Microsoft Corporation $MSFT Shares Newly Bought by TPG Financial Advisors LLC

Key Points

• TPG Financial Advisors LLC acquired 2,468 Microsoft shares worth approximately $921,000 in the second quarter, while several other funds also initiated positions. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, exceeding analyst expectations. Analysts maintain a broadly bullish outlook, with a consensus rating of “Moderate Buy” and a $578.73 price target.
• Microsoft increased its quarterly dividend to $0.98 per share, representing a 0.7% annualized yield. However, insiders have sold 143,009 shares worth approximately $71.4 million over the past three months, and regulatory risks remain in its workforce and gaming businesses.

TPG Financial Advisors LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 2,468 shares of the software giant's stock, valued at approximately $921,000. Microsoft accounts for approximately 0.3% of TPG Financial Advisors LLC's holdings, making the stock its 22nd largest position.

A number of other hedge funds have also added to or reduced their stakes in the stock. Empirical Asset Management LLC bought a new position in Microsoft in the 2nd quarter worth about $4,423,000. Catalyst Investment Management LLC bought a new stake in shares of Microsoft during the second quarter valued at approximately $769,000. Palmer Knight Co bought a new stake in shares of Microsoft during the second quarter valued at approximately $7,648,000. Sound Financial Strategies Group LLC bought a new stake in shares of Microsoft during the second quarter valued at approximately $534,000. Finally, Chancellor Financial Group WB LP purchased a new stake in shares of Microsoft in the second quarter valued at approximately $11,482,000. 71.13% of the stock is currently owned by institutional investors.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Insider Activity

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on MSFT shares. Citigroup raised Microsoft from a "market outperform" rating to a "buy" rating in a research note on Monday, October 5th. Melius Research set a $665.00 price objective on Microsoft and gave the stock a "buy" rating in a report on Monday, October 5th. Jefferies Financial Group initiated coverage on Microsoft in a research report on Monday, October 5th. They set a "buy" rating for the company. BMO Capital Markets assumed coverage on Microsoft in a report on Monday, October 5th. They issued an "outperform" rating for the company. Finally, KeyCorp reissued an "overweight" rating on shares of Microsoft in a research report on Thursday, September 3rd. Forty-two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $578.73.

Microsoft Price Performance

MSFT opened at $535.07 on Friday. The business's 50-day moving average is $501.15 and its two-hundred day moving average is $434.73. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The firm has a market capitalization of $3.97 trillion, a PE ratio of 29.79, a price-to-earnings-growth ratio of 1.72 and a beta of 1.10.

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

Microsoft Increases Dividend

The company 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. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft's dividend payout ratio (DPR) is presently 20.27%.

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.

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