Microsoft Corporation $MSFT Shares Sold by OneDigital Investment Advisors LLC

Key Points

• OneDigital Investment Advisors trimmed its Microsoft position by 1%: The firm sold 2,469 shares and retained 236,371 shares valued at approximately $88.2 million. Institutional investors collectively own 71.13% of Microsoft.
• Analysts remain broadly bullish: Forty-one analysts rate Microsoft a Buy, with an average price target of $578.73; Cantor Fitzgerald and Piper Sandler recently raised their targets to $608 and $610, respectively.
• Microsoft reported strong growth but faces AI execution risks: Recent quarterly revenue rose 17.7% year over year and earnings exceeded estimates, while concerns remain about debt-funded AI spending and limited Copilot usage. The company also raised its quarterly dividend to $0.98 per share.

OneDigital Investment Advisors LLC trimmed its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.0% during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 236,371 shares of the software giant's stock after selling 2,469 shares during the period. Microsoft makes up about 0.7% of OneDigital Investment Advisors LLC's holdings, making the stock its 19th largest holding. OneDigital Investment Advisors LLC's holdings in Microsoft were worth $88,171,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also modified their holdings of the company. Auto Owners Insurance Co lifted its stake in Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock worth $29,073,486,000 after acquiring an additional 60,009,531 shares in the last quarter. Amundi increased its stake in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP increased its stake in Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the period. Hsbc Holdings PLC lifted its position in shares of Microsoft by 7.8% during the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock worth $10,715,379,000 after purchasing an additional 1,599,412 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in shares of Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock valued at $8,982,083,000 after purchasing an additional 9,493,778 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Cantor Fitzgerald upped their target price on shares of Microsoft from $522.00 to $608.00 and gave the stock an "overweight" rating in a research note on Monday, September 21st. Piper Sandler raised their price target on shares of Microsoft from $550.00 to $610.00 and gave the company an "overweight" rating in a research report on Wednesday, September 30th. TD Cowen restated a "buy" rating and issued a $540.00 price target on shares of Microsoft in a research note on Thursday, July 30th. CLSA reaffirmed an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Finally, Royal Bank Of Canada reiterated an "outperform" rating on shares of Microsoft in a research note on Thursday, September 10th. Forty-one equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $578.73.

Insider Activity at Microsoft

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 143,009 shares of company stock valued at $71,420,699 in the last ninety days. 0.03% of the stock is currently owned by insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

Microsoft Stock Performance

Shares of Microsoft stock opened at $529.76 on Thursday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The firm's 50 day moving average is $498.31 and its two-hundred day moving average is $433.03. The firm has a market capitalization of $3.93 trillion, a P/E ratio of 29.50, a P/E/G ratio of 1.70 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share 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 business 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 firm earned $3.65 EPS. The company's revenue was up 17.7% compared to the same quarter last year. Research analysts forecast that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend

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

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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