Microsoft Corporation $MSFT Shares Acquired by Convergence Financial LLC

Key Points

• Convergence Financial LLC increased its Microsoft stake by 31.1% in the second quarter, bringing its holdings to 48,438 shares valued at approximately $18.1 million. Institutional investors collectively own 71.13% of Microsoft’s stock.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, beating analyst expectations. The company also raised its quarterly dividend to $0.98 per share.
• Analysts remain broadly bullish, with 43 Buy, four Hold and one Sell rating, and an average price target of $571.18. However, insiders sold roughly $71.4 million of stock over the past three months, while heavy AI spending and valuation remain key risks.

Convergence Financial LLC boosted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 31.1% during the second quarter, according to its most recent 13F filing with the SEC. The firm owned 48,438 shares of the software giant's stock after acquiring an additional 11,498 shares during the quarter. Microsoft accounts for about 1.4% of Convergence Financial LLC's portfolio, making the stock its 12th biggest holding. Convergence Financial LLC's holdings in Microsoft were worth $18,069,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Auto Owners Insurance Co lifted its stake in 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 in the last quarter. Amundi increased its stake in Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after buying an additional 9,814,598 shares in the last quarter. Fisher Asset Management LLC raised its holdings in shares of Microsoft by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant's stock valued at $12,235,785,000 after acquiring an additional 458,014 shares during the last quarter. Dimensional Fund Advisors LP lifted its position 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 acquiring an additional 2,784,809 shares in the last quarter. Finally, Hsbc Holdings PLC boosted its stake in shares of Microsoft by 7.8% in the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock worth $10,715,379,000 after acquiring an additional 1,599,412 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Insider Buying and Selling at Microsoft

In related news, EVP Amy Hood sold 41,674 shares of the business's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares of the company's stock, valued at $265,888,830.48. The trade was a 7.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is currently owned by insiders.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand
• Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth
• Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft
• Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models
• Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show
• Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential

Microsoft Stock Up 0.9%

NASDAQ:MSFT opened at $517.53 on Friday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The stock's fifty day moving average is $490.08 and its two-hundred day moving average is $429.97. The stock has a market capitalization of $3.84 trillion, a price-to-earnings ratio of 28.82, a price-to-earnings-growth ratio of 1.65 and a beta of 1.10. 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 (NASDAQ:MSFT - Get Free Report) last posted 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. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the business earned $3.65 EPS. The company's quarterly revenue was up 17.7% compared to the same quarter last year. Research analysts anticipate that Microsoft Corporation will post 19.62 EPS for the current year.

Microsoft Increases Dividend

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

Analyst Ratings Changes

MSFT has been the subject of several recent research reports. Benchmark reissued a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Evercore set a $528.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Piper Sandler boosted their price target on shares of Microsoft from $550.00 to $610.00 and gave the stock an "overweight" rating in a research report on Wednesday. KeyCorp reiterated an "overweight" rating on shares of Microsoft in a report on Thursday, September 3rd. Finally, Bank of America boosted their target price on Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a report on Tuesday, September 1st. Forty-three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and an average target price of $571.18.

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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