Microsoft Corporation $MSFT Holdings Boosted by Principle Wealth Partners LLC

Key Points

• Principle Wealth Partners increased its Microsoft stake by 1.8% in the second quarter, bringing its holdings to 116,758 shares valued at approximately $43.6 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, exceeding analyst expectations. The company also raised its quarterly dividend to $0.98 per share, equivalent to a 0.7% yield.
• Insiders have been selling shares: executives sold 143,009 shares worth about $71.4 million over the past 90 days. Despite the sales, analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $578.73.

Principle Wealth Partners LLC increased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.8% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 116,758 shares of the software giant's stock after buying an additional 2,104 shares during the quarter. Microsoft accounts for 2.2% of Principle Wealth Partners LLC's portfolio, making the stock its 10th largest position. Principle Wealth Partners LLC's holdings in Microsoft were worth $43,553,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of MSFT. Auto Owners Insurance Co boosted its stake in shares of Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock valued at $29,073,486,000 after purchasing an additional 60,009,531 shares in the last quarter. Amundi raised its position in Microsoft by 30.8% in the 1st quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP raised its position in Microsoft by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the period. Hsbc Holdings PLC lifted its stake in Microsoft by 7.8% in the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock worth $10,715,379,000 after purchasing an additional 1,599,412 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in Microsoft by 64.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock valued at $8,982,083,000 after buying an additional 9,493,778 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Insiders Place Their Bets

In related news, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Amy Hood sold 41,674 shares of Microsoft stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their position. 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 have sold 143,009 shares of company stock worth $71,420,699 in the last ninety days. Insiders own 0.03% of the company's stock.

Microsoft Stock Up 0.1%

NASDAQ MSFT opened at $529.76 on Thursday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The stock has a market capitalization of $3.93 trillion, a PE ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10. 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 business's 50-day moving average is $498.31 and its 200 day moving average is $433.03.

Microsoft (NASDAQ:MSFT - Get Free Report) last released 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 business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the company posted $3.65 EPS. Microsoft's quarterly revenue was up 17.7% compared to the same quarter last year. Sell-side analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current 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 paid a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's payout ratio is presently 20.27%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

Analyst Ratings Changes

A number of brokerages have recently issued reports on MSFT. Citizens Jmp reaffirmed a "market outperform" rating and set a $550.00 price objective on shares of Microsoft in a research note on Tuesday, September 15th. Royal Bank Of Canada restated an "outperform" rating on shares of Microsoft in a report on Thursday, September 10th. Evercore upgraded Microsoft from an "underperform" rating to an "outperform" rating in a research report on Monday. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Microsoft in a research note on Monday, September 28th. Finally, CLSA reiterated an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Forty-one analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and a consensus price target of $578.73.

Microsoft 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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