Microsoft Corporation $MSFT Stake Boosted by Redhawk Wealth Advisors Inc.

Key Points

• Redhawk Wealth Advisors increased its Microsoft stake by 10.5% in the second quarter to 27,381 shares worth approximately $10.2 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Analyst sentiment remains positive, with 42 Buy ratings and five Holds producing a consensus “Moderate Buy” rating and an average price target of $560.27.
• Microsoft exceeded quarterly expectations with $4.74 in EPS and $90.01 billion in revenue, up 17.7% year over year. However, investors remain focused on whether heavy AI infrastructure spending can translate into cash flow and sustainable margins.

Redhawk Wealth Advisors Inc. raised its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 10.5% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 27,381 shares of the software giant's stock after buying an additional 2,593 shares during the quarter. Microsoft accounts for 1.0% of Redhawk Wealth Advisors Inc.'s portfolio, making the stock its 28th largest position. Redhawk Wealth Advisors Inc.'s holdings in Microsoft were worth $10,214,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in MSFT. Sage Capital Advisors llc increased its position in shares of Microsoft by 1.0% in the second quarter. Sage Capital Advisors llc now owns 38,484 shares of the software giant's stock worth $14,355,000 after acquiring an additional 377 shares in the last quarter. Constitution Capital LLC lifted its position in shares of Microsoft by 0.9% in the 2nd quarter. Constitution Capital LLC now owns 70,308 shares of the software giant's stock valued at $26,226,000 after acquiring an additional 661 shares in the last quarter. Perkins Coie Trust Co boosted its stake in Microsoft by 0.4% in the 2nd quarter. Perkins Coie Trust Co now owns 66,346 shares of the software giant's stock worth $24,748,000 after purchasing an additional 256 shares during the period. AdviceOne Advisory Services LLC grew its position in Microsoft by 8.3% during the 2nd quarter. AdviceOne Advisory Services LLC now owns 2,355 shares of the software giant's stock worth $879,000 after purchasing an additional 181 shares in the last quarter. Finally, Kraft Davis & Associates LLC raised its stake in Microsoft by 6.7% during the 2nd quarter. Kraft Davis & Associates LLC now owns 5,202 shares of the software giant's stock valued at $1,995,000 after purchasing an additional 325 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages have recently commented on MSFT. BNP Paribas Exane decreased their target price on Microsoft from $556.00 to $555.00 and set an "outperform" rating for the company in a research report on Friday, May 1st. Weiss Ratings reissued a "hold (c)" rating on shares of Microsoft in a research note on Monday, July 6th. BMO Capital Markets raised their price objective on Microsoft from $500.00 to $515.00 and gave the stock an "outperform" rating in a research report on Thursday, July 30th. UBS Group set a $525.00 target price on Microsoft in a report on Thursday, July 30th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Microsoft in a research report on Monday, May 4th. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $560.27.

Microsoft Stock Performance

Shares of NASDAQ MSFT opened at $496.37 on Thursday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company has a market cap of $3.69 trillion, a P/E ratio of 27.64, a P/E/G ratio of 1.58 and a beta of 1.11. The business's 50 day moving average is $425.67 and its two-hundred day moving average is $411.00. 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 (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter last year, the company posted $3.65 earnings per share. Microsoft's quarterly revenue was up 17.7% on a year-over-year basis. On average, equities analysts expect that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

Insider Activity

In other news, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the transaction, the chief executive officer owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the 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 approximately $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 37,310 shares of company stock worth $17,256,219. Insiders own 0.03% of the company's stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft agreed to a long-term partnership with Saudi Arabia’s HUMAIN to bring its ALLAM Arabic-language AI models to Microsoft Foundry and Microsoft 365 Copilot. The deal expands Azure’s enterprise AI reach in the Middle East and adds regional-language capabilities to Microsoft’s ecosystem. Microsoft Expands Middle East AI Footprint Through Long-Term HUMAIN Deal
• Positive Sentiment: China’s Moonshot AI is reportedly discussing revenue-sharing arrangements with Microsoft, Amazon and Alphabet that could allow the cloud providers to host its Kimi K3 model. If completed, the arrangement could generate additional Azure consumption and provide access to a large pool of enterprise AI customers. China's Moonshot in talks with Microsoft, Amazon, Google over K3 revenue sharing
• Positive Sentiment: Microsoft’s roughly $678 billion commercial backlog and growing reliance on Azure for AI workloads—including demand from major customers such as Meta—continue to reinforce the long-term revenue outlook. Pershing Square’s decision to make Microsoft its largest AI holding also provides a favorable institutional signal. Microsoft Rises as $678 Billion Backlog Defies Tech Selloff
• Neutral Sentiment: Microsoft is developing its own Maia 300 AI chip, potentially reducing dependence on third-party GPUs and improving inference economics over time. However, custom silicon requires significant upfront investment, and the financial benefits remain unproven. OpenAI’s Jalapeño Chip Could Change the AI Hardware Race
• Negative Sentiment: Investors remain concerned that Microsoft’s AI capacity is converting into cash more slowly than expected. Fulfilling the backlog requires a historically large data-center buildout, while rising memory and server costs are increasing pressure on capital spending and near-term margins. Microsoft's AI Capacity Is Selling - But Cash Conversion Is Lagging
• Negative Sentiment: Critics say Microsoft provides insufficient disclosure on AI revenue, costs and capital allocation, making it difficult to assess returns on its AI investments. A slightly hotter-than-expected core PCE reading also creates a broader valuation headwind for richly valued technology shares. Microsoft Is Leaving Investors Flying Blind on Its AI Businesses

Microsoft Company Profile

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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