Microsoft Corporation $MSFT is Opinicus Capital Inc.'s 3rd Largest Position

Key Points

• Opinicus Capital increased its Microsoft stake by 11.1% in the first quarter to 17,161 shares worth approximately $6.35 million, making Microsoft its third-largest holding. Institutional investors and hedge funds collectively own 71.13% of MSFT.
• Microsoft delivered a strong quarterly performance, reporting adjusted EPS of $4.74 versus a $4.24 consensus and revenue of $90.01 billion, up 17.7% year over year. Azure growth exceeded expectations at 43%, while paid Microsoft 365 Copilot seats surpassed 30 million.
• Wall Street maintains a positive view, with 42 analysts rating the stock a Buy and five a Hold; the average price target is $558.64. Microsoft also declared a quarterly dividend of $0.91 per share, representing an annualized yield of about 0.8%.

Opinicus Capital Inc. lifted its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 11.1% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 17,161 shares of the software giant's stock after purchasing an additional 1,713 shares during the quarter. Microsoft comprises about 4.5% of Opinicus Capital Inc.'s portfolio, making the stock its 3rd biggest position. Opinicus Capital Inc.'s holdings in Microsoft were worth $6,352,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Meridian Management Co. increased its position in Microsoft by 1,135.6% during the 1st quarter. Meridian Management Co. now owns 6,623 shares of the software giant's stock valued at $2,452,000 after buying an additional 6,087 shares in the last quarter. Sanctuary Advisors LLC boosted its holdings in Microsoft by 0.3% in the first quarter. Sanctuary Advisors LLC now owns 980,298 shares of the software giant's stock worth $362,877,000 after acquiring an additional 3,211 shares in the last quarter. BlueChip Wealth Advisors LLC grew its stake in shares of Microsoft by 4.7% during the first quarter. BlueChip Wealth Advisors LLC now owns 4,684 shares of the software giant's stock worth $1,714,000 after acquiring an additional 212 shares during the last quarter. Sterling Investment Advisors Ltd. increased its holdings in shares of Microsoft by 10.6% during the first quarter. Sterling Investment Advisors Ltd. now owns 28,891 shares of the software giant's stock valued at $10,695,000 after acquiring an additional 2,774 shares in the last quarter. Finally, Ellerson Group Inc. ADV increased its holdings in shares of Microsoft by 36.1% during the first quarter. Ellerson Group Inc. ADV now owns 927 shares of the software giant's stock valued at $343,000 after acquiring an additional 246 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Stock Performance

MSFT opened at $451.10 on Friday. 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. The firm has a 50 day moving average of $397.07 and a two-hundred day moving average of $405.54. The firm has a market capitalization of $3.35 trillion, a PE ratio of 25.12, a P/E/G ratio of 1.20 and a beta of 1.13.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data 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 33.07%. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the business earned $3.65 earnings per share. The business's quarterly revenue was up 17.7% compared to the same quarter last year. On average, analysts anticipate that Microsoft Corporation will post 19.28 EPS for the current year.

Microsoft Dividend Announcement

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 paid a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft's dividend payout ratio (DPR) is presently 20.27%.

Wall Street Analyst Weigh In

MSFT has been the subject of a number of recent analyst reports. HSBC lowered their target price on shares of Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Arete Research raised their price target on shares of Microsoft from $730.00 to $870.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Piper Sandler lifted their price objective on shares of Microsoft from $540.00 to $550.00 and gave the stock an "overweight" rating in a research note on Tuesday. China Renaissance dropped their price objective on shares of Microsoft from $630.00 to $550.00 and set a "buy" rating on the stock in a report on Monday, May 4th. Finally, DA Davidson reissued a "buy" rating and issued a $550.00 target price on shares of Microsoft in a research report on Thursday. 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 company currently has an average rating of "Moderate Buy" and an average price target of $558.64.

Key Headlines Impacting Microsoft

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 related news, EVP Takeshi Numoto sold 4,500 shares of the firm's stock in a transaction dated 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 sale, the executive vice president directly owned 47,468 shares of the company's stock, valued at $19,122,009.12. This trade represents a 8.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares of the company's stock, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 in the last quarter. 0.03% of the stock is currently owned by company insiders.

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).

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