Microsoft Corporation $MSFT Stock Purchased by Greenwood Capital Associates LLC

Key Points

• Greenwood Capital Associates increased its Microsoft stake by 5% in the second quarter, holding 74,824 shares valued at approximately $27.9 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported a strong quarter, with EPS of $4.74 and revenue of $90.01 billion, exceeding analyst estimates; revenue rose 17.7% year over year.
• The company raised its quarterly dividend to $0.98 per share, while analysts maintained a “Moderate Buy” consensus with an average price target of $592.15. Investors remain focused on Azure growth, AI monetization and whether heavy infrastructure spending will support future margins.

Greenwood Capital Associates LLC boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 74,824 shares of the software giant's stock after purchasing an additional 3,587 shares during the period. Microsoft comprises 2.8% of Greenwood Capital Associates LLC's portfolio, making the stock its 7th largest holding. Greenwood Capital Associates LLC's holdings in Microsoft were worth $27,911,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in MSFT. Greenleaf Trust grew its position in Microsoft by 1.5% in the 2nd quarter. Greenleaf Trust now owns 296,267 shares of the software giant's stock worth $110,514,000 after purchasing an additional 4,452 shares during the period. Trustmark Bank Trust Department lifted its holdings in shares of Microsoft by 0.3% during the 2nd quarter. Trustmark Bank Trust Department now owns 43,531 shares of the software giant's stock valued at $16,238,000 after buying an additional 143 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Microsoft by 0.9% during the 2nd 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 buying an additional 543,172 shares during the period. New Mexico Educational Retirement Board lifted its holdings in shares of Microsoft by 14.7% during the 2nd quarter. New Mexico Educational Retirement Board now owns 392,261 shares of the software giant's stock valued at $146,321,000 after buying an additional 50,314 shares during the period. Finally, Royal London Asset Management Ltd. boosted its stake in shares of Microsoft by 2.1% in the 2nd quarter. Royal London Asset Management Ltd. now owns 5,802,929 shares of the software giant's stock worth $2,164,609,000 after buying an additional 117,089 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Trading Up 0.7%

NASDAQ MSFT opened at $524.51 on Friday. The stock has a market cap of $3.90 trillion, a PE ratio of 29.20, a PEG ratio of 1.67 and a beta of 1.10. 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 $508.51 and its 200-day moving average price is $446.17. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced 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 company 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%. The firm's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $3.65 EPS. Equities research analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid 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 of this dividend is Thursday, November 19th. Microsoft's payout ratio is presently 20.27%.

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

Analyst Upgrades and Downgrades

Several research analysts have weighed in on MSFT shares. Melius Research set a $665.00 price target on shares of Microsoft and gave the stock a "buy" rating in a research report on Monday, October 5th. BMO Capital Markets boosted their target price on shares of Microsoft from $515.00 to $600.00 and gave the stock an "outperform" rating in a report on Tuesday. Piper Sandler restated an "overweight" rating on shares of Microsoft in a research report on Tuesday. Bank of America lifted their price target on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. Finally, Truist Financial reissued a "buy" rating and set a $575.00 price objective on shares of Microsoft in a report on Wednesday, July 22nd. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $592.15.

Insider Activity at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction that occurred 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 owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred 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 completion of the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. Insiders own 0.03% of the company's stock.

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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