Microsoft Corporation $MSFT Shares Purchased by Meridian Management Co.

Key Points

• Meridian Management Co. increased its Microsoft stake by 143.2% in the second quarter, bringing its holdings to 16,106 shares valued at approximately $6.0 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with earnings per share of $4.74 and revenue of $90.01 billion, exceeding analyst estimates; revenue rose 17.7% year over year. The company also raised its quarterly dividend to $0.98 from $0.91.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $570.62, although insiders—including CEO Satya Nadella—have sold shares worth approximately $71.4 million over the past 90 days.

Meridian Management Co. grew its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 143.2% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 16,106 shares of the software giant's stock after purchasing an additional 9,483 shares during the quarter. Microsoft comprises about 1.3% of Meridian Management Co.'s investment portfolio, making the stock its 16th largest position. Meridian Management Co.'s holdings in Microsoft were worth $6,008,000 at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in MSFT. Frankly Finances LLC bought a new stake in Microsoft during the 2nd quarter worth about $35,000. Fiduciary Advisors Inc. raised its stake in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after acquiring an additional 34 shares during the last quarter. MidAtlantic Capital Management Inc. acquired a new position in shares of Microsoft during the fourth quarter worth approximately $59,000. Lifetime Wealth Management P.C. acquired a new position in shares of Microsoft during the fourth quarter worth approximately $101,000. Finally, Ramsey Quantitative Systems bought a new stake in shares of Microsoft during the second quarter valued at approximately $112,000. Institutional investors own 71.13% of the company's stock.

Insider Activity

In related news, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction 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 completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is currently owned by company insiders.

Microsoft Price Performance

Shares of MSFT opened at $512.90 on Thursday. The stock has a market cap of $3.81 trillion, a P/E ratio of 28.56, a price-to-earnings-growth ratio of 1.64 and a beta of 1.11. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The stock's 50-day moving average price is $484.74 and its two-hundred day moving average price is $428.53. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly 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 company had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.Microsoft's revenue was up 17.7% on a year-over-year basis. During the same period in the prior year, the business posted $3.65 EPS. On average, equities analysts predict that Microsoft Corporation will post 19.62 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This is a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.8%. Microsoft's payout ratio is currently 20.27%.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Evercore set a $528.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Bank of America lifted their target price on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research note on Tuesday, September 1st. Phillip Securities downgraded Microsoft from a "strong-buy" rating to a "moderate buy" rating in a research report on Monday, August 3rd. Guggenheim reaffirmed a "buy" rating and set a $586.00 price target on shares of Microsoft in a research note on Monday, July 27th. Finally, BMO Capital Markets raised their price target on Microsoft from $500.00 to $515.00 and gave the company an "outperform" rating in a report on Thursday, July 30th. Forty-three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $570.62.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Piper Sandler raised its price target to $610 from $550 and maintained an Overweight rating, citing improving estimates for Microsoft’s commercial cloud business and potential revenue from the new E7 enterprise licensing tier. Why is Microsoft stock up on Wednesday?
• Positive Sentiment: Microsoft’s revamped Copilot is becoming more enterprise-focused, while usage-based billing expected to begin in November could simplify adoption and improve monetization. Analysts also see potential for paid Copilot seats to continue expanding rapidly. What a Revamped Copilot Means for Microsoft Stock
• Positive Sentiment: Microsoft is bringing OpenAI’s autonomous “Dots” agents into its enterprise security and governance framework, strengthening its position in workplace AI. A long-term Xbox publishing agreement with Take-Two also supports the gaming ecosystem. Microsoft Brings OpenAI’s Autonomous Dots AI Workers Into the Enterprise
• Neutral Sentiment: Microsoft has delivered a substantial quarterly rally, but its valuation remains below its recent average P/E despite strong Azure growth, expanding Copilot demand and a sizable commercial backlog. This leaves room for additional upside, although expectations are already elevated. How Much Upside Is Left In Microsoft Stock?
• Negative Sentiment: Investors remain concerned that surging AI infrastructure spending could outpace free cash flow before Azure and Copilot returns fully materialize. Microsoft also warns that AI agents may weaken traditional software pricing power and customer loyalty. The AI Revolution Could Be Microsoft’s Next Trillion-Dollar Opportunity

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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