Microsoft Corporation $MSFT Stock Bought by PSI Advisors LLC

Key Points

• PSI Advisors nearly doubled its Microsoft position in the second quarter, increasing holdings by 99.6% to 13,007 shares valued at approximately $4.85 million. Institutional investors collectively own 71.13% of Microsoft.
• Analysts remain broadly bullish, with 43 Buy ratings and a consensus price target of $569.29. Microsoft also exceeded quarterly earnings and revenue expectations, reporting $4.74 in EPS and $90.01 billion in revenue, up 17.7% year over year.
• Microsoft raised its quarterly dividend to $0.98 per share, representing an annualized dividend of $3.92 and a 0.8% yield. Investors are also monitoring heavy AI infrastructure spending, capacity constraints and recent insider selling, including CEO Satya Nadella’s sale of more than 86,000 shares.

PSI Advisors LLC increased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 99.6% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,007 shares of the software giant's stock after acquiring an additional 6,490 shares during the period. Microsoft makes up 1.1% of PSI Advisors LLC's investment portfolio, making the stock its 14th largest holding. PSI Advisors LLC's holdings in Microsoft were worth $4,852,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of MSFT. Cornerstone Capital Inc. increased its stake in shares of Microsoft by 2.1% during the second quarter. Cornerstone Capital Inc. now owns 119,527 shares of the software giant's stock valued at $44,586,000 after purchasing an additional 2,447 shares in the last quarter. Northstar Group Inc. boosted its position in shares of Microsoft by 0.3% in the 2nd quarter. Northstar Group Inc. now owns 12,157 shares of the software giant's stock worth $4,535,000 after purchasing an additional 37 shares in the last quarter. Osprey Private Wealth LLC boosted its position in shares of Microsoft by 14.3% in the 2nd quarter. Osprey Private Wealth LLC now owns 39,269 shares of the software giant's stock worth $14,648,000 after purchasing an additional 4,917 shares in the last quarter. Smith Group Asset Management LLC grew its stake in shares of Microsoft by 6.6% in the 2nd quarter. Smith Group Asset Management LLC now owns 186,902 shares of the software giant's stock worth $69,718,000 after buying an additional 11,633 shares during the last quarter. Finally, Wallace Advisory Group LLC grew its stake in shares of Microsoft by 0.8% in the 2nd quarter. Wallace Advisory Group LLC now owns 4,815 shares of the software giant's stock worth $1,796,000 after buying an additional 36 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Analyst Upgrades and Downgrades

MSFT has been the subject of a number of recent research reports. Piper Sandler lifted their price objective on Microsoft from $540.00 to $550.00 and gave the company an "overweight" rating in a research note on Tuesday, July 28th. Truist Financial reissued a "buy" rating and issued a $575.00 target price on shares of Microsoft in a research note on Wednesday, July 22nd. Scotiabank restated an "outperform" rating and set a $510.00 price target on shares of Microsoft in a report on Thursday, July 30th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Microsoft in a research report on Thursday, September 10th. Finally, Mizuho dropped their price target on shares of Microsoft from $515.00 to $490.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 15th. Forty-three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $569.29.

Microsoft Price Performance

MSFT opened at $516.17 on Monday. The company's 50-day simple moving average is $477.93 and its two-hundred day simple moving average is $426.29. 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 stock has a market capitalization of $3.83 trillion, a P/E ratio of 28.74, a P/E/G ratio of 1.66 and a beta of 1.11. 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 announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts' consensus estimates 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 period in the previous year, the business posted $3.65 earnings per share. The business's revenue for the quarter was up 17.7% on a year-over-year basis. As a group, analysts predict that Microsoft Corporation will post 19.62 EPS for the current year.

Microsoft Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.98 dividend. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. Microsoft's payout ratio is presently 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft unveiled a redesigned Copilot “super app” that combines access to Office applications with coding tools, autonomous AI agents and an Autopilot feature. The initiative is aimed primarily at business users and could improve enterprise adoption, usage and monetization of Microsoft’s AI offerings. Reuters article
• Positive Sentiment: Oppenheimer raised its Microsoft price target to $570, citing the company’s shift toward enterprise AI agents and a billing model tied more closely to customer usage. Other recent analyst targets have also moved higher, reinforcing expectations for sustained Azure and AI growth. Oppenheimer target article
• Positive Sentiment: Investors appear more confident that Microsoft can benefit from AI without depending on a single large-model provider. Its Azure cloud platform, Microsoft 365 ecosystem and enterprise distribution provide multiple avenues for converting AI investment into recurring revenue. MarketWatch article
• Positive Sentiment: Unusually heavy bullish options activity, including a large call spread, suggests traders are positioning for additional upside. Technical analysts identified a potential move toward approximately $555, although this is market positioning rather than a fundamental forecast. Barchart options article
• Neutral Sentiment: Broader market gains, led by AI stocks, provided an additional tailwind. However, elevated oil prices, Treasury yields and uncertainty over potential Federal Reserve policy changes remain important macroeconomic risks.
• Negative Sentiment: Microsoft is moving away from a consumer-focused personal-assistant strategy and concentrating Copilot on workplace use. The usage-based approach could unlock greater revenue, but it may also make sales less predictable than traditional subscriptions if customer adoption is slower than expected. Financial Post article
• Negative Sentiment: Investors continue to monitor Microsoft’s substantial AI infrastructure spending, data-center capacity constraints and a reported 277-job reduction in Washington. These factors could pressure near-term margins even as Azure demand remains strong.

Insider Activity at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, 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 position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 143,009 shares of company stock worth $71,420,699. Company insiders own 0.03% of the company's stock.

Microsoft Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

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