Microsoft Corporation $MSFT is Hoffman Alan N Investment Management's 3rd Largest Position

Key Points

• Hoffman Alan N Investment Management cut its Microsoft stake by 6.4% in the second quarter, but Microsoft remains its third-largest holding at 10.2% of the portfolio and was valued at $17.2 million.
• Microsoft reported quarterly revenue of $90.01 billion and adjusted earnings of $4.74 per share, beating analyst estimates, while revenue increased 17.7% year over year. Analysts maintain a largely bullish view, with a consensus “Moderate Buy” rating and a $560.27 price target.
• Investors are weighing strong AI and Azure demand against rising costs: capital spending increased nearly 80% to approximately $115.9 billion and free cash flow declined. Company insiders sold $17.3 million of stock over the past 90 days, while Microsoft raised its quarterly dividend to $0.91 per share.

Hoffman Alan N Investment Management lowered its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.4% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 46,152 shares of the software giant's stock after selling 3,137 shares during the quarter. Microsoft accounts for 10.2% of Hoffman Alan N Investment Management's holdings, making the stock its 3rd biggest holding. Hoffman Alan N Investment Management's holdings in Microsoft were worth $17,216,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently bought and sold shares of MSFT. Longfellow Investment Management Co. LLC lifted its holdings in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new position in Microsoft during the 4th quarter valued at about $34,000. Timmons Wealth Management LLC bought a new position in Microsoft during the 4th quarter valued at about $36,000. Fairway Wealth LLC raised its position in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after purchasing an additional 66 shares during the period. Finally, University of Illinois Foundation purchased a new stake in Microsoft in the 2nd quarter worth about $50,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Insider Buying and Selling at Microsoft

In other Microsoft news, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction 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 sale, the chief executive officer directly owned 110,477 shares of the company's stock, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on 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 trade represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 37,310 shares of company stock worth $17,256,219 over the last 90 days. 0.03% of the stock is currently owned by company insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is reportedly preparing to launch its Maia 300 AI accelerator as soon as this fall and is discussing production with TSMC. Developing proprietary chips could reduce long-term reliance on Nvidia, improve supply-chain control, and support Microsoft’s expanding AI infrastructure. Microsoft’s Betting Big on Its Own AI Chips
• Positive Sentiment: Meta has reportedly become one of Microsoft’s largest Azure AI customers, spending hundreds of millions of dollars annually and consuming substantial computing capacity. The relationship reinforces evidence that enterprise demand is translating into Azure revenue. Meta Emerges as a Major Microsoft Azure AI Client
• Positive Sentiment: Microsoft raised its quarterly dividend to $0.91 per share, while Azure revenue reportedly surpassed $100 billion. Analysts and financial commentators also highlighted a roughly $678 billion backlog and continued strong demand for cloud and AI services. Microsoft Raises Dividend as AI Capital Spending Hits Record Levels
• Neutral Sentiment: Microsoft approved the Horizon 1 Texas data-center project involving IREN, potentially expanding capacity available for AI workloads. The development is strategically relevant, although the near-term financial benefit to Microsoft remains unclear. Microsoft Accepts Horizon 1
• Negative Sentiment: Annual capital spending has climbed nearly 80% to about $115.9 billion, while free cash flow declined. Investors remain focused on whether AI revenue growth will generate adequate returns on this spending. Microsoft Spent $115.9 Billion on AI
• Negative Sentiment: TCI Management reportedly exited its Microsoft position and increased its Alphabet stake, adding a notable institutional-selling signal. Separately, commentary warned that Microsoft’s valuation depends on optimistic earnings forecasts, while higher bond yields could reduce the present value of future AI profits. TCI Exits Microsoft

Wall Street Analyst Weigh In

Several research analysts have issued reports on MSFT shares. Guggenheim restated a "buy" rating and set a $586.00 target price on shares of Microsoft in a research report on Monday, July 27th. Wolfe Research reaffirmed an "outperform" rating and set a $550.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Citigroup reiterated a "buy" rating and issued a $600.00 price target (up from $570.00) on shares of Microsoft in a report on Tuesday, July 28th. Piper Sandler raised their price target on Microsoft from $540.00 to $550.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 28th. Finally, Morgan Stanley restated an "overweight" rating on shares of Microsoft in a report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $560.27.

Microsoft Price Performance

Microsoft stock opened at $483.24 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 stock has a market cap of $3.59 trillion, a price-to-earnings ratio of 26.91, a price-to-earnings-growth ratio of 1.56 and a beta of 1.11. The firm has a 50-day moving average of $419.61 and a two-hundred day moving average of $409.30. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS 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 analyst estimates of $87.62 billion. During the same period last year, the company posted $3.65 earnings per share. The company's quarterly revenue was up 17.7% compared to the same quarter last year. On average, research analysts forecast that Microsoft Corporation will post 19.59 earnings per share for the current year.

Microsoft Announces Dividend

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

Microsoft Company 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).

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