Microsoft Corporation $MSFT Stock Acquired by Focused Alpha LLC

Key Points

• Focused Alpha LLC increased its Microsoft stake by 8.8% in the second quarter to 34,522 shares worth approximately $12.9 million. Institutional investors collectively own 71.13% of the company.
• Microsoft reported strong quarterly results, with revenue up 17.7% year over year to $90.01 billion and EPS of $4.74, exceeding analyst expectations. The company also raised its quarterly dividend to $0.98 per share.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $578.73 price target, although insiders sold $71.4 million of shares over the past 90 days and investors remain concerned about valuation and heavy AI-related spending.

Focused Alpha LLC grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 8.8% during the second quarter, according to the company in its most recent disclosure with the SEC. The fund owned 34,522 shares of the software giant's stock after buying an additional 2,781 shares during the quarter. Microsoft accounts for about 3.3% of Focused Alpha LLC's investment portfolio, making the stock its 4th biggest position. Focused Alpha LLC's holdings in Microsoft were worth $12,877,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Auto Owners Insurance Co increased its stake in Microsoft by 56,160.8% in the fourth 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 during the period. Amundi boosted its stake in shares of Microsoft by 30.8% during 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 during the period. Dimensional Fund Advisors LP grew 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 worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock worth $8,982,083,000 after purchasing an additional 9,493,778 shares during the last quarter. Finally, Hsbc Holdings PLC increased its stake in Microsoft by 7.8% in the 4th 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 during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on 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 completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 143,009 shares of company stock valued at $71,420,699. Company insiders own 0.03% of the company's stock.

Microsoft Stock Down 1.3%

NASDAQ:MSFT opened at $522.61 on Friday. The company's 50-day simple moving average is $499.74 and its 200-day simple moving average is $434.03. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The stock has a market capitalization of $3.88 trillion, a P/E ratio of 29.10, a P/E/G ratio of 1.70 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 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 firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the previous year, the business posted $3.65 EPS. Microsoft's revenue was up 17.7% on a year-over-year basis. On average, equities analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. 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%. Microsoft's payout ratio is currently 20.27%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on MSFT. Cantor Fitzgerald boosted their price objective on shares of Microsoft from $522.00 to $608.00 and gave the company an "overweight" rating in a research report on Monday, September 21st. Bank of America raised their target price on shares of Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research report on Tuesday, September 1st. The Goldman Sachs Group reaffirmed a "buy" rating and set a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. BNP Paribas Exane lowered Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday. Finally, TD Cowen restated a "buy" rating and set a $540.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-one analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $578.73.

Key Stories Impacting Microsoft

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

About Microsoft

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.