Microsoft Corporation $MSFT Stock: Saudi Central Bank Raises Position

Key Points

• Saudi Central Bank increased its Microsoft position by 89.5% in the second quarter, bringing its holdings to 493,806 shares valued at approximately $184.2 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue of $92.28 billion and EPS of $4.89, beating expectations; Azure revenue rose 48%. Analysts maintain a broadly bullish outlook, with a consensus “Moderate Buy” rating and an average price target of $609.54.
• Investors are weighing Microsoft’s AI growth opportunities against rising capital requirements, including roughly $170 billion in planned AI spending and a potential $25 billion bond offering. The company also raised its quarterly dividend to $0.98 per share.

Saudi Central Bank increased its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 89.5% during the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 493,806 shares of the software giant's stock after buying an additional 233,185 shares during the period. Microsoft accounts for approximately 2.4% of Saudi Central Bank's portfolio, making the stock its 7th largest holding. Saudi Central Bank's holdings in Microsoft were worth $184,200,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Bank of America Corp DE purchased a new position in shares of Microsoft during the second quarter worth about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of 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 worth $24,013,297,000 after purchasing an additional 543,172 shares during the last quarter. Legal & General Group Plc purchased a new stake in Microsoft in the second quarter valued at approximately $18,306,443,000. Amundi raised its stake in Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Microsoft by 10.5% in 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 purchasing an additional 2,784,809 shares in the last quarter. Institutional investors own 71.13% of the company's stock.

Analysts Set New Price Targets

Several brokerages have issued reports on MSFT. Sanford C. Bernstein boosted their price target on shares of Microsoft from $662.00 to $722.00 and gave the stock an "outperform" rating in a research note on Thursday. Stifel Nicolaus increased their price target on shares of Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a report on Thursday. CLSA restated an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Wolfe Research raised shares of Microsoft from a "hold" rating to a "strong-buy" rating in a report on Thursday. Finally, JPMorgan Chase & Co. reiterated a "buy" rating on shares of Microsoft in a research report on Monday, September 28th. One analyst has rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $609.54.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

Microsoft Stock Performance

NASDAQ:MSFT opened at $521.91 on Friday. The company has a market capitalization of $3.88 trillion, a price-to-earnings ratio of 27.24, a PEG ratio of 1.64 and a beta of 1.10. The business has a 50 day moving average of $512.91 and a 200 day moving average of $438.43. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.22. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $551.15.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating analysts' consensus estimates of $4.72 by $0.17. The business had revenue of $92.28 billion for the quarter, compared to analysts' expectations of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The business's quarterly revenue was up 18.8% on a year-over-year basis. During the same period last year, the business earned $4.13 earnings per share. On average, sell-side analysts predict that Microsoft Corporation will post 19.79 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is a positive change 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 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft's dividend payout ratio is currently 19.00%.

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. The trade was a 7.24% 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. Insiders sold a total of 150,314 shares of company stock worth $75,404,992 in the last quarter. 0.03% of the stock is currently owned by company insiders.

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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