Microsoft Corporation $MSFT Stock: Hedeker Wealth LLC Increases Stake

Key Points

• Hedeker Wealth increased its Microsoft stake by 6.9% in the second quarter, adding 3,546 shares to hold 55,236 shares valued at about $20.6 million. Microsoft is the firm’s second-largest holding.
• Microsoft reported quarterly earnings of $4.89 per share and revenue of $92.28 billion, beating estimates; revenue rose 18.8% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $609.54. Investor concerns include substantial AI-related capital spending, while Azure growth and AI demand are cited as potential tailwinds.

Hedeker Wealth LLC grew its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.9% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 55,236 shares of the software giant's stock after acquiring an additional 3,546 shares during the quarter. Microsoft accounts for about 3.9% of Hedeker Wealth LLC's holdings, making the stock its 2nd largest position. Hedeker Wealth LLC's holdings in Microsoft were worth $20,604,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD bought a new stake in shares of Microsoft during the second quarter valued at approximately $14,959,000. IFP Advisors Inc lifted its position in Microsoft by 3.2% in the second quarter. IFP Advisors Inc now owns 180,462 shares of the software giant's stock worth $67,316,000 after purchasing an additional 5,662 shares during the period. Roble Belko & Company Inc lifted its position in Microsoft by 17.8% in the second quarter. Roble Belko & Company Inc now owns 5,826 shares of the software giant's stock worth $2,173,000 after purchasing an additional 880 shares during the period. Baird Financial Group Inc. boosted its stake in Microsoft by 0.9% during the second quarter. Baird Financial Group Inc. now owns 5,836,049 shares of the software giant's stock worth $2,176,963,000 after buying an additional 53,331 shares in the last quarter. Finally, Sterling Investment Advisors Ltd. boosted its stake in Microsoft by 1.8% during the second quarter. Sterling Investment Advisors Ltd. now owns 29,406 shares of the software giant's stock worth $10,969,000 after buying an additional 515 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure’s reported 48% growth helped lift Microsoft amid an AI-related tech rebound. Commentary also points to AI demand exceeding available capacity and argues Microsoft can fund its expansion from strong cash flow—an advantage as investors scrutinize rivals’ borrowing and spending. Article: What's Going on with Microsoft Stock on Tuesday? Article: Why Microsoft Was Rewarded for Spending Less on AI
• Positive Sentiment: Microsoft’s AI tools may reach a broader base of PC users: the company says AI can run on a computer with 8GB of memory, potentially supporting adoption of Copilot and related services. Article: AI on an 8GB PC? Yes, Says Microsoft
• Neutral Sentiment: Xbox’s reveal of a new Elder Scrolls title drew attention to Microsoft’s gaming business, but the article provides no indication of near-term financial impact. Article: Microsoft Stock Rises After The Elder Scrolls VI: Sentinel Reveal
• Negative Sentiment: A Seeking Alpha contributor downgraded Microsoft, arguing that the easiest gains may be behind the stock—an assessment that could temper expectations after its recent strength. Article: Microsoft: The Easy Gains Are Already Over (Downgrade)
• Negative Sentiment: Microsoft’s reported $45.2 billion in quarterly capital spending, largely for AI, underscores the risk that infrastructure costs could weigh on cash flow before returns fully materialize. Reports of buyouts offered to roughly 60,000 employees may also prompt questions about workforce changes. Article: 5 questions to ask if your boss offers you a buyout

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 filing with the SEC, 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 firm's stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total value of $3,984,293.10. Following the transaction, the executive vice president owned 555,396 shares in the company, valued at approximately $302,924,086.32. This trade represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 135,504 shares of company stock valued at $68,138,024 in the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages have issued reports on MSFT. Argus lowered their price target on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a report on Friday, July 10th. Needham & Company LLC initiated coverage on shares of Microsoft in a report on Wednesday, September 23rd. They set a "buy" rating for the company. The Goldman Sachs Group reiterated a "buy" rating and set a $640.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Sanford C. Bernstein upped their target price on shares of Microsoft from $662.00 to $722.00 and gave the company an "outperform" rating in a research note on Thursday, October 29th. Finally, Stifel Nicolaus increased their price target on shares of Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a research report on Thursday, October 29th. One research analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $609.54.

Microsoft Price Performance

MSFT opened at $520.99 on Wednesday. The company's 50 day simple moving average is $514.06 and its 200-day simple moving average is $438.92. The stock has a market capitalization of $3.87 trillion, a P/E ratio of 27.19, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a one year low of $349.20 and a one year high of $551.15. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.21.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. The company had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The firm's quarterly revenue was up 18.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $4.13 earnings per share. Sell-side analysts anticipate that Microsoft Corporation will post 19.86 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm 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 dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is presently 19.00%.

About Microsoft

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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