Microsoft Corporation $MSFT Position Increased by Henrickson Nauta Wealth Advisors Inc.

Key Points

• Henrickson Nauta Wealth Advisors increased its Microsoft position by 37.3% in the second quarter, bringing its holdings to 5,349 shares valued at approximately $2.0 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with revenue of $92.28 billion and EPS of $4.89; Azure revenue rose 48%. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $609.54.
• Investors are weighing Microsoft’s AI growth against rising costs and capital needs, including roughly $170 billion in planned AI spending and a planned $25 billion bond offering. The company also raised its quarterly dividend to $0.98 per share.

Henrickson Nauta Wealth Advisors Inc. grew its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 37.3% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,349 shares of the software giant's stock after acquiring an additional 1,452 shares during the period. Microsoft comprises about 0.5% of Henrickson Nauta Wealth Advisors Inc.'s portfolio, making the stock its 22nd largest holding. Henrickson Nauta Wealth Advisors Inc.'s holdings in Microsoft were worth $1,995,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of MSFT. Bank of America Corp DE bought a new stake in Microsoft in the 2nd quarter valued at $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Microsoft by 0.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after purchasing an additional 543,172 shares during the period. Legal & General Group Plc bought a new position in Microsoft during the second quarter worth $18,306,443,000. Amundi boosted its position in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Microsoft by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. Institutional investors own 71.13% of the company's stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on MSFT shares. Wolfe Research raised shares of Microsoft from a "hold" rating to a "strong-buy" rating in a research report on Thursday. William Blair began coverage on shares of Microsoft in a report on Monday, October 5th. They set an "outperform" rating for the company. Griffin Securities lowered shares of Microsoft from a "buy" rating to a "neutral" rating in a research note on Thursday. BMO Capital Markets set a $610.00 price target on shares of Microsoft in a report on Thursday. Finally, Phillip Securities cut shares of Microsoft from a "moderate buy" rating to a "hold" rating in a report on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, forty-five have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $609.54.

Microsoft Stock Down 1.6%

Shares of MSFT opened at $521.91 on Friday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $551.15. The firm's 50 day moving average is $512.91 and its 200-day moving average is $438.43. The stock has a market capitalization of $3.88 trillion, a PE ratio of 27.24, a P/E/G ratio of 1.64 and a beta of 1.10. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.72 by $0.17. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. Microsoft's quarterly revenue was up 18.8% on a year-over-year basis. During the same period in the prior year, the firm posted $4.13 EPS. Equities research analysts forecast that Microsoft Corporation will post 19.79 EPS for the current year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is currently 19.00%.

Insider Activity

In other Microsoft news, EVP Amy Hood sold 7,305 shares of the stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the sale, the executive vice president directly owned 555,396 shares in the company, valued at $302,924,086.32. This represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by company insiders.

About Microsoft

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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