Microsoft Corporation $MSFT Shares Newly Purchased by Tacita Capital Inc

Key Points

• Tacita Capital initiated a Microsoft position by purchasing 3,821 shares valued at approximately $1.43 million, making Microsoft its 28th-largest holding. Institutional investors and hedge funds collectively own 71.13% of the stock.
• Microsoft reported a strong quarter, with EPS of $4.74 and revenue of $90.01 billion, exceeding analyst expectations while revenue rose 17.7% year over year. Shares recently traded near $535, approaching the company’s roughly $4 trillion market capitalization.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and $578.73 target price, while Microsoft raised its quarterly dividend to $0.98. Potential risks include insider selling, uncertainty surrounding its green-card sponsorship program and an antitrust investigation into its gaming businesses.

Tacita Capital Inc bought a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 3,821 shares of the software giant's stock, valued at approximately $1,425,000. Microsoft accounts for approximately 0.8% of Tacita Capital Inc's investment portfolio, making the stock its 28th largest holding.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Frankly Finances LLC purchased a new position in shares of Microsoft during the 2nd quarter worth approximately $35,000. Fiduciary Advisors Inc. raised its stake in shares of Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after buying an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new position in Microsoft during the second quarter worth about $60,000. Glynn Capital Management LLC lifted its stake in Microsoft by 34.2% in the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock valued at $95,000 after buying an additional 65 shares in the last quarter. Finally, Lifetime Wealth Management P.C. purchased a new stake in shares of Microsoft in the fourth quarter valued at $101,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Performance

Shares of MSFT opened at $535.07 on Monday. The business's fifty day moving average price is $501.15 and its 200 day moving average price is $435.10. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The stock 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. 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 (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the company posted $3.65 earnings per share. The firm's revenue was up 17.7% on a year-over-year basis. Equities research analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is 20.27%.

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

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on MSFT. Piper Sandler upped their price objective on shares of Microsoft from $550.00 to $610.00 and gave the company an "overweight" rating in a research note on Wednesday, September 30th. Citizens Jmp reiterated a "market outperform" rating and set a $550.00 target price on shares of Microsoft in a report on Tuesday, September 15th. Scotiabank upped their price target on shares of Microsoft from $510.00 to $615.00 and gave the stock an "outperform" rating in a research report on Monday, October 5th. Mizuho lowered their price objective on shares of Microsoft from $515.00 to $490.00 and set an "outperform" rating for the company in a research report on Wednesday, July 15th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $578.73.

Insider Buying and Selling at Microsoft

In related news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction dated Wednesday, August 5th. The stock was 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 approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 143,009 shares of company stock valued at $71,420,699. Corporate insiders own 0.03% of the company's stock.

Microsoft 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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