Microsoft Corporation $MSFT Stock Holdings Boosted by Davis R M Inc.

Key Points

• Davis R M Inc. increased its Microsoft stake by 4.5% to 476,890 shares worth approximately $176.5 million, while institutional investors collectively own 71.13% of the company.
• Microsoft reported stronger-than-expected quarterly results, with $4.74 in EPS and $90.01 billion in revenue, representing 17.7% year-over-year growth. The company also declared a quarterly dividend of $0.91 per share, yielding about 0.7% annually.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $558.87, although insider selling, rising AI infrastructure costs, customer concentration and valuation remain potential risks.

Davis R M Inc. raised its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 476,890 shares of the software giant's stock after purchasing an additional 20,368 shares during the period. Microsoft accounts for approximately 3.1% of Davis R M Inc.'s portfolio, making the stock its 6th largest holding. Davis R M Inc.'s holdings in Microsoft were worth $176,530,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of the company. Ascension Capital Advisors Inc. lifted its position in shares of Microsoft by 84.3% during the 1st quarter. Ascension Capital Advisors Inc. now owns 9,549 shares of the software giant's stock valued at $3,535,000 after buying an additional 4,369 shares during the last quarter. GSG Advisors LLC increased its holdings in Microsoft by 5.4% in the 1st quarter. GSG Advisors LLC now owns 22,317 shares of the software giant's stock worth $8,261,000 after acquiring an additional 1,152 shares during the last quarter. Envision Financial Transparency LLC bought a new stake in Microsoft in the 1st quarter valued at about $319,000. Coronation Fund Managers Ltd. lifted its holdings in Microsoft by 49.3% during the first quarter. Coronation Fund Managers Ltd. now owns 138,606 shares of the software giant's stock valued at $51,308,000 after purchasing an additional 45,793 shares during the last quarter. Finally, American Investment Services Inc. lifted its holdings in Microsoft by 3.1% during the first quarter. American Investment Services Inc. now owns 876 shares of the software giant's stock valued at $324,000 after purchasing an additional 26 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the sale, the executive vice president directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 38,572 shares of company stock worth $17,775,330. Company insiders own 0.03% of the company's stock.

Microsoft Price Performance

NASDAQ:MSFT opened at $499.99 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm has a market cap of $3.71 trillion, a PE ratio of 27.84, a price-to-earnings-growth ratio of 1.61 and a beta of 1.11. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company's 50-day moving average price is $404.86 and its two-hundred day moving average price is $406.96.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results 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 business had revenue of $90.01 billion during 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 revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the business posted $3.65 earnings per share. On average, equities analysts anticipate that Microsoft Corporation will post 19.58 EPS for the current fiscal year.

Microsoft Announces Dividend

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

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Citi raised its Microsoft price target to $600. The upgrade follows Microsoft’s quarterly Azure performance, with analysts highlighting the 43% cloud-revenue increase and stronger-than-expected earnings as evidence that AI demand is translating into accelerating cloud growth. Citi Raises Microsoft Stock Target to $600
• Positive Sentiment: Microsoft’s custom AI chips may improve cloud economics. CEO Satya Nadella said the company’s internally developed chips can deliver efficiency gains of up to 40%. Better cost and energy efficiency could help Microsoft support AI workloads while protecting Azure margins. Microsoft Custom AI Chips Improve Efficiency
• Positive Sentiment: Azure is expanding in India. Microsoft opened a major Hyderabad data-center region and is committing approximately $20.5 billion to its Indian cloud and AI operations. Early customers include Adani Group and HDFC Bank, supporting the case for long-term international Azure growth. Microsoft Opens Largest India Data Center Hub
• Positive Sentiment: Fundamentals and institutional support remain strong. Microsoft recently exceeded quarterly revenue and EPS expectations, while Bill Ackman’s Pershing Square holds a reported $2.4 billion MSFT position. Scotiabank also raised its fiscal 2027 EPS estimate and maintained an Outperform rating. Bill Ackman Microsoft Stake
• Neutral Sentiment: AI demand is powerful but concentrated. Reports suggest OpenAI may account for a substantial portion of Microsoft’s AI sales, creating both a major growth engine and customer-concentration risk. Microsoft’s large AI backlog also does not guarantee equivalent future profitability.
• Negative Sentiment: Spending, margins and valuation remain concerns. Rising data-center capital expenditures and lower cloud gross margins could pressure cash flow if AI infrastructure costs grow faster than revenue. After the sharp post-earnings rally, the stock is also more vulnerable to profit-taking or disappointing guidance.
• Negative Sentiment: Insider sales and securities litigation add headline risk. CEO Judson Althoff sold 10,000 shares for roughly $4.9 million, and multiple law firms are publicizing a securities class action with an August 11 lead-plaintiff deadline. These developments do not establish wrongdoing but may weigh on near-term sentiment.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on MSFT shares. Sanford C. Bernstein lifted their target price on shares of Microsoft from $646.00 to $647.00 and gave the stock an "outperform" rating in a research note on Thursday, July 30th. DA Davidson reaffirmed a "buy" rating and issued a $550.00 price objective on shares of Microsoft in a report on Thursday, July 30th. DZ Bank reiterated a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Royal Bank Of Canada reissued an "outperform" rating and set a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Finally, BNP Paribas Exane cut their price target on Microsoft from $556.00 to $555.00 and set an "outperform" rating for the company in a report on Friday, May 1st. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $558.87.

Microsoft Company 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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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