Microsoft Corporation $MSFT Shares Acquired by MRA Advisory Group

Key Points

• MRA Advisory Group increased its Microsoft stake by 17.9% in the third quarter, ending the period with 9,551 shares worth about $4.9 million. Other institutional investors also added shares; institutions collectively own 71.13% of Microsoft.
• Microsoft beat quarterly earnings and revenue estimates, reporting EPS of $4.89 and revenue of $92.28 billion; revenue rose 18.8% year over year. The company also raised its quarterly dividend from $0.91 to $0.98 per share.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $609.54. Meanwhile, reports of Microsoft scaling back some external AI-computing commitments have raised questions about AI demand, costs, and investment returns.

MRA Advisory Group boosted its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 17.9% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 9,551 shares of the software giant's stock after acquiring an additional 1,450 shares during the period. Microsoft accounts for 1.8% of MRA Advisory Group's investment portfolio, making the stock its 18th biggest position. MRA Advisory Group's holdings in Microsoft were worth $4,899,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the company. Wealth Group Ltd. boosted its stake in shares of Microsoft by 44.9% during the 3rd quarter. Wealth Group Ltd. now owns 3,613 shares of the software giant's stock valued at $1,853,000 after purchasing an additional 1,119 shares in the last quarter. Kwmg LLC raised its stake in Microsoft by 4.0% in the third quarter. Kwmg LLC now owns 22,385 shares of the software giant's stock worth $11,481,000 after buying an additional 854 shares in the last quarter. PFW Advisors LLC raised its stake in Microsoft by 3.1% in the third quarter. PFW Advisors LLC now owns 9,991 shares of the software giant's stock worth $5,124,000 after buying an additional 301 shares in the last quarter. Lake Hills Wealth Management LLC bought a new position in Microsoft in the third quarter worth about $279,000. Finally, American National Bank of Texas lifted its holdings in Microsoft by 2.4% in the third quarter. American National Bank of Texas now owns 4,666 shares of the software giant's stock worth $2,393,000 after buying an additional 109 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

MSFT stock opened at $530.61 on Monday. The company has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a P/E/G ratio of 1.56 and a beta of 1.05. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22. The business's 50-day moving average is $516.65 and its two-hundred day moving average is $440.18. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $559.15.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The business had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. During the same period in the previous year, the company posted $4.13 EPS. The business's quarterly revenue was up 18.8% compared to the same quarter last year. As a group, analysts forecast that Microsoft Corporation will post 19.92 earnings per share for the current year.

Microsoft Increases Dividend

The firm also recently disclosed 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. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change 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%. Microsoft's payout ratio is 20.46%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. The Goldman Sachs Group reaffirmed a "buy" rating and set a $640.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $600.00 target price on shares of Microsoft in a research report on Monday, October 12th. Jefferies Financial Group increased their target price on Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a research report on Wednesday, October 14th. Royal Bank Of Canada restated an "outperform" rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, October 29th. Finally, Scotiabank lifted their price target on Microsoft from $625.00 to $650.00 and gave the company a "sector outperform" rating in a research report on Thursday, October 29th. One research analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $609.54.

Insider Buying and Selling

In related news, EVP Amy Hood sold 41,674 shares of the business'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 completion of the sale, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 135,504 shares of company stock worth $68,138,024. 0.03% of the stock is currently owned by insiders.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s free-cash-flow position may offer some reassurance: an analysis notes that several other major AI hyperscalers are generating negative free cash flow, while Microsoft is generating positive cash flow. Is Microsoft Getting Enough Credit for Better Free Cash Flow Compared to its Peers?
• Neutral Sentiment: Reports say Microsoft plans to reduce the number of neocloud partners it uses, wind down rented AI capacity from Oracle, and declined a Texas data-center expansion with Nscale. This could help control costs and give Microsoft tighter oversight as it builds its own infrastructure, but the implications for capacity growth remain uncertain. Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain
• Negative Sentiment: Investors may read the canceled or reduced AI-computing commitments as a sign that Microsoft is reassessing demand, project timing, or returns on its data-center spending. The shift comes as reports highlight construction delays and the rising cost of meeting a growing AI backlog, intensifying scrutiny of whether heavy investment will pay off. Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
• Negative Sentiment: Broader unease around AI spending and tech-market volatility may also weigh on MSFT, as investors question the scale of data-center investment relative to future cash returns. Microsoft and Oracle's AI ambitions are suddenly a lot more expensive

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, and digital solutions for consumers, businesses, and public-sector organizations. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington.

Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.

Microsoft serves customers around the world through its products, online platforms, and network of business partners.

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