Microsoft Corporation $MSFT Stock Acquired by Alyeska Investment Group L.P.

Key Points

• Alyeska Investment Group more than doubled its Microsoft stake in the second quarter, purchasing 716,806 additional shares for a total holding worth approximately $499.1 million. Institutional investors own 71.13% of Microsoft.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, beating analyst estimates, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, or $3.92 annually.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $592.15. Key investor concerns include heavy AI infrastructure spending, potential margin pressure and the need for Azure and AI investments to generate sufficient growth.

Alyeska Investment Group L.P. increased its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 115.4% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,338,020 shares of the software giant's stock after buying an additional 716,806 shares during the period. Microsoft accounts for approximately 1.3% of Alyeska Investment Group L.P.'s investment portfolio, making the stock its 6th biggest position. Alyeska Investment Group L.P.'s holdings in Microsoft were worth $499,108,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in MSFT. Frankly Finances LLC bought a new position in shares of Microsoft during the second quarter worth approximately $35,000. Bard Associates Inc. acquired a new position in shares of Microsoft during the 2nd quarter worth approximately $37,000. PMV Capital Advisers LLC acquired a new stake in shares of Microsoft in the second quarter valued at approximately $38,000. Fiduciary Advisors Inc. boosted 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 valued at $47,000 after buying an additional 34 shares during the period. Finally, Persistent Asset Partners Ltd bought a new stake in shares of Microsoft in the second quarter valued at approximately $60,000. 71.13% of the stock is owned by institutional investors.

Microsoft Stock Up 0.7%

Shares of MSFT opened at $524.51 on Friday. The firm has a 50 day simple moving average of $508.51 and a two-hundred day simple moving average of $446.17. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a market cap of $3.90 trillion, a P/E ratio of 29.20, a P/E/G ratio of 1.68 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the company posted $3.65 EPS. Research analysts forecast that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors 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 represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is currently 20.27%.

Insider Activity at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction on 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 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 150,314 shares of company stock valued at $75,404,992 in the last quarter. 0.03% of the stock is owned by company insiders.

Analyst Ratings Changes

MSFT has been the topic of a number of recent research reports. Truist Financial restated a "buy" rating and set a $575.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. DA Davidson reiterated a "buy" rating and set a $550.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Sanford C. Bernstein upped their target price on Microsoft from $660.00 to $662.00 and gave the company an "outperform" rating in a research report on Monday, October 19th. JPMorgan Chase & Co. reissued a "buy" rating on shares of Microsoft in a report on Monday, September 28th. Finally, Weiss Ratings upgraded Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. 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's stock. According to data from MarketBeat, Microsoft currently has a consensus rating of "Moderate Buy" and an average target price of $592.15.

Microsoft News Roundup

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

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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