Microsoft Corporation $MSFT Shares Purchased by Gradient Investments LLC

Key Points

• Gradient Investments LLC raised its Microsoft stake by 4.9%, buying 13,996 shares to hold 299,159 shares valued at about $144.68 million, roughly 2.3% of its portfolio and its second‑largest holding.
• Market and analyst sentiment is mixed—some see upside, but concerns about heavy AI capex (~$30B per quarter), slowing Copilot adoption and targeted hiring freezes in cloud/sales have pressured the stock toward one of its worst quarters since 2008.
• Microsoft beat the quarter (EPS $4.14 vs. $3.86; revenue $81.27B, +16.7% Y/Y) and announced a quarterly dividend of $0.91 per share (annualized $3.64, ~1.0% yield).

Gradient Investments LLC lifted its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.9% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 299,159 shares of the software giant's stock after purchasing an additional 13,996 shares during the quarter. Microsoft accounts for approximately 2.3% of Gradient Investments LLC's investment portfolio, making the stock its 2nd biggest holding. Gradient Investments LLC's holdings in Microsoft were worth $144,679,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC grew its holdings in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after acquiring an additional 20 shares in the last quarter. Bayforest Capital Ltd bought a new stake in Microsoft during the third quarter worth about $38,000. LSV Asset Management bought a new stake in Microsoft during the fourth quarter worth about $44,000. Sellwood Investment Partners LLC acquired a new position in Microsoft during the third quarter valued at approximately $49,000. Finally, University of Illinois Foundation bought a new position in Microsoft in the second quarter valued at approximately $50,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Some Wall Street analysts still see large upside for MSFT, arguing the pullback may be overdone and presenting a buying opportunity for long‑term investors. Wall Street Says Microsoft Stock Has 89% Rebound Potential
• Positive Sentiment: Fundamental revenue drivers remain: LinkedIn ad growth and marketing solutions are cited as near‑term revenue positives that help offset AI spending concerns. Microsoft Benefits From LinkedIn Ad Growth: More Upside Ahead?
• Neutral Sentiment: Microsoft has implemented targeted hiring freezes in major cloud and North American sales groups while keeping AI and engineering hiring active — a cost‑management move that highlights prioritization of AI infrastructure but leaves uncertainty over near‑term sales execution. Microsoft freezes hiring in major cloud, sales groups, The Information reports
• Neutral Sentiment: Infrastructure expansion continues: third‑party partner Crusoe announced a 900 MW AI campus in Abilene, Texas to support large‑scale workloads for Microsoft — this reinforces demand for hyperscale capacity even as investors debate ROI timing. Crusoe Announces New 900 MW AI Factory Campus in Abilene, Texas to Support Microsoft AI Infrastructure
• Negative Sentiment: Market narrative has flipped: analysts and commentary say Microsoft is “losing the AI narrative,” and technical indicators show the stock at decade‑low oversold levels — fueling momentum selling. Microsoft’s stock hasn’t been this oversold in a decade, with the tech giant ‘really losing the AI narrative’
• Negative Sentiment: Heavy AI capex and execution concerns: multiple reports highlight Microsoft’s very large AI spending (reports cite ~$30B per quarter-level scale), slowing Copilot adoption vs. expectations, and the stock is on track for its worst quarter since 2008 — pressuring valuations and near‑term sentiment. Microsoft Is Down 24% This Year While Spending $30B a Quarter on AI
• Negative Sentiment: Competitive and strategic risks are rising: OpenAI and other AI firms (including reports of Anthropic eyeing an IPO) are evolving relationships and competition that could reduce Microsoft’s exclusive leverage in parts of the AI stack. Anthropic eyes IPO, Microsoft stock set for worst quarter since 2008

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Wells Fargo & Company lowered their price target on Microsoft from $630.00 to $615.00 and set an "overweight" rating on the stock in a research report on Thursday, January 29th. Wedbush decreased their target price on shares of Microsoft from $625.00 to $575.00 and set an "outperform" rating for the company in a research note on Thursday, January 29th. Morgan Stanley restated an "overweight" rating on shares of Microsoft in a report on Thursday, January 29th. Rothschild & Co Redburn set a $450.00 price target on shares of Microsoft in a research report on Wednesday, January 21st. Finally, Piper Sandler reiterated an "overweight" rating and issued a $600.00 price target (down from $650.00) on shares of Microsoft in a research note on Thursday, January 29th. Two analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Microsoft currently has a consensus rating of "Moderate Buy" and an average target price of $588.97.

Insiders Place Their Bets

In related news, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the sale, the executive vice president directly owned 137,933 shares in the company, valued at $56,486,322.16. This trade represents a 8.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John W. Stanton acquired 5,000 shares of Microsoft stock in a transaction dated Wednesday, February 18th. The stock was purchased at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the purchase, the director owned 83,905 shares in the company, valued at approximately $33,339,651.75. The trade was a 6.34% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.03% of the company's stock.

Microsoft Trading Down 2.5%

Shares of Microsoft stock opened at $356.77 on Friday. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. The business has a fifty day simple moving average of $409.36 and a two-hundred day simple moving average of $467.65. Microsoft Corporation has a 1 year low of $344.79 and a 1 year high of $555.45. The company has a market capitalization of $2.65 trillion, a price-to-earnings ratio of 22.31, a P/E/G ratio of 1.39 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share for the quarter, topping analysts' consensus estimates of $3.86 by $0.28. The company had revenue of $81.27 billion during the quarter, compared to the consensus estimate of $80.28 billion. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The company's revenue was up 16.7% on a year-over-year basis. During the same quarter last year, the firm earned $3.23 earnings per share. Research analysts forecast that Microsoft Corporation will post 13.08 EPS for the current year.

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be paid a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft's payout ratio is presently 22.76%.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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