Microsoft Corporation $MSFT Shares Acquired by Thornburg Investment Management Inc.

Key Points

• Thornburg Investment Management increased its Microsoft stake by 139.6% in the second quarter, acquiring 38,419 additional shares for a total holding of 65,940 shares valued at approximately $24.6 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Analyst sentiment remains favorable, with 43 Buy, four Hold and two Sell ratings producing a consensus “Moderate Buy” rating and an average price target of $592.15. Microsoft’s latest quarterly results also exceeded expectations, with $4.74 EPS and $90.01 billion in revenue.
• Microsoft raised its quarterly dividend to $0.98 per share, up from $0.91, while investors continue to monitor Azure growth, AI monetization and infrastructure spending as potential catalysts and risks.

Thornburg Investment Management Inc. increased its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 139.6% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 65,940 shares of the software giant's stock after acquiring an additional 38,419 shares during the quarter. Thornburg Investment Management Inc.'s holdings in Microsoft were worth $24,597,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the company. Strategic Wealth Advisors LLC raised its position in Microsoft by 1.7% during the second quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant's stock valued at $549,000 after buying an additional 24 shares during the period. Friedenthal Financial boosted its holdings in shares of Microsoft by 6.2% during the first quarter. Friedenthal Financial now owns 431 shares of the software giant's stock worth $160,000 after purchasing an additional 25 shares during the period. Sequent Planning LLC grew its holdings in shares of Microsoft by 0.7% during the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock valued at $1,382,000 after acquiring an additional 25 shares in the last quarter. Lee Johnson Capital Management LLC raised its holdings in shares of Microsoft by 3.8% during the second quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock worth $256,000 after acquiring an additional 25 shares in the last quarter. Finally, Riverpoint Wealth Management Holdings LLC increased its position in Microsoft by 0.5% in the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after purchasing an additional 26 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on MSFT shares. KeyCorp reiterated an "overweight" rating on shares of Microsoft in a research note on Thursday, September 3rd. Piper Sandler restated an "overweight" rating on shares of Microsoft in a report on Tuesday. Wells Fargo & Company lifted their price target on shares of Microsoft from $700.00 to $725.00 and gave the company an "overweight" rating in a research report on Thursday, October 1st. Phillip Securities downgraded shares of Microsoft from a "moderate buy" rating to a "hold" rating in a report on Monday, October 12th. Finally, Scotiabank raised their price target on Microsoft from $510.00 to $615.00 and gave the company an "outperform" rating in a research report on Monday, October 5th. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and a consensus target price of $592.15.

More 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

Microsoft Price Performance

Shares of Microsoft stock opened at $524.51 on Friday. The stock has a market capitalization of $3.90 trillion, a price-to-earnings ratio of 29.20, a P/E/G ratio of 1.67 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The firm's 50-day moving average price is $508.51 and its two-hundred day moving average price is $446.17.

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. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the company posted $3.65 EPS. The business's revenue for the quarter was up 17.7% compared to the same quarter last year. On average, equities analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

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

Insider Buying and Selling

In other news, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction dated 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 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the business'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 value of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 150,314 shares of company stock valued at $75,404,992. Insiders own 0.03% of the company's stock.

Microsoft Company Profile

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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