Microsoft Corporation $MSFT Stock Bought by Plato Investment Management Ltd

Key Points

• Plato Investment Management increased its Microsoft stake by 2.8% in the second quarter, bringing its holdings to 175,526 shares valued at approximately $65.1 million. Institutional investors collectively own 71.13% of Microsoft’s outstanding stock.
• Analyst sentiment remains broadly positive, with 41 Buy ratings, five Holds and two Sells, resulting in a “Moderate Buy” consensus and an average price target of $578.73.
• Microsoft reported quarterly earnings and revenue above expectations, with revenue rising 17.7% year over year, and raised its quarterly dividend to $0.98 per share. However, investors continue to weigh substantial AI infrastructure spending and concerns about Copilot adoption.

Plato Investment Management Ltd increased its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 175,526 shares of the software giant's stock after purchasing an additional 4,799 shares during the quarter. Microsoft makes up approximately 3.7% of Plato Investment Management Ltd's holdings, making the stock its 3rd largest holding. Plato Investment Management Ltd's holdings in Microsoft were worth $65,093,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Auto Owners Insurance Co increased its stake 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. Amundi lifted its stake 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 acquiring an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Microsoft by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after acquiring an additional 2,784,809 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted 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 valued at $8,982,083,000 after acquiring an additional 9,493,778 shares in the last quarter. Finally, Hsbc Holdings PLC increased its position in Microsoft by 7.8% during the 4th quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock valued at $10,715,379,000 after purchasing an additional 1,599,412 shares during the period. Institutional investors own 71.13% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have commented on MSFT shares. Phillip Securities lowered shares of Microsoft from a "strong-buy" rating to a "moderate buy" rating in a report on Monday, August 3rd. Raymond James Financial downgraded Microsoft from a "moderate buy" rating to a "strong sell" rating in a report on Wednesday, September 23rd. Royal Bank Of Canada reissued an "outperform" rating on shares of Microsoft in a research report on Thursday, September 10th. Wells Fargo & Company raised their target price on Microsoft from $700.00 to $725.00 and gave the company an "overweight" rating in a research note on Thursday, October 1st. Finally, DA Davidson restated a "buy" rating and set a $550.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Forty-one research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $578.73.

Microsoft Price Performance

NASDAQ MSFT opened at $529.76 on Thursday. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The stock has a 50-day moving average of $498.31 and a 200 day moving average of $433.03. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a market capitalization of $3.93 trillion, a price-to-earnings ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (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 analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.65 EPS. On average, sell-side analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's payout ratio is currently 20.27%.

Insider Activity at Microsoft

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction on 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 sale, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on 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 directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 143,009 shares of company stock worth $71,420,699 in the last three months. 0.03% of the stock is currently owned by company insiders.

More 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

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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