Microsoft Corporation $MSFT Stock Bought by Pallas Capital Advisors LLC

Key Points

• Pallas Capital Advisors increased its Microsoft stake by 1.6% in the second quarter, owning 160,335 shares valued at approximately $59.8 million. Institutional investors collectively hold 71.13% of Microsoft’s outstanding stock.
• Microsoft’s AI growth outlook remains central to the investment case, supported by Azure momentum, Copilot potential, new AI-focused hardware and strong recent results. Analysts maintain a “Moderate Buy” consensus, with a $578.73 average price target.
• Investors are also monitoring risks from debt-funded AI infrastructure spending, uncertain Copilot adoption and insider selling. Microsoft raised its quarterly dividend to $0.98 per share, while fiscal first-quarter results are scheduled for October 28.

Pallas Capital Advisors LLC boosted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.6% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 160,335 shares of the software giant's stock after acquiring an additional 2,511 shares during the period. Microsoft accounts for approximately 1.8% of Pallas Capital Advisors LLC's holdings, making the stock its 10th biggest holding. Pallas Capital Advisors LLC's holdings in Microsoft were worth $59,808,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in the stock. Auto Owners Insurance Co increased its position in shares of Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock valued at $29,073,486,000 after buying an additional 60,009,531 shares during the period. Corient Private Wealth LLC raised its stake in Microsoft by 234.5% in the fourth quarter. Corient Private Wealth LLC now owns 17,822,280 shares of the software giant's stock worth $8,619,211,000 after buying an additional 12,493,786 shares in the last quarter. Amundi lifted its holdings in Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after buying an additional 9,814,598 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in 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 buying an additional 9,493,778 shares during the period. Finally, Diamant Asset Management Inc. boosted its position in Microsoft by 38,442.1% during the 1st quarter. Diamant Asset Management Inc. now owns 6,810,388 shares of the software giant's stock valued at $2,521,001,000 after acquiring an additional 6,792,718 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Weiss Ratings raised Microsoft from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 27th. CLSA restated an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Needham & Company LLC assumed coverage on Microsoft in a research note on Wednesday, September 23rd. They issued a "buy" rating on the stock. Morgan Stanley downgraded Microsoft from an "overweight" rating to a "negative" rating in a report on Monday. Finally, Melius Research set a $665.00 price objective on Microsoft and gave the company a "buy" rating in a research report on Monday. Forty-one analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Microsoft has a consensus rating of "Moderate Buy" and a consensus price target of $578.73.

Insider Buying and Selling

In related news, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated 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 sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents 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 143,009 shares of company stock valued at $71,420,699 over the last ninety days. Insiders own 0.03% of the company's stock.

Microsoft Stock Performance

Shares of MSFT opened at $529.76 on Thursday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.93 trillion, a P/E ratio of 29.50, a P/E/G ratio of 1.70 and a beta of 1.10. The business's 50 day moving average price is $498.31 and its 200-day moving average price is $433.03. Microsoft Corporation has a 52 week low of $349.20 and a 52 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 analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the company earned $3.65 EPS. Equities research analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

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

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.

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