Microsoft Corporation $MSFT Stock Purchased by National Pension Service

Key Points

• National Pension Service increased its Microsoft stake by 2.2%, adding 322,336 shares to reach 15.24 million shares worth about $5.68 billion. Microsoft is the fund’s third-largest holding.
• Microsoft beat quarterly earnings and revenue estimates, reporting EPS of $4.89 and revenue of $92.28 billion, up 18.8% year over year.
• The company raised its quarterly dividend from $0.91 to $0.98 per share. Analysts maintain a consensus “Moderate Buy” rating, with an average price target of $609.54.

National Pension Service increased its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.2% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 15,239,745 shares of the software giant's stock after buying an additional 322,336 shares during the quarter. Microsoft comprises 3.7% of National Pension Service's investment portfolio, making the stock its 3rd biggest holding. National Pension Service owned about 0.21% of Microsoft worth $5,684,730,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in the company. Bank of America Corp DE purchased a new stake in Microsoft in the 2nd quarter valued at $27,338,370,000. Legal & General Group Plc purchased a new position in Microsoft during the 2nd quarter worth $18,306,443,000. Jupiter Topco LLC purchased a new position in Microsoft during the 2nd quarter worth $6,928,664,000. Canada Pension Plan Investment Board acquired a new position in Microsoft in the second quarter valued at $5,653,812,000. Finally, The Manufacturers Life Insurance Company acquired a new position in Microsoft in the second quarter valued at $4,000,706,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft Trading Up 2.7%

NASDAQ MSFT opened at $520.99 on Wednesday. The company has a quick ratio of 1.21, a current ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $3.87 trillion, a P/E ratio of 27.19, a P/E/G ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $551.15. The firm has a 50-day moving average price of $514.06 and a 200 day moving average price of $438.92.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating analysts' consensus estimates of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. During the same quarter in the previous year, the company earned $4.13 EPS. The firm's revenue for the quarter was up 18.8% compared to the same quarter last year. Equities research analysts expect that Microsoft Corporation will post 19.86 EPS for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is 19.00%.

Insider Activity at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of Microsoft 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 sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through 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 transaction, the executive vice president directly owned 555,396 shares in the company, valued at $302,924,086.32. This represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 135,504 shares of company stock valued at $68,138,024 over the last three months. Insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently commented on MSFT. Wolfe Research raised shares of Microsoft from a "hold" rating to a "strong-buy" rating in a report on Thursday, October 29th. Citigroup reissued a "market outperform" rating on shares of Microsoft in a report on Thursday, October 29th. Morgan Stanley restated an "overweight" rating on shares of Microsoft in a research report on Thursday, October 29th. Rothschild & Co Redburn set a $440.00 price objective on Microsoft in a research note on Monday, September 21st. Finally, Tigress Financial increased their price objective on Microsoft from $680.00 to $690.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $609.54.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure’s reported 48% growth helped lift Microsoft amid an AI-related tech rebound. Commentary also points to AI demand exceeding available capacity and argues Microsoft can fund its expansion from strong cash flow—an advantage as investors scrutinize rivals’ borrowing and spending. Article: What's Going on with Microsoft Stock on Tuesday? Article: Why Microsoft Was Rewarded for Spending Less on AI
• Positive Sentiment: Microsoft’s AI tools may reach a broader base of PC users: the company says AI can run on a computer with 8GB of memory, potentially supporting adoption of Copilot and related services. Article: AI on an 8GB PC? Yes, Says Microsoft
• Neutral Sentiment: Xbox’s reveal of a new Elder Scrolls title drew attention to Microsoft’s gaming business, but the article provides no indication of near-term financial impact. Article: Microsoft Stock Rises After The Elder Scrolls VI: Sentinel Reveal
• Negative Sentiment: A Seeking Alpha contributor downgraded Microsoft, arguing that the easiest gains may be behind the stock—an assessment that could temper expectations after its recent strength. Article: Microsoft: The Easy Gains Are Already Over (Downgrade)
• Negative Sentiment: Microsoft’s reported $45.2 billion in quarterly capital spending, largely for AI, underscores the risk that infrastructure costs could weigh on cash flow before returns fully materialize. Reports of buyouts offered to roughly 60,000 employees may also prompt questions about workforce changes. Article: 5 questions to ask if your boss offers you a buyout

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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