Microsoft Corporation $MSFT is HORAN Wealth LLC's 4th Largest Position

Key Points

• HORAN Wealth LLC boosted its Microsoft stake 15.6% in Q3 to 42,501 shares worth $22.01M, making MSFT about 3.5% of its portfolio and its fourth-largest holding.
• Insider buying: Director John W. Stanton purchased 5,000 shares at an average $397.35 on Feb. 18, increasing his holding to 83,905 shares (about $33.34M); institutional investors own roughly 71.13% of the stock.
• Company and market view: Microsoft beat quarterly EPS and revenue estimates (EPS $4.14 vs. $3.86; revenue $81.27B) and stands to gain from a large AI capex cycle, but faces valuation concerns and some analyst downgrades amid an average price target of $591.95.

HORAN Wealth LLC grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 15.6% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 42,501 shares of the software giant's stock after buying an additional 5,743 shares during the quarter. Microsoft accounts for approximately 3.5% of HORAN Wealth LLC's portfolio, making the stock its 4th largest holding. HORAN Wealth LLC's holdings in Microsoft were worth $22,013,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. Longfellow Investment Management Co. LLC boosted its stake in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after purchasing an additional 20 shares during the period. Bayforest Capital Ltd bought a new stake in Microsoft during the 3rd quarter valued at $38,000. Sellwood Investment Partners LLC purchased a new stake in Microsoft during the 3rd quarter valued at $49,000. University of Illinois Foundation bought a new stake in Microsoft in the 2nd quarter worth $50,000. Finally, LSV Asset Management purchased a new position in shares of Microsoft in the fourth quarter valued at about $44,000. Institutional investors own 71.13% of the company's stock.

Insider Buying and Selling at Microsoft

In related news, Director John W. Stanton acquired 5,000 shares of the stock in a transaction on Wednesday, February 18th. The stock was acquired at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the purchase, the director owned 83,905 shares of the company's stock, valued at $33,339,651.75. This represents a 6.34% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.03% of the stock is owned by insiders.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Broadcom’s strong revenue outlook and commentary that AI semiconductor demand is accelerating reinforces the view that hyperscalers (including Microsoft) will keep investing heavily in data centers — a direct tailwind for Azure and MSFT’s cloud AI monetization. Broadcom sees revenue above estimates as AI fuels custom chip demand
• Positive Sentiment: Industry analysis pointing to a ~$650B AI capex cycle (chips, servers, networking) supports durable demand for Microsoft’s cloud, AI services, and enterprise partnerships — a structural revenue driver. The $650 Billion AI Surge Is Here—2 Semiconductor ETFs to Play It
• Positive Sentiment: Big Tech’s White House pledge to fund new power generation/infrastructure for AI data centers reduces regulatory/political risk and potential utility bill backlash for operators like Microsoft, easing a possible operational headwind. Tech Bosses Tell Trump They’ll Pay Up for Electricity
• Neutral Sentiment: Executive reshuffle at Microsoft Gaming (Asha Sharma named CEO) focuses integration and growth post‑Acquisition; strategic but longer‑dated for material revenue effects. Microsoft Gaming Leadership Reset Puts Integration And Growth In Focus
• Neutral Sentiment: CEO Satya Nadella’s public comments acknowledging AI‑driven job displacement underline Microsoft’s narrative that AI is transformative — useful for strategic positioning but neutral for immediate cash flow. Satya Nadella Says AI Will Displace Workers—'Best Protection...Transform Yourself'
• Negative Sentiment: Valuation and AI profitability concerns resurfaced after recent share‑price pullbacks; analysts and investors are reassessing whether current multiples properly reflect execution risk and long‑term AI margins. Assessing Microsoft (MSFT) Valuation After Recent Share Price Pullback And AI Profitability Questions
• Negative Sentiment: Broker downgrades (Melius Research, Stifel) to Hold and public commentator concern (Jim Cramer) add selling pressure and reinforce short‑term skepticism. Melius Research and Stifel Downgrade Microsoft Corporation (MSFT) to Hold
• Negative Sentiment: Reputational/operational risk after reports of widespread Outlook email blocking drew user ire — this can draw regulatory scrutiny or customer friction if persistent. Microsoft Draws Internet Ire Over Wave of Email Blocking
• Negative Sentiment: Reports that OpenAI is developing a GitHub alternative highlight competitive risk in developer tools — a potential threat to parts of Microsoft’s developer ecosystem over time. OpenAI is developing alternative to Microsoft's GitHub, The Information reports

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Bank of America dropped their target price on shares of Microsoft from $640.00 to $520.00 and set a "buy" rating for the company in a report on Monday, January 26th. Jefferies Financial Group reiterated a "buy" rating on shares of Microsoft in a report on Thursday, January 22nd. Wedbush decreased their target price on Microsoft from $625.00 to $575.00 and set an "outperform" rating for the company in a report on Thursday, January 29th. Sanford C. Bernstein reiterated an "outperform" rating and issued a $641.00 price target (down from $645.00) on shares of Microsoft in a report on Thursday, January 29th. Finally, Melius Research set a $430.00 price objective on shares of Microsoft in a report on Monday, February 9th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $591.95.

Microsoft Stock Performance

Shares of MSFT stock opened at $405.20 on Thursday. The company's fifty day moving average price is $438.52 and its 200-day moving average price is $481.02. The stock has a market cap of $3.01 trillion, a PE ratio of 25.34, a price-to-earnings-growth ratio of 1.58 and a beta of 1.10. The company has a current ratio of 1.39, a quick ratio of 1.38 and a debt-to-equity ratio of 0.09. Microsoft Corporation has a 12 month low of $344.79 and a 12 month high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The company had revenue of $81.27 billion during the quarter, compared to analyst estimates of $80.28 billion. During the same period last year, the business earned $3.23 EPS. Microsoft's quarterly revenue was up 16.7% compared to the same quarter last year. On average, equities analysts expect that Microsoft Corporation will post 13.08 EPS for the current fiscal year.

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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