Meridian Management Co. Grows Position in Microsoft Corporation $MSFT

Key Points

• Meridian Management increased its Microsoft position by 1,135.6% during the first quarter, adding 6,087 shares to hold 6,623 shares valued at approximately $2.45 million. Institutional investors collectively own 71.13% of MSFT.
• Microsoft reported stronger-than-expected quarterly results: adjusted EPS was $4.74 versus $4.24 expected, while revenue reached $90.01 billion, up 17.7% year over year. Azure growth accelerated 43%, annual Azure revenue surpassed $100 billion, and Microsoft 365 Copilot exceeded 30 million paid seats.
• Analysts remain broadly bullish, but insider selling is a counterpoint. Forty-two analysts rate MSFT a Buy and five a Hold, with an average price target of $558.64; meanwhile, executives sold a combined 23,762 shares worth about $10.5 million over the past 90 days.

Meridian Management Co. lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1,135.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,623 shares of the software giant's stock after purchasing an additional 6,087 shares during the quarter. Meridian Management Co.'s holdings in Microsoft were worth $2,452,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of the stock. Longfellow Investment Management Co. LLC raised its position in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after buying an additional 20 shares in the last quarter. Bernzott Capital Advisors purchased a new position in Microsoft in the fourth quarter worth $34,000. Timmons Wealth Management LLC purchased a new position in Microsoft in the fourth quarter worth $36,000. Fairway Wealth LLC increased its stake in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after acquiring an additional 66 shares during the last quarter. Finally, University of Illinois Foundation bought a new position in Microsoft in the second quarter valued at $50,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure growth exceeded expectations: Azure revenue increased 43%, ahead of roughly 40% analyst expectations, and annual Azure revenue surpassed $100 billion for the first time. The performance eased concerns that demand for AI infrastructure might be slowing. Microsoft tops quarterly cloud growth estimates
• Positive Sentiment: Strong earnings beat: Microsoft reported $4.74 in adjusted EPS versus a $4.24 consensus estimate and $90.01 billion in revenue versus expectations of $87.62 billion. Revenue rose 17.7% year over year, while profit increased about 31%. Microsoft fourth-quarter earnings
• Positive Sentiment: AI monetization is accelerating: Microsoft 365 Copilot surpassed 30 million paid seats, while management described the next growth phase as a “per seat plus consumption” model. Investors viewed Azure and Copilot adoption as evidence that AI investments are translating into commercial demand.
• Positive Sentiment: Spending concerns moderated: Microsoft held its capital-expenditure outlook broadly steady and said it expects continued cash generation in fiscal 2027. Management also said GPU spending could be adjusted if demand weakens, helping counter fears of unchecked AI-related cash burn. Microsoft keeps capex forecast unchanged
• Positive Sentiment: Backlog and analyst support improved: Commercial remaining performance obligations reached a record $678 billion, up 84% year over year. RBC, Goldman Sachs, BMO, TD Cowen and DA Davidson were among firms maintaining positive ratings or raising targets.
• Neutral Sentiment: Xbox strategy: New gaming chief Asha Sharma aims to exceed peers’ margins by 2030 through Minecraft investment and partnerships, including in China. The plan could support longer-term profitability but remains execution-dependent. Microsoft Xbox margin plan
• Negative Sentiment: Risks remain: Wiz reported a cloud vulnerability that could have exposed Microsoft customers, while U.K. regulators are investigating Microsoft 365 subscription marketing. Several securities-fraud law firms also publicized shareholder lawsuits. These developments are potential overhangs, although they did not offset the earnings-driven optimism.

Insider Activity

In other news, EVP Takeshi Numoto sold 4,500 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the sale, the executive vice president owned 47,468 shares of the company's stock, valued at approximately $19,122,009.12. This represents a 8.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the transaction, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 23,762 shares of company stock valued at $10,508,361. 0.03% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several equities research analysts have issued reports on MSFT shares. DZ Bank reaffirmed a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Wells Fargo & Company increased their price objective on Microsoft from $625.00 to $650.00 and gave the company an "overweight" rating in a research report on Thursday. Benchmark reissued a "buy" rating on shares of Microsoft in a report on Friday, July 24th. Guggenheim restated a "buy" rating and issued a $586.00 target price on shares of Microsoft in a research report on Monday. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday. Forty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $558.64.

Microsoft Stock Up 15.5%

Shares of NASDAQ:MSFT opened at $451.10 on Friday. The stock has a market capitalization of $3.35 trillion, a P/E ratio of 25.12, a price-to-earnings-growth ratio of 1.20 and a beta of 1.13. The stock's 50-day moving average price is $397.07 and its 200-day moving average price is $405.54. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 33.07% 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 quarter in the previous year, the company posted $3.65 EPS. On average, equities analysts anticipate that Microsoft Corporation will post 19.28 earnings per share for the current year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.8%. Microsoft's payout ratio is presently 20.27%.

Microsoft Profile

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).

Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.