Microsoft Corporation $MSFT Stock: GAMMA Investing LLC Grows Position

Key Points

• GAMMA Investing LLC increased its Microsoft position by 15.6% in the third quarter, adding 31,086 shares to reach 230,099 shares valued at about $118 million.
• Institutional investors own 71.13% of Microsoft shares. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $609.54.
• Microsoft beat quarterly earnings and revenue expectations, with revenue up 18.8% year over year, and raised its quarterly dividend from $0.91 to $0.98 per share.

GAMMA Investing LLC grew its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 15.6% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 230,099 shares of the software giant's stock after purchasing an additional 31,086 shares during the period. Microsoft comprises about 3.9% of GAMMA Investing LLC's holdings, making the stock its 3rd largest holding. GAMMA Investing LLC's holdings in Microsoft were worth $118,018,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MSFT. State Street Corp grew its position in Microsoft by 2.9% during the second quarter. State Street Corp now owns 315,653,206 shares of the software giant's stock valued at $117,744,959,000 after acquiring an additional 8,944,917 shares during the last quarter. Bank of America Corp DE purchased a new position in shares of Microsoft during the second quarter worth approximately $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Microsoft by 0.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after acquiring an additional 543,172 shares during the last quarter. Legal & General Group Plc bought a new stake in shares of Microsoft in the 2nd quarter worth approximately $18,306,443,000. Finally, Amundi boosted its stake in shares of Microsoft by 12.0% in the 2nd quarter. Amundi now owns 46,694,778 shares of the software giant's stock valued at $17,418,076,000 after purchasing an additional 5,019,702 shares in the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and IBM introduced Imagine Enterprise, a platform combining IBM’s library of more than 6,000 AI agents with Microsoft’s cloud, data and security tools. The partnership could help drive enterprise demand for Microsoft’s AI and cloud services. IBM and Microsoft Announce a New AI Agent Platform Designed for Industry-Specific Transformation
• Positive Sentiment: A five-year partnership with Ohio State University will apply Microsoft’s cloud and AI technology to healthcare, research and education, adding another potential customer and use case. Ohio State and Microsoft announce five-year strategic partnership
• Neutral Sentiment: Microsoft reportedly urged the administration to drop a proposed ban on Chinese data-center technology, warning that restrictions could complicate data-center deployment. The outcome could affect equipment access and rollout timing. Microsoft presses Trump to scuttle expected ban on Chinese data-center technology
• Negative Sentiment: Anthropic unveiled workplace tools that could compete with Microsoft Office, including spreadsheet-related capabilities. The move raised concerns about competition in Microsoft’s enterprise software business. Anthropic unveils office suite to challenge Microsoft
• Negative Sentiment: A hot inflation report and rising bond yields weighed on the broader market, creating an additional headwind for technology shares. Stock market coverage on inflation and technology shares

Analyst Ratings Changes

MSFT has been the topic of a number of analyst reports. Guggenheim lifted their target price on shares of Microsoft from $586.00 to $595.00 and gave the stock a "buy" rating in a research report on Thursday, October 29th. Wolfe Research upgraded shares of Microsoft from a "hold" rating to a "strong-buy" rating in a research report on Thursday, October 29th. DA Davidson raised their price objective on Microsoft from $550.00 to $650.00 and gave the company a "buy" rating in a research note on Thursday, October 29th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Microsoft in a report on Tuesday. Finally, Benchmark reiterated a "buy" rating on shares of Microsoft in a report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $609.54.

Insider Transactions at Microsoft

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated 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 owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the business's stock in a transaction dated Monday, November 9th. The shares were sold at an average price of $544.37, for a total value of $3,976,622.85. Following the sale, the executive vice president owned 548,091 shares of the company's stock, valued at approximately $298,364,297.67. This represents a 1.32% 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 a total of 142,809 shares of company stock worth $72,114,646 in the last ninety days. Insiders own 0.03% of the company's stock.

Microsoft Price Performance

MSFT opened at $533.16 on Wednesday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $559.15. The stock has a market capitalization of $3.96 trillion, a PE ratio of 27.83, a price-to-earnings-growth ratio of 1.61 and a beta of 1.05. The stock's 50 day moving average price is $517.80 and its 200-day moving average price is $441.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating the consensus estimate of $4.72 by $0.17. The business had revenue of $92.28 billion for the quarter, compared to analysts' expectations of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The firm's revenue for the quarter was up 18.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $4.13 earnings per share. On average, equities research analysts predict that Microsoft Corporation will post 19.87 EPS for the current 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 given a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is 19.00%.

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. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.

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