Microsoft Corporation $MSFT Shares Newly Acquired by Firetrail Investments PTY Ltd.

Key Points

• Firetrail Investments acquired 19,160 Microsoft shares worth approximately $7.1 million in the second quarter, making Microsoft about 2% of its portfolio. Institutional investors collectively own 71.13% of the stock.
• Microsoft insiders sold 143,009 shares worth approximately $71.4 million over the past three months, including sizable sales by CEO Satya Nadella and EVP Amy Hood under pre-arranged Rule 10b5-1 plans.
• Microsoft reported stronger-than-expected quarterly results, with revenue rising 17.7% year over year and EPS exceeding estimates, while raising its quarterly dividend to $0.98 per share. Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and an average price target of $578.73.

Firetrail Investments PTY Ltd. purchased a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 19,160 shares of the software giant's stock, valued at approximately $7,104,000. Microsoft makes up approximately 2.0% of Firetrail Investments PTY Ltd.'s investment portfolio, making the stock its 23rd largest holding.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Friedenthal Financial increased 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 buying an additional 25 shares in the last quarter. Sequent Planning LLC boosted 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. Riverpoint Wealth Management Holdings LLC grew its position in Microsoft by 0.5% during the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after acquiring an additional 26 shares during the last quarter. American Investment Services Inc. grew its position in Microsoft by 3.1% during the 1st quarter. American Investment Services Inc. now owns 876 shares of the software giant's stock worth $324,000 after acquiring an additional 26 shares during the last quarter. Finally, REAP Financial Group LLC increased its holdings in Microsoft by 1.1% in the 2nd quarter. REAP Financial Group LLC now owns 2,453 shares of the software giant's stock worth $915,000 after purchasing an additional 26 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

Insider Activity

In other news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The stock was 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 directly owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the business's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares in the company, valued at $265,888,830.48. This represents a 7.24% 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. Insiders have sold 143,009 shares of company stock worth $71,420,699 in the last three months. Corporate insiders own 0.03% of the company's stock.

Microsoft Stock Performance

Shares of MSFT stock opened at $529.76 on Thursday. The stock has a market capitalization of $3.93 trillion, a PE ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10. The business's 50 day simple moving average is $498.31 and its 200 day simple moving average is $433.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company's revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business earned $3.65 EPS. As a group, research analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

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

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

Wall Street Analyst Weigh In

A number of brokerages have recently commented on MSFT. Oppenheimer lifted their price target on Microsoft from $515.00 to $570.00 and gave the company an "outperform" rating in a research note on Tuesday, September 22nd. Benchmark reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. BNP Paribas Exane lowered shares of Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday. Rothschild & Co Redburn set a $440.00 target price on shares of Microsoft in a research report on Monday, September 21st. Finally, Piper Sandler boosted their target price on shares of Microsoft from $550.00 to $610.00 and gave the stock an "overweight" rating in a report on Wednesday, September 30th. Forty-one research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Microsoft has a consensus rating of "Moderate Buy" and an average target price of $578.73.

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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.