Microsoft Corporation $MSFT is Temasek Holdings Private Ltd's 7th Largest Position

Key Points

• Temasek Holdings reduced its Microsoft stake by 1.4% in the first quarter but still held 2.67 million shares worth approximately $987.3 million, making Microsoft its seventh-largest position and 3.2% of its portfolio.
• Microsoft exceeded quarterly expectations with $4.74 in EPS and $90.01 billion in revenue, up 17.7% year over year. Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $558.87.
• AI-driven growth remains the central opportunity, but costs and concentration are risks: Azure growth and custom AI chips could improve cloud economics, while rising data-center spending, potentially lower margins, customer concentration and recent insider selling may pressure sentiment.

Temasek Holdings Private Ltd reduced its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 2,667,081 shares of the software giant's stock after selling 36,907 shares during the quarter. Microsoft accounts for 3.2% of Temasek Holdings Private Ltd's investment portfolio, making the stock its 7th biggest holding. Temasek Holdings Private Ltd's holdings in Microsoft were worth $987,273,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also modified their holdings of MSFT. Markel Group Inc. boosted its position in shares of Microsoft by 0.4% during the 1st quarter. Markel Group Inc. now owns 537,630 shares of the software giant's stock worth $199,014,000 after purchasing an additional 1,950 shares in the last quarter. Bessemer Group Inc. boosted its holdings in Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant's stock worth $2,562,197,000 after buying an additional 537,634 shares in the last quarter. Taylor Securities Services Inc. acquired a new position in Microsoft during the fourth quarter worth about $2,616,000. Werba Rubin Papier Wealth Management increased its holdings in Microsoft by 15.7% in the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant's stock valued at $6,041,000 after buying an additional 1,698 shares in the last quarter. Finally, World Investment Advisors lifted its position in shares of Microsoft by 22.1% during the 4th quarter. World Investment Advisors now owns 272,424 shares of the software giant's stock valued at $131,750,000 after acquiring an additional 49,371 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Insider Buying and Selling at Microsoft

In other news, EVP Amy Coleman sold 1,262 shares of the business's 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 completion of the transaction, the executive vice president owned 46,003 shares of the company's stock, valued at $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 38,572 shares of company stock worth $17,775,330. Corporate insiders own 0.03% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on MSFT. UBS Group set a $525.00 price target on Microsoft in a report on Thursday, July 30th. Rothschild & Co Redburn reduced their price objective on Microsoft from $450.00 to $400.00 and set a "neutral" rating for the company in a report on Thursday, April 23rd. DA Davidson reiterated a "buy" rating and set a $550.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Wolfe Research reissued an "outperform" rating and issued a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Finally, Argus dropped their price target on Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research report on Friday, July 10th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $558.87.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Citi raised its Microsoft price target to $600. The upgrade follows Microsoft’s quarterly Azure performance, with analysts highlighting the 43% cloud-revenue increase and stronger-than-expected earnings as evidence that AI demand is translating into accelerating cloud growth. Citi Raises Microsoft Stock Target to $600
• Positive Sentiment: Microsoft’s custom AI chips may improve cloud economics. CEO Satya Nadella said the company’s internally developed chips can deliver efficiency gains of up to 40%. Better cost and energy efficiency could help Microsoft support AI workloads while protecting Azure margins. Microsoft Custom AI Chips Improve Efficiency
• Positive Sentiment: Azure is expanding in India. Microsoft opened a major Hyderabad data-center region and is committing approximately $20.5 billion to its Indian cloud and AI operations. Early customers include Adani Group and HDFC Bank, supporting the case for long-term international Azure growth. Microsoft Opens Largest India Data Center Hub
• Positive Sentiment: Fundamentals and institutional support remain strong. Microsoft recently exceeded quarterly revenue and EPS expectations, while Bill Ackman’s Pershing Square holds a reported $2.4 billion MSFT position. Scotiabank also raised its fiscal 2027 EPS estimate and maintained an Outperform rating. Bill Ackman Microsoft Stake
• Neutral Sentiment: AI demand is powerful but concentrated. Reports suggest OpenAI may account for a substantial portion of Microsoft’s AI sales, creating both a major growth engine and customer-concentration risk. Microsoft’s large AI backlog also does not guarantee equivalent future profitability.
• Negative Sentiment: Spending, margins and valuation remain concerns. Rising data-center capital expenditures and lower cloud gross margins could pressure cash flow if AI infrastructure costs grow faster than revenue. After the sharp post-earnings rally, the stock is also more vulnerable to profit-taking or disappointing guidance.
• Negative Sentiment: Insider sales and securities litigation add headline risk. CEO Judson Althoff sold 10,000 shares for roughly $4.9 million, and multiple law firms are publicizing a securities class action with an August 11 lead-plaintiff deadline. These developments do not establish wrongdoing but may weigh on near-term sentiment.

Microsoft Stock Performance

Microsoft stock opened at $499.99 on Friday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a market capitalization of $3.71 trillion, a price-to-earnings ratio of 27.84, a PEG ratio of 1.61 and a beta of 1.11. The stock has a fifty day moving average of $404.86 and a two-hundred day moving average of $406.96. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business's revenue was up 17.7% on a year-over-year basis. During the same period in the prior year, the business earned $3.65 earnings per share. On average, analysts anticipate that Microsoft Corporation will post 19.57 EPS for the current fiscal year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued 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 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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