Microsoft Corporation $MSFT Shares Newly Bought by Bank of America Corp DE

Key Points

• Bank of America established a major new Microsoft position: It purchased 73.3 million shares valued at approximately $27.3 billion, representing about 0.99% of Microsoft and 1.8% of its own investment portfolio.
• Microsoft reported strong quarterly results: Earnings per share reached $4.74 versus the $4.24 consensus estimate, while revenue totaled $90.01 billion and grew 17.7% year over year.
• The company increased its dividend: Microsoft raised its quarterly payout to $0.98 per share, or $3.92 annually, implying a 0.7% yield and a 20.27% payout ratio.

Bank of America Corp DE purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 73,289,286 shares of the software giant's stock, valued at approximately $27,338,370,000. Microsoft makes up 1.8% of Bank of America Corp DE's investment portfolio, making the stock its 8th biggest position. Bank of America Corp DE owned approximately 0.99% of Microsoft at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Auto Owners Insurance Co increased its holdings in Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock worth $29,073,486,000 after acquiring an additional 60,009,531 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 raised 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 acquiring an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP raised its position in 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 acquiring an additional 2,784,809 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Microsoft by 64.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock valued at $8,982,083,000 after purchasing an additional 9,493,778 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Trading Down 0.3%

Shares of MSFT opened at $531.87 on Wednesday. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The stock has a market cap of $3.95 trillion, a PE ratio of 29.61, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10. The firm's fifty day moving average is $506.64 and its two-hundred day moving average is $443.46. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

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

Microsoft Increases Dividend

The firm also recently disclosed 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. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is currently 20.27%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article
• Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook
• Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article
• Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article
• Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal
• Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article
• Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on MSFT shares. Morgan Stanley lowered shares of Microsoft from an "overweight" rating to a "negative" rating in a research report on Monday, October 5th. Wells Fargo & Company upped their price target on shares of Microsoft from $700.00 to $725.00 and gave the stock an "overweight" rating in a research report on Thursday, October 1st. UBS Group raised their price target on shares of Microsoft from $525.00 to $675.00 and gave the company a "buy" rating in a research note on Thursday, October 15th. Argus decreased their price target on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Finally, Oppenheimer lifted their price objective on Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a report on Tuesday, September 22nd. Forty-three analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $592.15.

Insider Buying and Selling at Microsoft

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the firm'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 transaction, the chief executive officer directly owned 486,763 shares of the company's stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the firm's stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the completion of the transaction, the executive vice president directly owned 555,396 shares in the company, valued at $302,924,086.32. This trade represents a 1.30% 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 sold a total of 150,314 shares of company stock worth $75,404,992 in the last 90 days. 0.03% of the stock is currently owned by insiders.

About Microsoft

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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