Microsoft Corporation $MSFT Shares Purchased by Citizens Financial Group Inc. RI

Key Points

• Citizens Financial Group increased its Microsoft position by 1.8% in the second quarter, owning 600,539 shares worth approximately $224 million. Institutional investors collectively own 71.13% of Microsoft’s stock.
• Microsoft exceeded quarterly expectations, reporting $4.74 in EPS and $90.01 billion in revenue, with revenue up 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, or $3.92 annually.
• Wall Street maintains a favorable outlook, with a consensus “Moderate Buy” rating and a $578.73 price target, though investors remain focused on Microsoft’s elevated valuation, heavy AI spending and related free-cash-flow pressures.

Citizens Financial Group Inc. RI grew its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.8% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 600,539 shares of the software giant's stock after purchasing an additional 10,905 shares during the period. Microsoft makes up approximately 2.7% of Citizens Financial Group Inc. RI's holdings, making the stock its 6th biggest position. Citizens Financial Group Inc. RI's holdings in Microsoft were worth $224,013,000 at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in MSFT. Friedenthal Financial raised its stake in Microsoft by 6.2% during the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant's stock valued at $160,000 after acquiring an additional 25 shares in the last quarter. Sequent Planning LLC grew its stake in shares of Microsoft by 0.7% in the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock worth $1,382,000 after purchasing an additional 25 shares in the last quarter. Lee Johnson Capital Management LLC increased its holdings in shares of Microsoft by 3.8% during the second quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock valued at $256,000 after purchasing an additional 25 shares during the period. Riverpoint Wealth Management Holdings LLC raised its stake in shares of Microsoft by 0.5% during the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock valued at $2,052,000 after purchasing an additional 26 shares in the last quarter. Finally, American Investment Services Inc. lifted its holdings in Microsoft by 3.1% in the first quarter. American Investment Services Inc. now owns 876 shares of the software giant's stock worth $324,000 after purchasing an additional 26 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft Trading Down 1.3%

Shares of NASDAQ:MSFT opened at $522.61 on Friday. The stock has a market capitalization of $3.88 trillion, a price-to-earnings ratio of 29.10, a PEG ratio of 1.70 and a beta of 1.10. 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 quick ratio of 1.22 and a current ratio of 1.23. The company has a 50 day moving average price of $499.74 and a 200 day moving average price of $434.03.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted 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. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the previous year, the business posted $3.65 earnings per share. The firm's quarterly revenue was up 17.7% compared to the same quarter last year. On average, research analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. 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 payout ratio is presently 20.27%.

Wall Street Analyst Weigh In

MSFT has been the topic of a number of recent analyst reports. Needham & Company LLC began coverage on shares of Microsoft in a research report on Wednesday, September 23rd. They set a "buy" rating on the stock. Jefferies Financial Group initiated coverage on shares of Microsoft in a report on Monday. They issued a "buy" rating for the company. Sanford C. Bernstein set a $660.00 price objective on shares of Microsoft in a research note on Monday, August 10th. Phillip Securities cut Microsoft from a "strong-buy" rating to a "moderate buy" rating in a report on Monday, August 3rd. Finally, Oppenheimer upped their target price on Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 22nd. Forty-one analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and a consensus target price of $578.73.

Insider Buying and Selling

In other news, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was 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 directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the 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 completion of the transaction, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. This trade represents a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 143,009 shares of company stock valued at $71,420,699 over the last ninety days. 0.03% of the stock is currently owned by company insiders.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership?
• Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating
• Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date
• Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program
• Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies

About Microsoft

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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