Microsoft Corporation $MSFT Stock Holdings Boosted by Convergence Investment Partners LLC

Key Points

• Convergence Investment Partners increased its Microsoft stake by 25.6% in the first quarter, holding 24,127 shares valued at approximately $8.9 million. Institutional investors collectively own 71.13% of Microsoft’s stock.
• Microsoft reported strong quarterly results, with earnings per share of $4.74 and revenue of $90.01 billion, surpassing analyst expectations; revenue increased 17.7% year over year.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $558.87. Microsoft also announced a quarterly dividend of $0.91 per share, though insider selling and rising AI infrastructure costs could create near-term risks.

Convergence Investment Partners LLC grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 25.6% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 24,127 shares of the software giant's stock after purchasing an additional 4,918 shares during the quarter. Microsoft makes up about 1.5% of Convergence Investment Partners LLC's holdings, making the stock its 8th biggest position. Convergence Investment Partners LLC's holdings in Microsoft were worth $8,931,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also modified their holdings of the stock. Longfellow Investment Management Co. LLC increased its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after purchasing an additional 20 shares in the last quarter. Bernzott Capital Advisors purchased a new stake in shares of Microsoft in the 4th quarter valued at about $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft in the 4th quarter valued at about $36,000. Fairway Wealth LLC grew its stake in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after buying an additional 66 shares during the last quarter. Finally, LSV Asset Management purchased a new position in Microsoft during the 4th quarter worth approximately $44,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

Microsoft stock opened at $499.86 on Friday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The business has a 50 day simple moving average of $403.86 and a 200-day simple moving average of $406.31. The stock has a market capitalization of $3.71 trillion, a PE ratio of 27.83, a price-to-earnings-growth ratio of 1.57 and a beta of 1.11.

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 firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft's quarterly revenue was up 17.7% on a year-over-year basis. During the same period last year, the firm posted $3.65 EPS. Equities analysts predict that Microsoft Corporation will post 19.56 earnings per share for the current year.

Microsoft Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft's payout ratio is presently 20.27%.

Insider Transactions at Microsoft

In related news, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares of the company's stock, valued at $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Amy Coleman sold 1,262 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares of the company's stock, valued at $18,922,874.02. The trade was a 2.67% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 38,572 shares of company stock valued at $17,775,330. Corporate insiders own 0.03% of the company's stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and AI growth are the main catalysts. Azure revenue surpassed $100 billion for fiscal 2026, while fourth-quarter cloud revenue increased 43%. Microsoft also exceeded quarterly revenue and earnings expectations, supporting optimism that AI demand is translating into recurring cloud and enterprise revenue. Microsoft Azure Fiscal 2026 Sales Exceed $100B
• Positive Sentiment: Microsoft is expanding its AI infrastructure footprint in India. The company opened its largest Indian data-center hub in Hyderabad and signed early customers including Adani Group and HDFC Bank. Microsoft has committed approximately $20.5 billion to its Indian operations, positioning Azure for growth in a large and rapidly developing market. Microsoft Opens Its Largest India Data Center Hub
• Positive Sentiment: Wall Street remains constructive. Analysts have raised price targets, including Tigress Financial’s $690 target, citing durable AI and cloud growth. Microsoft’s strong balance sheet, recurring software revenue and approximately $0.91 quarterly dividend also provide support for the long-term investment case. Tigress Raises Microsoft Price Target
• Neutral Sentiment: OpenAI is a significant growth engine but also a concentration risk. Reports estimate that OpenAI may account for roughly 70% of Microsoft’s AI revenue. The relationship boosts near-term demand, but reliance on one partner could increase volatility if economics, technology preferences or customer concentration change. OpenAI May Account for 70 Percent of Microsoft AI Revenue
• Negative Sentiment: Insider selling and legal notices may temper sentiment. CEO Judson Althoff sold 10,000 shares worth about $4.9 million, following EVP Takeshi Numoto’s sale of approximately $2.4 million. Multiple law firms are also promoting a securities class action with an August 11 lead-plaintiff deadline. These items do not establish wrongdoing, but they can add near-term headline pressure.
• Negative Sentiment: AI investment is increasing execution and margin risks. Large data-center commitments and infrastructure spending are necessary to support demand, but could pressure free cash flow and margins if capacity is built ahead of revenue or component shortages delay deployments. Microsoft’s valuation also leaves less room for disappointment after its sharp rally.

Wall Street Analysts Forecast Growth

MSFT has been the subject of a number of research reports. Royal Bank Of Canada reiterated an "outperform" rating and issued a $640.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Citizens Jmp reaffirmed a "market outperform" rating and issued a $550.00 target price on shares of Microsoft in a report on Tuesday, July 28th. Morgan Stanley reiterated an "overweight" rating on shares of Microsoft in a research report on Thursday, July 30th. Barclays decreased their price target on shares of Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Citigroup restated a "buy" rating and issued a $600.00 price objective (up from $570.00) on shares of Microsoft in a research note on Tuesday, July 28th. Forty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $558.87.

Microsoft Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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