Microsoft Corporation $MSFT Shares Acquired by Harbor Island Capital LLC

Key Points

• Harbor Island Capital increased its Microsoft stake by 6% in the second quarter, owning 40,824 shares valued at approximately $15.2 million. Institutional investors collectively hold 71.13% of Microsoft’s outstanding stock.
• Microsoft reported stronger-than-expected quarterly results, with earnings per share of $4.74 and revenue of $90.01 billion, up 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, implying a 0.7% yield.
• Wall Street remains broadly positive, with 43 analysts rating Microsoft a Buy and a consensus “Moderate Buy” rating alongside an average price target of $592.15. Investors are closely watching Azure growth, AI monetization and the substantial spending required to expand AI infrastructure.

Harbor Island Capital LLC lifted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 40,824 shares of the software giant's stock after buying an additional 2,300 shares during the period. Microsoft comprises 4.1% of Harbor Island Capital LLC's portfolio, making the stock its 9th biggest holding. Harbor Island Capital LLC's holdings in Microsoft were worth $15,228,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in MSFT. Bank of America Corp DE bought a new stake in shares of Microsoft in the 2nd quarter worth approximately $27,338,370,000. Legal & General Group Plc bought a new stake in shares of Microsoft during the second quarter valued at approximately $18,306,443,000. Jupiter Topco LLC acquired a new position in shares of Microsoft in the second quarter valued at $6,928,664,000. Canada Pension Plan Investment Board acquired a new position in shares of Microsoft in the second quarter valued at $5,653,812,000. Finally, The Manufacturers Life Insurance Company acquired a new position in shares of Microsoft in the second quarter valued at $4,000,706,000. Institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $524.51 on Monday. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The firm's 50-day simple moving average is $508.51 and its 200 day simple moving average is $446.69. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The company has a market cap of $3.90 trillion, a price-to-earnings ratio of 29.20, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10.

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

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. 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 of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is 20.27%.

Insider Activity at Microsoft

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 Microsoft stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 150,314 shares of company stock worth $75,404,992. Company insiders own 0.03% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Sanford C. Bernstein lifted their price target on shares of Microsoft from $660.00 to $662.00 and gave the stock an "outperform" rating in a research note on Monday, October 19th. Cantor Fitzgerald boosted their price target on shares of Microsoft from $522.00 to $608.00 and gave the company an "overweight" rating in a report on Monday, September 21st. Phillip Securities cut shares of Microsoft from a "moderate buy" rating to a "hold" rating in a research note on Monday, October 12th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Finally, Benchmark reiterated a "buy" rating on shares of Microsoft in a research report on Friday, July 24th. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Microsoft presently has a consensus rating of "Moderate Buy" and an average target price of $592.15.

Trending Headlines about Microsoft

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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