Microsoft Corporation $MSFT Shares Bought by Baron Wealth Management LLC

Key Points

• Baron Wealth Management increased its Microsoft position by 19.7% in the second quarter, purchasing 1,725 additional shares for a total of 10,478 shares valued at approximately $3.9 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with EPS of $4.74 and revenue of $90.01 billion, exceeding analyst estimates; revenue rose 17.7% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $560.27.
• The company declared a quarterly dividend of $0.91 per share, equal to an annualized $3.64 dividend and a 0.8% yield. Meanwhile, executives sold shares recently, and investors continue to weigh Microsoft’s heavy AI spending, higher interest rates, and execution risks.

Baron Wealth Management LLC lifted its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 19.7% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 10,478 shares of the software giant's stock after purchasing an additional 1,725 shares during the period. Microsoft comprises 1.0% of Baron Wealth Management LLC's holdings, making the stock its 14th biggest holding. Baron Wealth Management LLC's holdings in Microsoft were worth $3,908,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the stock. Norges Bank bought a new stake in shares of Microsoft in the fourth quarter valued at about $50,664,631,000. Auto Owners Insurance Co grew its stake in Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock worth $29,073,486,000 after buying an additional 60,009,531 shares during the last quarter. Nuveen LLC bought a new position in Microsoft in the 1st quarter valued at $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Microsoft by 500.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant's stock valued at $30,840,432,000 after buying an additional 49,618,571 shares during the last quarter. Finally, Laurel Wealth Advisors LLC lifted its position in shares of Microsoft by 49,640.3% during the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant's stock worth $14,905,904,000 after purchasing an additional 29,906,791 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Trading Down 0.7%

Shares of NASDAQ MSFT opened at $481.15 on Friday. The stock has a market cap of $3.57 trillion, a P/E ratio of 26.79, a price-to-earnings-growth ratio of 1.56 and a beta of 1.11. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The firm has a 50 day moving average price of $417.76 and a two-hundred day moving average price of $408.78. 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 (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.65 EPS. As a group, equities analysts forecast that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft's payout ratio is currently 20.27%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MSFT. Guggenheim reissued a "buy" rating and issued a $586.00 price target on shares of Microsoft in a research note on Monday, July 27th. Truist Financial reaffirmed a "buy" rating and issued a $575.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. Mizuho reduced their price target on Microsoft from $515.00 to $490.00 and set an "outperform" rating for the company in a research report on Wednesday, July 15th. Morgan Stanley reaffirmed an "overweight" rating on shares of Microsoft in a research report on Thursday, July 30th. Finally, Phillip Securities lowered shares of Microsoft from a "strong-buy" rating to a "moderate buy" rating in a research report on Monday, August 3rd. Forty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Microsoft has a consensus rating of "Moderate Buy" and a consensus target price of $560.27.

Insider Activity at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction on 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 sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 37,310 shares of company stock valued at $17,256,219. Company insiders own 0.03% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure demand remains a major support. Microsoft’s reported $678 billion backlog of contracted cloud commitments provides visibility for future revenue and helps defend the company’s aggressive AI infrastructure spending. Microsoft Stock Rises as $678 Billion Backlog Supports AI Spending
• Positive Sentiment: Meta is becoming a significant Azure AI customer. Meta reportedly spends hundreds of millions of dollars annually on Azure and consumes large volumes of AI tokens, reinforcing demand for Microsoft’s cloud and AI services. Meta Platforms Emerges as a Major Microsoft Azure AI Client
• Positive Sentiment: Microsoft continues investing in AI capabilities. The company is increasing fiscal 2027 capital expenditures to expand infrastructure, while internally developed AI chips could improve efficiency and margins over time. Its latest quarterly results also showed strong earnings and 17.7% year-over-year revenue growth.
• Neutral Sentiment: Microsoft is hiring AI-capable legal talent and reportedly offering compensation of up to $279,000 for a legal engineer. The move highlights the company’s effort to integrate AI into commercial and compliance operations but is unlikely to materially affect near-term results. Microsoft Will Pay Up to $279K for a Lawyer Who Can Build AI
• Negative Sentiment: Higher yields are pressuring long-duration AI valuations. Rising interest rates reduce the present value of projected future AI profits, contributing to market questions despite Microsoft’s backlog and operating strength. Microsoft Slips as 4.68% Yield Tests Its $678 Billion Backlog
• Negative Sentiment: Technology stocks broadly declined Thursday afternoon, adding sector-driven pressure to MSFT. Investors are also monitoring concerns that large AI companies buying services from one another could create circular demand signals.
• Negative Sentiment: Microsoft faces geopolitical and execution risks. China is accelerating its move away from Windows, while continued AI capital spending raises questions about returns on investment. Recent insider activity also shows executive selling without reported purchases, a modest negative sentiment signal.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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