Microsoft Corporation $MSFT Stock: Nan Shan Life Insurance Co. Ltd. Grows Holdings

Key Points

• Nan Shan Life Insurance increased its Microsoft stake by 27.2% in the second quarter to 346,888 shares valued at approximately $129.4 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with earnings of $4.74 per share and revenue of $90.01 billion, beating estimates and representing 17.7% year-over-year revenue growth.
• The company raised its quarterly dividend to $0.98 per share, or $3.92 annually, while analysts maintain a “Moderate Buy” consensus and a $594.11 average price target, citing Azure growth and AI-related demand.

Nan Shan Life Insurance Co. Ltd. lifted its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 27.2% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 346,888 shares of the software giant's stock after acquiring an additional 74,246 shares during the period. Microsoft accounts for about 4.2% of Nan Shan Life Insurance Co. Ltd.'s portfolio, making the stock its 4th largest position. Nan Shan Life Insurance Co. Ltd.'s holdings in Microsoft were worth $129,396,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Bank of America Corp DE bought a new position in Microsoft in the second quarter worth approximately $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Microsoft by 0.9% in 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 valued at $24,013,297,000 after acquiring an additional 543,172 shares during the period. Legal & General Group Plc acquired a new stake in Microsoft in the second quarter valued at approximately $18,306,443,000. Amundi increased its holdings in shares of Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock valued at $15,426,862,000 after acquiring an additional 9,814,598 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after acquiring an additional 2,784,809 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

Microsoft Stock Performance

Shares of MSFT opened at $532.60 on Tuesday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a 50 day moving average price of $508.43 and a two-hundred day moving average price of $437.18. The firm has a market capitalization of $3.96 trillion, a P/E ratio of 29.65, a P/E/G ratio of 1.68 and a beta of 1.10. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the prior year, the business posted $3.65 earnings per share. The company's quarterly revenue was up 17.7% compared to the same quarter last year. Equities analysts forecast that Microsoft Corporation will post 19.66 earnings per share 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 represents a $3.92 annualized dividend and a yield of 0.7%. This is an increase from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is currently 20.27%.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is offering voluntary buyouts to approximately 60,000 employees in the U.S., Canada, India and the U.K. The program is aimed at reducing costs and reallocating resources toward artificial intelligence, data centers and other strategic priorities. Investors appear to view the move as a way to help offset the company’s substantial AI infrastructure spending. Microsoft offers voluntary buyouts to 60,000 employees
• Positive Sentiment: Analysts raised their price targets ahead of earnings. Oppenheimer lifted its target to $625 from $570, while Truist raised its target to $600 from $575 and maintained a Buy rating, citing resilient Azure growth and strong enterprise demand. Oppenheimer raises Microsoft target ahead of earnings
• Positive Sentiment: Wall Street expects continued momentum in Azure and Copilot monetization. Microsoft reports fiscal first-quarter results on October 28, making cloud growth, AI demand and spending efficiency important near-term catalysts. Microsoft stock gains as Wall Street sees Azure growth

Insider Buying and Selling

In related news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Amy Hood sold 7,305 shares of the firm's stock in a transaction on Tuesday, October 13th. The shares were 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MSFT. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $600.00 target price on shares of Microsoft in a research report on Monday, October 12th. Argus cut their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a report on Friday, July 10th. Tigress Financial lifted their price target on shares of Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Scotiabank restated an "outperform" rating on shares of Microsoft in a research note on Monday. Finally, William Blair assumed coverage on shares of Microsoft in a report on Monday, October 5th. They set an "outperform" rating on the stock. Forty-three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $594.11.

Microsoft Company 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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