Microsoft Corporation $MSFT Shares Bought by First Eagle Investment Management LLC

Key Points

• First Eagle Investment Management increased its Microsoft position by 46.4% in the second quarter, adding 615,117 shares to hold 1.94 million shares valued at approximately $723.7 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue up 18.8% year over year to $92.28 billion and EPS of $4.89, while Azure revenue climbed 48%. Analysts remain broadly bullish, with an average “Moderate Buy” rating and a $609.54 price target.
• Investors are monitoring the costs and funding requirements of Microsoft’s AI expansion, including roughly $170 billion in planned AI-related capital spending and a $25 billion bond offering. Rising infrastructure costs and narrowing cloud margins could pressure future profitability despite strong demand.

First Eagle Investment Management LLC boosted its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 46.4% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,940,215 shares of the software giant's stock after buying an additional 615,117 shares during the period. First Eagle Investment Management LLC's holdings in Microsoft were worth $723,739,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Bank of America Corp DE purchased a new stake in Microsoft in the 2nd quarter worth approximately $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Microsoft by 0.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock valued at $24,013,297,000 after buying an additional 543,172 shares in the last quarter. Legal & General Group Plc acquired a new position in Microsoft during the second quarter worth $18,306,443,000. Amundi lifted its position in Microsoft by 30.8% during the first 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 during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after buying an additional 2,784,809 shares in the last quarter. Institutional investors own 71.13% of the company's stock.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on MSFT shares. Oppenheimer lifted their target price on Microsoft from $570.00 to $625.00 and gave the stock an "outperform" rating in a research report on Monday, October 26th. TD Cowen increased their target price on shares of Microsoft from $625.00 to $650.00 and gave the stock a "buy" rating in a report on Thursday. Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a research report on Thursday. Needham & Company LLC assumed coverage on Microsoft in a research note on Wednesday, September 23rd. They set a "buy" rating for the company. Finally, DA Davidson raised their price objective on Microsoft from $550.00 to $650.00 and gave the stock a "buy" rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, forty-five have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Microsoft presently has an average rating of "Moderate Buy" and an average price target of $609.54.

Insider Transactions at Microsoft

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the business's stock in a transaction 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 transaction, the executive vice president directly owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction 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 represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 150,314 shares of company stock worth $75,404,992 in the last 90 days. Company insiders own 0.03% of the company's stock.

Microsoft Stock Performance

Shares of MSFT opened at $521.91 on Monday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $551.15. The firm's fifty day simple moving average is $512.91 and its two-hundred day simple moving average is $438.43. The stock has a market capitalization of $3.88 trillion, a P/E ratio of 27.24, a price-to-earnings-growth ratio of 1.61 and a beta of 1.05. The company has a current ratio of 1.22, a quick ratio of 1.21 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 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 company had revenue of $92.28 billion during the quarter, compared to analysts' expectations of $90.62 billion. During the same quarter in the prior year, the business earned $4.13 earnings per share. Microsoft's revenue for the quarter was up 18.8% compared to the same quarter last year. As a group, analysts predict that Microsoft Corporation will post 19.79 EPS for the current year.

Microsoft Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is 19.00%.

Microsoft 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.

Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.