Microsoft Corporation $MSFT Stock: Jasper Ridge Partners L.P. Grows Holdings

Key Points

• Jasper Ridge Partners increased its Microsoft stake by 13.9% in the second quarter to 86,470 shares valued at approximately $32.3 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Analyst sentiment remains broadly positive, with 43 Buy ratings, four Holds and two Sells; the stock has a “Moderate Buy” consensus and an average price target of $592.15. However, some insiders sold shares, including CEO Judson Althoff, while Raymond James downgraded the stock to “strong sell.”
• Microsoft exceeded quarterly earnings and revenue expectations, reporting $4.74 in EPS and $90.01 billion in revenue, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, representing a 0.7% yield.

Jasper Ridge Partners L.P. lifted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 13.9% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 86,470 shares of the software giant's stock after buying an additional 10,584 shares during the period. Microsoft makes up approximately 0.7% of Jasper Ridge Partners L.P.'s investment portfolio, making the stock its 12th biggest position. Jasper Ridge Partners L.P.'s holdings in Microsoft were worth $32,255,000 as of its most recent SEC filing.

Other large investors have also added to or reduced their stakes in the company. Bank of America Corp DE acquired a new position in Microsoft in the second quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Microsoft by 0.9% during the second 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 purchasing an additional 543,172 shares during the period. Legal & General Group Plc bought a new stake in Microsoft during the second quarter worth about $18,306,443,000. Amundi grew its stake in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after buying an additional 9,814,598 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after buying an additional 2,784,809 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

Analyst Ratings Changes

Several equities analysts have commented on the stock. UBS Group raised their target price on shares of Microsoft from $525.00 to $675.00 and gave the company a "buy" rating in a report on Thursday, October 15th. Citizens Jmp reaffirmed a "market outperform" rating and set a $550.00 price target on shares of Microsoft in a report on Tuesday, September 15th. Cantor Fitzgerald increased their price target on shares of Microsoft from $522.00 to $608.00 and gave the stock an "overweight" rating in a research report on Monday, September 21st. Raymond James Financial cut shares of Microsoft from a "moderate buy" rating to a "strong sell" rating in a research note on Wednesday, September 23rd. Finally, Bank of America lifted their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research note on Tuesday, September 1st. Forty-three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $592.15.

Insider Activity at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were 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 approximately $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 150,314 shares of company stock valued at $75,404,992 in the last quarter. 0.03% of the stock is owned by company insiders.

Microsoft Stock Performance

NASDAQ:MSFT opened at $524.51 on Friday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. 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 stock's 50-day simple moving average is $508.51 and its 200 day simple moving average is $446.17. The firm has a market capitalization of $3.90 trillion, a PE ratio of 29.20, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The business's quarterly revenue was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.65 earnings per share. On average, analysts anticipate that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. 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 annualized dividend and a dividend yield of 0.7%. Microsoft's payout ratio is presently 20.27%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Microsoft Profile

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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