Microsoft Corporation $MSFT Stock Position Lifted by GTS Securities LLC

Key Points

• GTS Securities increased its Microsoft position by 44.6% in the second quarter, adding 83,734 shares for a total stake valued at approximately $101.3 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with earnings of $4.74 per share and revenue of $90.01 billion, up 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $592.15, though AI infrastructure spending, valuation and margin pressure remain key risks.

GTS Securities LLC increased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 44.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 271,597 shares of the software giant's stock after buying an additional 83,734 shares during the quarter. Microsoft accounts for approximately 2.1% of GTS Securities LLC's holdings, making the stock its 9th biggest holding. GTS Securities LLC's holdings in Microsoft were worth $101,311,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bank of America Corp DE bought a new position in shares of Microsoft during the second quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of 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 purchased a new stake in shares of Microsoft during the second quarter worth about $18,306,443,000. Amundi grew its stake in shares of Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of Microsoft by 10.5% in 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 purchasing an additional 2,784,809 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors.

Insider Transactions at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction on 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 sale, the chief executive officer directly owned 486,763 shares of the company's stock, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the company's stock in a transaction on 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 completion of the sale, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. The trade was 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 ninety days, insiders have sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company's stock.

Microsoft Price Performance

MSFT stock opened at $524.51 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a 50-day moving average of $508.51 and a 200 day moving average of $446.17. The company has a market cap of $3.90 trillion, a P/E ratio of 29.20, a PEG ratio of 1.68 and a beta of 1.10.

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 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 business had revenue of $90.01 billion for the quarter, compared to analysts' expectations of $87.62 billion. During the same period in the previous year, the firm posted $3.65 EPS. The business's revenue was up 17.7% on a year-over-year basis. On average, sell-side analysts forecast that Microsoft Corporation will post 19.66 EPS for the current year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is presently 20.27%.

Analysts Set New Price Targets

MSFT has been the topic of a number of research analyst reports. Wolfe Research downgraded Microsoft from an "outperform" rating to a "hold" rating in a report on Wednesday, September 23rd. Mizuho increased their price objective on Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a report on Thursday, October 15th. Morgan Stanley lowered Microsoft from an "overweight" rating to a "negative" rating in a research report on Monday, October 5th. Scotiabank lifted their price objective on Microsoft from $510.00 to $615.00 and gave the stock an "outperform" rating in a research report on Monday, October 5th. Finally, CLSA reissued an "outperform" rating on shares of Microsoft in a research note on Thursday, July 30th. Forty-three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $592.15.

Key Microsoft News

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 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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