Microsoft Corporation $MSFT Stock Acquired by Auxano Advisors LLC

Key Points

• Auxano Advisors increased its Microsoft stake by 13.1% in the second quarter to 131,823 shares valued at approximately $49.2 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly earnings of $4.74 per share and revenue of $90.01 billion, exceeding analyst estimates, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share.
• CEO Satya Nadella and EVP Takeshi Numoto sold shares under disclosed transactions, contributing to approximately $71.4 million in insider sales over the past quarter. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $578.73.

Auxano Advisors LLC grew its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 13.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 131,823 shares of the software giant's stock after buying an additional 15,275 shares during the quarter. Microsoft comprises 9.3% of Auxano Advisors LLC's investment portfolio, making the stock its 2nd biggest holding. Auxano Advisors LLC's holdings in Microsoft were worth $49,173,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of the business. Friedenthal Financial grew its stake in shares of Microsoft by 6.2% during the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant's stock worth $160,000 after purchasing an additional 25 shares during the period. Sequent Planning LLC grew its holdings in Microsoft by 0.7% in the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock valued at $1,382,000 after purchasing an additional 25 shares during the last quarter. Riverpoint Wealth Management Holdings LLC raised its position in shares of Microsoft by 0.5% during the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after purchasing an additional 26 shares during the last quarter. American Investment Services Inc. boosted its stake in shares of Microsoft by 3.1% during the first quarter. American Investment Services Inc. now owns 876 shares of the software giant's stock valued at $324,000 after acquiring an additional 26 shares during the last quarter. Finally, REAP Financial Group LLC lifted its stake in shares of Microsoft by 1.1% during the second quarter. REAP Financial Group LLC now owns 2,453 shares of the software giant's stock valued at $915,000 after buying an additional 26 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.

Microsoft Stock Down 1.3%

NASDAQ MSFT opened at $522.61 on Friday. The stock has a market cap of $3.88 trillion, a PE ratio of 29.10, a P/E/G ratio of 1.70 and a beta of 1.10. The business has a 50 day moving average price of $499.74 and a two-hundred day moving average price of $434.03. 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 fifty-two week low of $349.20 and a fifty-two week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the company posted $3.65 EPS. As a group, sell-side analysts predict 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 $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's payout ratio is presently 20.27%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership?
• Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating
• Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date
• Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program
• Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies

Analysts Set New Price Targets

A number of brokerages have recently commented on MSFT. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Microsoft in a research report on Monday, September 28th. Needham & Company LLC initiated coverage on shares of Microsoft in a research report on Wednesday, September 23rd. They issued a "buy" rating on the stock. Guggenheim restated a "buy" rating and issued a $586.00 target price on shares of Microsoft in a report on Monday, July 27th. BMO Capital Markets began coverage on shares of Microsoft in a research report on Monday. They set an "outperform" rating for the company. Finally, Citizens Jmp reaffirmed a "market outperform" rating and set a $550.00 price target on shares of Microsoft in a research note on Tuesday, September 15th. Forty-one 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 stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $578.73.

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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