Microsoft Corporation $MSFT Stake Lifted by Keeler Thomas Management LLC

Key Points

• Keeler Thomas Management increased its Microsoft stake by 6.6% in the second quarter to 16,794 shares valued at approximately $6.27 million. Institutional investors collectively own 71.13% of Microsoft’s outstanding stock.
• Microsoft reported quarterly earnings and revenue above analyst expectations, while Azure growth and AI monetization remain key catalysts. However, substantial AI infrastructure spending could pressure margins and valuation.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $592.15, although insiders have sold roughly $75.4 million of shares over the past three months. Microsoft also raised its quarterly dividend to $0.98 per share.

Keeler Thomas Management LLC lifted its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.6% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 16,794 shares of the software giant's stock after purchasing an additional 1,042 shares during the quarter. Microsoft makes up 2.2% of Keeler Thomas Management LLC's investment portfolio, making the stock its 8th biggest holding. Keeler Thomas Management LLC's holdings in Microsoft were worth $6,265,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Bank of America Corp DE acquired a new position in shares of Microsoft in the second quarter valued at approximately $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Microsoft by 0.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after buying an additional 543,172 shares during the last quarter. Legal & General Group Plc acquired a new stake in shares of Microsoft in the 2nd quarter worth $18,306,443,000. Amundi lifted its stake in shares of Microsoft by 30.8% in the 1st quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares during the period. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Microsoft by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Insider Buying and Selling at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, 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 sale, 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. 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. In the last three months, insiders have sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is currently owned by insiders.

Analyst Ratings Changes

MSFT has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. reiterated a "buy" rating on shares of Microsoft in a research note on Monday, September 28th. Rothschild & Co Redburn set a $440.00 price target on shares of Microsoft in a report on Monday, September 21st. Jefferies Financial Group raised their price objective on shares of Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a research report on Wednesday, October 14th. Melius Research set a $665.00 price objective on Microsoft and gave the company a "buy" rating in a report on Monday, October 5th. Finally, KeyCorp reiterated an "overweight" rating on shares of Microsoft in a research report on Thursday, September 3rd. Forty-three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $592.15.

Microsoft Price Performance

MSFT opened at $524.51 on Monday. The business's fifty day moving average is $508.51 and its two-hundred day moving average is $446.69. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a market cap of $3.90 trillion, a price-to-earnings ratio of 29.20, a PEG ratio of 1.68 and a beta of 1.10. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The business 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%. The business's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $3.65 earnings per share. Analysts anticipate that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

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

About Microsoft

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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