Microsoft Corporation $MSFT Position Lifted by Flputnam Investment Management Co.

Key Points

• Flputnam Investment Management increased its Microsoft stake by 5.8% in the second quarter, bringing its holdings to 628,158 shares valued at approximately $234.3 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with $4.74 in earnings per share and $90.01 billion in revenue, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains broadly positive, with 43 Buy ratings and an average price target of $592.15, although insiders have sold roughly $75.4 million of stock over the past 90 days and investors remain focused on AI spending, Azure growth and margins.

Flputnam Investment Management Co. raised its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 628,158 shares of the software giant's stock after acquiring an additional 34,498 shares during the period. Microsoft makes up 2.8% of Flputnam Investment Management Co.'s portfolio, making the stock its 6th biggest position. Flputnam Investment Management Co.'s holdings in Microsoft were worth $234,315,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in the company. Frankly Finances LLC purchased a new stake in shares of Microsoft during the 2nd quarter worth about $35,000. Bard Associates Inc. acquired a new stake in Microsoft during the 2nd quarter worth approximately $37,000. PMV Capital Advisers LLC purchased a new position in Microsoft in the second quarter valued at approximately $38,000. Fiduciary Advisors Inc. raised its holdings in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after buying an additional 34 shares during the period. Finally, Persistent Asset Partners Ltd acquired a new position in Microsoft during the second quarter valued at approximately $60,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Insider Activity

In related news, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction 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 directly owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 150,314 shares of company stock worth $75,404,992. Company insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MSFT. Bank of America boosted their price objective on shares of Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. Mizuho increased their price objective on shares of Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a research report on Thursday, October 15th. Phillip Securities downgraded shares of Microsoft from a "moderate buy" rating to a "hold" rating in a research note on Monday, October 12th. Melius Research set a $665.00 target price on shares of Microsoft and gave the company a "buy" rating in a report on Monday, October 5th. Finally, DA Davidson restated a "buy" rating and set a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Forty-three analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $592.15.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $524.51 on Friday. The company has a market cap of $3.90 trillion, a P/E ratio of 29.20, a PEG ratio of 1.68 and a beta of 1.10. 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 Corporation has a one year low of $349.20 and a one year high of $553.72. The business's 50-day simple moving average is $508.51 and its 200 day simple moving average is $446.17.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. Microsoft's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the previous year, the company posted $3.65 EPS. On average, sell-side analysts forecast that Microsoft Corporation will post 19.66 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. Microsoft's payout ratio is 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

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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