Microsoft Corporation $MSFT Stock: Altarock Partners LP Boosts Holdings

Key Points

• Altarock Partners increased its Microsoft stake by 25% in the second quarter, adding 466,945 shares to own 2.33 million shares worth about $870.8 million. Microsoft is now 20.5% of the fund’s portfolio and its third-largest holding.
• Microsoft reported quarterly EPS of $4.89, beating the $4.72 consensus, while revenue rose 18.8% year over year to $92.28 billion. Azure’s reported 48% growth and strong AI demand also buoyed sentiment.
• Microsoft raised its quarterly dividend from $0.91 to $0.98 per share. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $609.54.

Altarock Partners LP grew its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 25.0% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,334,482 shares of the software giant's stock after acquiring an additional 466,945 shares during the period. Microsoft accounts for approximately 20.5% of Altarock Partners LP's holdings, making the stock its 3rd largest position. Altarock Partners LP's holdings in Microsoft were worth $870,808,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Montgomery Financial Services LLC acquired a new stake in shares of Microsoft during the 2nd quarter worth about $26,000. Frankly Finances LLC bought a new stake in shares of Microsoft during the second quarter worth approximately $35,000. Bard Associates Inc. acquired a new position in shares of Microsoft in the second quarter valued at approximately $37,000. PMV Capital Advisers LLC acquired a new position in shares of Microsoft in the second quarter valued at approximately $38,000. Finally, Fiduciary Advisors Inc. increased its stake in shares of Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after purchasing an additional 34 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure’s reported 48% growth helped lift Microsoft amid an AI-related tech rebound. Commentary also points to AI demand exceeding available capacity and argues Microsoft can fund its expansion from strong cash flow—an advantage as investors scrutinize rivals’ borrowing and spending. Article: What's Going on with Microsoft Stock on Tuesday? Article: Why Microsoft Was Rewarded for Spending Less on AI
• Positive Sentiment: Microsoft’s AI tools may reach a broader base of PC users: the company says AI can run on a computer with 8GB of memory, potentially supporting adoption of Copilot and related services. Article: AI on an 8GB PC? Yes, Says Microsoft
• Neutral Sentiment: Xbox’s reveal of a new Elder Scrolls title drew attention to Microsoft’s gaming business, but the article provides no indication of near-term financial impact. Article: Microsoft Stock Rises After The Elder Scrolls VI: Sentinel Reveal
• Negative Sentiment: A Seeking Alpha contributor downgraded Microsoft, arguing that the easiest gains may be behind the stock—an assessment that could temper expectations after its recent strength. Article: Microsoft: The Easy Gains Are Already Over (Downgrade)
• Negative Sentiment: Microsoft’s reported $45.2 billion in quarterly capital spending, largely for AI, underscores the risk that infrastructure costs could weigh on cash flow before returns fully materialize. Reports of buyouts offered to roughly 60,000 employees may also prompt questions about workforce changes. Article: 5 questions to ask if your boss offers you a buyout

Wall Street Analyst Weigh In

MSFT has been the subject of several research reports. Barclays lifted their price target on Microsoft from $600.00 to $610.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Jefferies Financial Group upped their price objective on Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a report on Wednesday, October 14th. BMO Capital Markets set a $610.00 price objective on Microsoft in a research report on Thursday, October 29th. Scotiabank lifted their target price on Microsoft from $625.00 to $650.00 and gave the stock a "sector outperform" rating in a report on Thursday, October 29th. Finally, Griffin Securities cut shares of Microsoft from a "buy" rating to a "neutral" rating in a research report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus target price of $609.54.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $520.99 on Wednesday. The business has a fifty day moving average price of $514.06 and a two-hundred day moving average price of $438.92. The stock has a market capitalization of $3.87 trillion, a PE ratio of 27.19, a P/E/G ratio of 1.56 and a beta of 1.05. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.21. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $551.15.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. During the same period in the prior year, the firm posted $4.13 EPS. Microsoft's quarterly revenue was up 18.8% on a year-over-year basis. As a group, equities analysts predict that Microsoft Corporation will post 19.86 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. Microsoft's dividend payout ratio is currently 19.00%.

Insider Transactions at Microsoft

In other news, EVP Amy Hood sold 7,305 shares of the business's stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value of $3,984,293.10. Following the completion of the transaction, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. The trade was a 1.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 135,504 shares of company stock worth $68,138,024 over the last quarter. Corporate insiders own 0.03% of the company's stock.

Microsoft Company Profile

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.

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.