Microsoft Corporation $MSFT Stake Lifted by Correct Capital Wealth Management

Key Points

• Correct Capital Wealth Management increased its Microsoft stake by 6.1% in the second quarter, bringing its holdings to 17,311 shares worth approximately $6.46 million. Institutional investors and hedge funds own 71.13% of Microsoft’s stock.
• Analysts remain broadly bullish, with 43 of 48 covering analysts rating Microsoft a Buy and an average price target of $570.62. Piper Sandler also raised its target to $610, citing stronger commercial cloud estimates and potential revenue from Microsoft’s E7 licensing tier.
• Microsoft reported quarterly revenue of $90.01 billion, up 17.7% year over year, and beat EPS estimates; it also raised its quarterly dividend to $0.98 per share. Investors remain focused on whether heavy AI infrastructure spending will generate sufficient Azure and Copilot returns.

Correct Capital Wealth Management grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.1% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 17,311 shares of the software giant's stock after purchasing an additional 1,000 shares during the quarter. Microsoft makes up about 1.1% of Correct Capital Wealth Management's portfolio, making the stock its 14th biggest holding. Correct Capital Wealth Management's holdings in Microsoft were worth $6,457,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of MSFT. Auto Owners Insurance Co lifted its stake in Microsoft by 56,160.8% in 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 purchasing an additional 60,009,531 shares in the last quarter. Amundi grew its position in shares of Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares in the last quarter. Fisher Asset Management LLC increased its holdings in shares of Microsoft by 1.8% in the fourth quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant's stock valued at $12,235,785,000 after purchasing an additional 458,014 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Microsoft by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. Finally, Hsbc Holdings PLC lifted its position in 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 buying an additional 1,599,412 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Microsoft

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 Price Performance

NASDAQ:MSFT opened at $512.90 on Thursday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The stock's fifty day moving average is $484.74 and its two-hundred day moving average is $428.53. The company has a market capitalization of $3.81 trillion, a P/E ratio of 28.56, a P/E/G ratio of 1.64 and a beta of 1.11. 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 issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company's quarterly revenue was up 17.7% on a year-over-year basis. During the same period last year, the company earned $3.65 EPS. Equities analysts expect that Microsoft Corporation will post 19.62 EPS for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is 20.27%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on MSFT shares. Citizens Jmp reissued a "market outperform" rating and set a $550.00 price objective on shares of Microsoft in a research note on Tuesday, September 15th. JPMorgan Chase & Co. reiterated a "buy" rating on shares of Microsoft in a report on Monday. Benchmark reissued a "buy" rating on shares of Microsoft in a research report on Friday, July 24th. Evercore set a $528.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Finally, UBS Group initiated coverage on shares of Microsoft in a report on Wednesday, September 23rd. They issued a "buy" rating for the company. Forty-three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $570.62.

Insider Activity at Microsoft

In other news, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 143,009 shares of company stock valued at $71,420,699 over the last 90 days. Insiders own 0.03% of the company's stock.

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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