Microsoft Corporation $MSFT Shares Bought by Mid American Wealth Advisory Group Inc.

Key Points

• Mid American Wealth Advisory Group increased its Microsoft stake by 133.4% in the second quarter, bringing its holdings to 2,192 shares valued at approximately $818,000. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly revenue of $92.28 billion and EPS of $4.89, exceeding analyst expectations, with revenue up 18.8% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $609.54.
• Microsoft raised its quarterly dividend to $0.98 per share, but investors remain focused on the company’s substantial AI spending, planned $25 billion bond offering and potential pressure on cloud margins and future cash-flow returns.

Mid American Wealth Advisory Group Inc. grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 133.4% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,192 shares of the software giant's stock after purchasing an additional 1,253 shares during the period. Mid American Wealth Advisory Group Inc.'s holdings in Microsoft were worth $818,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the stock. Bank of America Corp DE acquired a new position in shares of Microsoft in the second quarter worth about $27,338,370,000. Legal & General Group Plc purchased a new position in shares of Microsoft in the second quarter worth approximately $18,306,443,000. Jupiter Topco LLC acquired a new stake in shares of Microsoft during the second quarter valued at approximately $6,928,664,000. Canada Pension Plan Investment Board acquired a new stake in shares of Microsoft during the second quarter valued at approximately $5,653,812,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in shares of Microsoft in the 2nd quarter valued at approximately $4,000,706,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently commented on MSFT shares. Weiss Ratings raised shares of Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. BMO Capital Markets set a $610.00 target price on shares of Microsoft in a research note on Thursday. Citizens Jmp increased their target price on Microsoft from $550.00 to $625.00 and gave the company a "market outperform" rating in a report on Thursday. Stifel Nicolaus increased their target price on Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a report on Thursday. Finally, Argus decreased their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $609.54.

Microsoft Stock Performance

Shares of MSFT opened at $521.91 on Friday. The company has a market capitalization of $3.88 trillion, a PE ratio of 27.24, a PEG ratio of 1.64 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.22. The company's 50 day moving average price is $512.91 and its 200 day moving average price is $438.43. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $551.15.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The company had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. During the same quarter in the prior year, the firm earned $4.13 EPS. The company's revenue was up 18.8% compared to the same quarter last year. Research analysts expect that Microsoft Corporation will post 19.79 EPS for the current fiscal year.

Microsoft Increases Dividend

The business also recently declared 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 of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is currently 19.00%.

Insider Transactions at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction dated 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction dated 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 in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 in the last three months. 0.03% of the stock is currently owned by insiders.

Key Headlines Impacting Microsoft

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.

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.

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