Microsoft Corporation $MSFT Stock Bought by N.E.W. Advisory Services LLC

Key Points

• Institutional ownership increased: N.E.W. Advisory Services LLC raised its Microsoft stake by 11.3% to 9,373 shares worth approximately $3.5 million. Hedge funds and other institutional investors own 71.13% of the company.
• Analysts remain bullish on AI and cloud growth: Microsoft has a “Moderate Buy” consensus rating, with 41 Buy ratings and an average price target of $578.73. Azure demand, Copilot adoption and enterprise AI tools are cited as key catalysts.
• Strong results but notable risks: Microsoft beat quarterly earnings and revenue estimates, while shares trade near record highs with a market capitalization of about $3.93 trillion. Investors are also monitoring high AI infrastructure spending, valuation concerns and recent insider stock sales.

N.E.W. Advisory Services LLC grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 11.3% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 9,373 shares of the software giant's stock after acquiring an additional 948 shares during the quarter. N.E.W. Advisory Services LLC's holdings in Microsoft were worth $3,496,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Frankly Finances LLC purchased a new position in Microsoft during the second quarter worth approximately $35,000. Fiduciary Advisors Inc. grew its stake in shares of Microsoft by 37.4% during the 2nd 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. MidAtlantic Capital Management Inc. acquired a new stake in shares of Microsoft during the 4th quarter worth $59,000. Glynn Capital Management LLC raised its position in shares of Microsoft by 34.2% in the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock worth $95,000 after buying an additional 65 shares during the period. Finally, Lifetime Wealth Management P.C. purchased a new position in shares of Microsoft in the 4th quarter worth $101,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analyst upgrade and higher price target: Melius Research upgraded Microsoft from “Hold” to “Buy” and set a $665 target, arguing that corporate concerns about AI safety, governance and security could increase demand for Microsoft’s enterprise tools. BNP Paribas also reportedly raised its forecast to $604, citing Azure growth, Copilot consumption-based pricing and the integration of OpenAI-related revenue. Melius Research upgrades Microsoft
• Positive Sentiment: AI and cloud momentum remain the core catalyst: Investors continue to focus on strong Azure demand, expanding AI infrastructure requirements and Copilot adoption. Microsoft is increasingly viewed as a relatively dependable enterprise AI leader, with its installed base, cloud platform and security products potentially giving it an advantage as businesses seek trusted AI solutions. Microsoft viewed as an AI leader
• Positive Sentiment: Upcoming Windows and Surface event: Microsoft’s October 7 event will highlight on-device AI and could provide updates on Windows, Surface and Copilot monetization. The event is being watched for evidence that AI can reinvigorate the devices business while complementing faster-growing cloud operations. Microsoft Windows and Surface event
• Neutral Sentiment: Internal AI model shift: Microsoft is reportedly steering employees away from Anthropic’s Claude toward internally developed AI models. This could reduce costs and dependence on outside providers, but investors will watch whether Microsoft maintains performance and enterprise customer confidence.
• Negative Sentiment: Risks include valuation, spending and rates: Microsoft’s strong recent rally has increased valuation concerns, while substantial capital expenditures needed for data centers could pressure free cash flow. Rising Treasury yields may also weigh on richly valued AI stocks. Rising Treasury yields and AI stocks
• Negative Sentiment: Isolated selling signals: A member of Congress disclosed a sale of Microsoft shares ahead of earnings season. The trade is a limited sentiment indicator rather than a fundamental development, but it may attract attention after reports that Microsoft insiders have sold shares without reported purchases in recent months. Congressman sells Microsoft stock

Insider Activity

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the business'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 transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. The trade was a 7.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 143,009 shares of company stock valued at $71,420,699 over the last ninety days. 0.03% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Citizens Jmp reissued a "market outperform" rating and set a $550.00 price target on shares of Microsoft in a research report on Tuesday, September 15th. Cantor Fitzgerald lifted their price objective on Microsoft from $522.00 to $608.00 and gave the company an "overweight" rating in a research note on Monday, September 21st. Oppenheimer boosted their target price on Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a report on Tuesday, September 22nd. Scotiabank increased their target price on shares of Microsoft from $510.00 to $615.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, BMO Capital Markets began coverage on shares of Microsoft in a report on Monday. They issued an "outperform" rating on the stock. Forty-one analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $578.73.

Microsoft Price Performance

MSFT stock opened at $529.30 on Wednesday. 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 1 year low of $349.20 and a 1 year high of $553.72. The firm has a market cap of $3.93 trillion, a P/E ratio of 29.47, a price-to-earnings-growth ratio of 1.69 and a beta of 1.10. The stock has a 50-day simple moving average of $495.52 and a 200-day simple moving average of $432.04.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company's revenue was up 17.7% on a year-over-year basis. During the same period last year, the business posted $3.65 EPS. On average, equities analysts predict that Microsoft Corporation will post 19.62 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently announced 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 an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's dividend payout ratio is presently 20.27%.

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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