Microsoft Corporation $MSFT Holdings Lifted by Ancora Advisors LLC

Key Points

• Ancora Advisors increased its Microsoft stake by 2.6% during the second quarter to 245,587 shares valued at approximately $91.6 million. Institutional investors and hedge funds collectively own 71.13% of MSFT.
• Microsoft exceeded quarterly expectations, reporting $4.74 in earnings per share and $90.01 billion in revenue, up 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, implying a 0.7% annual yield.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and a $592.15 target price, but investors are monitoring heavy AI infrastructure spending, margin pressure and execution risks ahead of upcoming results.

Ancora Advisors LLC lifted its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.6% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 245,587 shares of the software giant's stock after acquiring an additional 6,320 shares during the period. Microsoft makes up about 1.8% of Ancora Advisors LLC's investment portfolio, making the stock its 8th largest holding. Ancora Advisors LLC's holdings in Microsoft were worth $91,609,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Delos Wealth Advisors LLC bought a new stake in Microsoft in the 2nd quarter valued at $5,721,000. Primecap Management Co. CA bought a new stake in shares of Microsoft in the second quarter valued at about $2,663,687,000. PDT Partners LLC acquired a new position in shares of Microsoft during the second quarter worth about $522,000. Palisade Capital Management LP acquired a new position in shares of Microsoft during the second quarter worth about $36,371,000. Finally, Cooper Haims Advisors LLC acquired a new position in shares of Microsoft during the second quarter worth about $2,383,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Price Performance

NASDAQ:MSFT opened at $524.51 on Friday. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a fifty day simple moving average of $508.51 and a 200 day simple moving average of $446.17. The stock has a market capitalization of $3.90 trillion, a PE ratio of 29.20, a P/E/G ratio of 1.68 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its 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 net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the previous year, the company earned $3.65 earnings per share. The firm's revenue for the quarter was up 17.7% on a year-over-year basis. On average, research analysts expect that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.98 dividend. 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 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's payout ratio is 20.27%.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Analysts Set New Price Targets

MSFT has been the topic of a number of recent research reports. KeyCorp reissued an "overweight" rating on shares of Microsoft in a research report on Thursday, September 3rd. Stifel Nicolaus upgraded Microsoft from a "hold" rating to a "buy" rating and boosted their target price for the company from $530.00 to $575.00 in a research note on Tuesday, September 22nd. BNP Paribas Exane downgraded Microsoft from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Benchmark reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Finally, Phillip Securities cut shares of Microsoft from a "moderate buy" rating to a "hold" rating in a research note on Monday, October 12th. Forty-three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $592.15.

Insider Activity

In other news, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 150,314 shares of company stock worth $75,404,992. Insiders own 0.03% of the company's stock.

Microsoft Company Profile

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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