% during the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock worth $1,382,000 after purchasing an additional 25 shares in the last quarter. Lee Johnson Capital Management LLC lifted its position in shares of Microsoft by 3.8% during the second quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock worth $256,000 after purchasing an additional 25 shares in the last quarter. Finally, Riverpoint Wealth Management Holdings LLC lifted its position in shares of Microsoft by 0.5% during the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after purchasing an additional 26 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Wall Street Analysts Forecast Growth

MSFT has been the subject of several recent research reports. Citigroup raised their price objective on shares of Microsoft from $600.00 to $636.00 and gave the company a "buy" rating in a research note on Thursday, October 15th. Barclays upped their target price on shares of Microsoft from $512.00 to $600.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 13th. TD Cowen increased their target price on shares of Microsoft from $540.00 to $625.00 and gave the stock a "buy" rating in a report on Thursday, October 15th. Needham & Company LLC assumed coverage on shares of Microsoft in a research report on Wednesday, September 23rd. They issued a "buy" rating for the company. Finally, Guggenheim restated a "buy" rating and issued a $586.00 price target on shares of Microsoft in a research note on Wednesday. Forty-three 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. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $592.15.

Microsoft Stock Performance

NASDAQ:MSFT opened at $521.08 on Friday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. 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 firm has a market capitalization of $3.87 trillion, a PE ratio of 29.01, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10. The business's fifty day moving average price is $507.93 and its 200 day moving average price is $445.62.

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 (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The company 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%. Microsoft's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the previous year, the business earned $3.65 EPS. On average, sell-side 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. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. 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 annualized dividend and a dividend yield of 0.8%. Microsoft's dividend payout ratio is 20.27%.

Insiders Place Their Bets

In related news, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total value of $3,984,293.10. Following the sale, the executive vice president owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. The trade was a 1.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 150,314 shares of company stock worth $75,404,992 over the last 90 days. Insiders own 0.03% of the company's stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s AI diagnostic system reportedly diagnosed complex medical cases more than twice as often as generalist physicians in a simulation published in Science. The result supports the company’s ambitions in healthcare and “medical superintelligence.” Microsoft AI medical diagnostic study
• Positive Sentiment: Reports highlighted strong underlying cloud momentum: Azure annual revenue has surpassed $100 billion, cloud-services growth reached 43%, and Microsoft’s commercial backlog rose to approximately $678 billion. These trends could support the investment case if the company demonstrates continued acceleration in its upcoming earnings report. Microsoft cloud demand and backlog
• Positive Sentiment: CEO Satya Nadella said Microsoft is reorganizing around AI agents, broader model choice and lower-cost computing. The strategy could expand Copilot and Azure adoption across business workflows. Microsoft AI agent strategy
• Positive Sentiment: A strategic collaboration with Boehringer Ingelheim will pursue AI-backed clinical development and digital patient twins, providing another potential application for Microsoft’s cloud and AI platforms. Microsoft and Boehringer Ingelheim partnership
• Neutral Sentiment: Investors are focused on next week’s fiscal first-quarter earnings report. Analysts expect double-digit earnings growth, but the market increasingly wants evidence that Azure growth can keep pace with rivals and justify Microsoft’s substantial AI infrastructure investments. Microsoft earnings preview
• Negative Sentiment: Microsoft’s large AI capital expenditures remain a key valuation risk. While spending may create a long-term competitive moat, investors are concerned that data-center and infrastructure costs could pressure near-term returns, especially amid higher interest rates and market volatility. Microsoft AI spending and investment risk
• Negative Sentiment: Xbox announced pricing for cloud streaming of games users already own, prompting concerns about consumer reaction and pressure on Microsoft’s gaming business. Xbox cloud gaming pricing
• Negative Sentiment: Former CEO Bill Gates warned that AI could bring roughly two decades of disruption, reinforcing investor concerns about an AI investment bubble and the potential for expensive projects to produce uncertain returns. Bill Gates AI disruption comments

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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