Microsoft Corporation $MSFT Position Increased by Willis Investment Counsel

Key Points

• Willis Investment Counsel increased its Microsoft position by 6.8% in the second quarter, owning 121,147 shares valued at approximately $45.2 million. Institutional investors collectively own 71.13% of Microsoft.
• Analysts remain broadly bullish: 43 analysts rate Microsoft a Buy, with an average target price of $569.29. Recent quarterly earnings also exceeded expectations, with revenue rising 17.7% year over year to $90.01 billion.
• Microsoft raised its quarterly dividend from $0.91 to $0.98 per share, while insiders have sold approximately $71.4 million of stock over the past 90 days.

Willis Investment Counsel lifted its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.8% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 121,147 shares of the software giant's stock after acquiring an additional 7,713 shares during the quarter. Microsoft accounts for approximately 2.2% of Willis Investment Counsel's portfolio, making the stock its 8th largest holding. Willis Investment Counsel's holdings in Microsoft were worth $45,190,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Auto Owners Insurance Co lifted its holdings in shares of Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock valued at $29,073,486,000 after buying an additional 60,009,531 shares during the period. Amundi grew its holdings 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 acquiring an additional 9,814,598 shares during the period. Fisher Asset Management LLC raised its position in Microsoft by 1.8% in the fourth quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant's stock worth $12,235,785,000 after acquiring an additional 458,014 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in 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 acquiring an additional 2,784,809 shares during the period. Finally, Hsbc Holdings PLC lifted its holdings in Microsoft by 7.8% in the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock valued at $10,715,379,000 after acquiring an additional 1,599,412 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on MSFT shares. Morgan Stanley reaffirmed an "overweight" rating on shares of Microsoft in a research note on Thursday, July 30th. Evercore set a $528.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Stifel Nicolaus upgraded shares of Microsoft from a "hold" rating to a "buy" rating and lifted their price target for the company from $530.00 to $575.00 in a research report on Tuesday, September 22nd. Royal Bank Of Canada reissued an "outperform" rating on shares of Microsoft in a research note on Thursday, September 10th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Microsoft in a research note on Monday, July 20th. Forty-three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $569.29.

Microsoft Price Performance

Shares of NASDAQ:MSFT opened at $508.96 on Wednesday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The business's fifty day moving average price is $482.29 and its two-hundred day moving average price is $427.75. The stock has a market cap of $3.78 trillion, a PE ratio of 28.34, a price-to-earnings-growth ratio of 1.64 and a beta of 1.11. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.

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 forecast that Microsoft Corporation will post 19.62 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is 20.27%.

Insider Activity

In related news, EVP Amy Hood sold 41,674 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by corporate insiders.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Copilot remains the primary catalyst. Jefferies reiterated its bullish view, citing Microsoft’s redesigned Copilot, new usage-based revenue opportunities and potential for paid Copilot seats to double over the next year. Enterprise AI adoption, however, is expected to build gradually. Jefferies Doubles Down on Microsoft's Copilot Opportunity
• Positive Sentiment: Analysts see further upside. JPMorgan maintained a Buy rating with a $625 target, while RBC reportedly set a $640 target, supported by Azure growth, Copilot adoption and Microsoft’s expanding AI infrastructure. The stock is also on track for its strongest quarterly performance in decades, reflecting a market “flight to quality.” Microsoft Stock Surges Past $500
• Positive Sentiment: Azure and enterprise demand support the long-term case. Recent commentary points to Azure growth above 40%, rapidly increasing Copilot seats and a commercial backlog approaching $700 billion. Microsoft is also bringing OpenAI’s autonomous “Dots” AI workers into its enterprise security ecosystem, potentially expanding cloud and software consumption. Microsoft Brings OpenAI's Autonomous Dots AI Workers Into the Enterprise
• Neutral Sentiment: AI policy developments remain mixed. President Trump reaffirmed support for data centers and announced voluntary AI controls with Microsoft and other technology companies, potentially easing regulatory concerns while leaving uncertainty over whether voluntary safeguards will be sufficient. At A.I. Event, Trump Asks Meta, OpenAI and Microsoft to Make Safety Decisions Themselves
• Negative Sentiment: Privacy and competitive risks are weighing on sentiment. Reports that humans may review some Copilot prompts have raised data-privacy concerns. OpenAI is also launching workplace features that increasingly resemble Microsoft Office, intensifying the risk that a key partner could compete directly with Microsoft’s software franchise. OpenAI Takes on Microsoft With a ChatGPT Office Suite
• Negative Sentiment: Investors are questioning the cost and valuation of the AI buildout. Microsoft is reducing staff while committing heavily to data centers, and some analysts argue that cash-flow benefits may take longer to materialize. After its rally, elevated expectations leave less room for execution setbacks.

Microsoft Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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