Microsoft Corporation $MSFT is RDST Capital LLC's 6th Largest Position

Key Points

• RDST Capital increased its Microsoft stake by 15.8% in the first quarter to 180,560 shares worth approximately $66.8 million, making MSFT the fund’s sixth-largest holding and 6.4% of its portfolio.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, beating analyst estimates, while revenue grew 17.7% year over year and net margin reached 40.31%.
• Analysts maintain a favorable outlook, with 42 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $560.27; Microsoft also announced a quarterly dividend of $0.91 per share.

RDST Capital LLC raised its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 15.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 180,560 shares of the software giant's stock after buying an additional 24,685 shares during the quarter. Microsoft comprises about 6.4% of RDST Capital LLC's investment portfolio, making the stock its 6th biggest holding. RDST Capital LLC's holdings in Microsoft were worth $66,838,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC increased its position 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 acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors bought a new stake in shares of Microsoft during the 4th quarter valued at $34,000. Timmons Wealth Management LLC purchased a new position in Microsoft in the 4th quarter worth approximately $36,000. Fairway Wealth LLC grew its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after acquiring an additional 66 shares in the last quarter. Finally, LSV Asset Management purchased a new position in Microsoft during the 4th quarter valued at approximately $44,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Price Performance

MSFT opened at $496.88 on Friday. The business has a fifty day moving average of $409.70 and a 200 day moving average of $407.88. The stock has a market cap of $3.69 trillion, a P/E ratio of 27.67, a PEG ratio of 1.59 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 52-week low of $349.20 and a 52-week 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business's revenue was up 17.7% on a year-over-year basis. During the same period in the previous year, the firm earned $3.65 earnings per share. As a group, sell-side analysts anticipate that Microsoft Corporation will post 19.58 EPS for the current year.

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft's dividend payout ratio is currently 20.27%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MSFT. Cantor Fitzgerald increased their target price on Microsoft from $502.00 to $522.00 and gave the company an "overweight" rating in a research report on Monday, July 27th. Citizens Jmp reaffirmed a "market outperform" rating and set a $550.00 price target on shares of Microsoft in a research note on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Microsoft in a research note on Monday, July 20th. Truist Financial restated a "buy" rating and issued a $575.00 target price on shares of Microsoft in a report on Wednesday, July 22nd. Finally, DZ Bank restated a "buy" rating on shares of Microsoft in a research report on Thursday, April 30th. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $560.27.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Pershing Square’s Bill Ackman reaffirmed his bullish Azure thesis, arguing that continued capacity investment and Microsoft 365’s embedded customer base can support high-teens earnings growth. Microsoft Stock Rises as Ackman Reaffirms Azure Bet
• Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing accelerating Copilot adoption and infrastructure growth. Wells Fargo also maintained an overweight rating and lifted its target to $700, reinforcing the view that the stock’s AI-driven recovery has further upside. JPMorgan Raises Microsoft Price Target
• Positive Sentiment: Microsoft began gradually combining its consumer and enterprise Copilot applications into a unified AI platform. The planned “super app” could improve user adoption, cross-selling and Microsoft’s competitive position against ChatGPT, Gemini and Claude. Microsoft Unifies Consumer and Enterprise Copilot
• Positive Sentiment: Microsoft accepted IREN’s first AI data-center deployment under a $9.7 billion cloud agreement. The milestone supports Azure’s ability to secure additional computing capacity as AI infrastructure demand remains strong. IREN Hands Microsoft Its First AI Cloud Deployment
• Neutral Sentiment: Microsoft is reportedly closing or restructuring numerous China offices and joint ventures, while retaining an Azure-linked presence. The move may reduce geopolitical exposure but could also limit access to the Chinese market. Microsoft Retreats in China
• Negative Sentiment: A report said Microsoft plans to cut carbon-removal purchases while AI-related emissions rise, creating potential reputational and environmental concerns. Microsoft Carbon Removal Purchases Report

Insider Transactions at Microsoft

In related news, CEO Judson Althoff sold 15,500 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 37,310 shares of company stock worth $17,256,219 over the last 90 days. Insiders own 0.03% of the company's stock.

About Microsoft

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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