Nichols & Pratt Advisers LLP MA Purchases 2,508 Shares of Microsoft Corporation $MSFT

Key Points

• Nichols & Pratt Advisers LLP MA increased its Microsoft stake by 1.3% in the second quarter, adding 2,508 shares to hold 190,060 shares valued at approximately $70.9 million. Microsoft represents 4.3% of the firm’s portfolio, while institutional investors own 71.13% of MSFT.
• Microsoft reported strong quarterly results, with EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion, up 17.7% year over year. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $592.15.
• Investors are focused on the upcoming earnings report, particularly Azure growth, Copilot adoption, AI monetization and capital spending. While AI and cloud demand support the outlook, heavy infrastructure investment, valuation concerns and recent insider selling could pressure margins and sentiment.

Nichols & Pratt Advisers LLP MA increased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.3% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 190,060 shares of the software giant's stock after acquiring an additional 2,508 shares during the period. Microsoft makes up 4.3% of Nichols & Pratt Advisers LLP MA's portfolio, making the stock its 5th biggest position. Nichols & Pratt Advisers LLP MA's holdings in Microsoft were worth $70,896,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of MSFT. Frankly Finances LLC bought a new position in shares of Microsoft in the second quarter worth $35,000. Bard Associates Inc. acquired a new stake in Microsoft in the second quarter worth about $37,000. PMV Capital Advisers LLC acquired a new stake in Microsoft in the second quarter worth about $38,000. Fiduciary Advisors Inc. lifted its holdings in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after purchasing an additional 34 shares during the period. Finally, Persistent Asset Partners Ltd bought a new position in Microsoft in the 2nd quarter valued at about $60,000. 71.13% of the stock is currently owned by institutional investors.

Trending Headlines about Microsoft

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 Stock Performance

Shares of MSFT opened at $524.51 on Friday. The firm's 50 day moving average is $508.51 and its 200-day moving average is $446.17. The stock has a market capitalization of $3.90 trillion, a P/E ratio of 29.20, a P/E/G ratio of 1.68 and a beta of 1.10. 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 12-month low of $349.20 and a 12-month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The business 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 business's quarterly revenue was up 17.7% on a year-over-year basis. During the same period in the prior year, the business earned $3.65 earnings per share. Equities research analysts anticipate that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This is an increase 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 dividend payout ratio is currently 20.27%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Barclays raised their target price on shares of Microsoft from $512.00 to $600.00 and gave the company an "overweight" rating in a research note on Tuesday, October 13th. BNP Paribas Exane lowered shares of Microsoft from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Truist Financial reiterated a "buy" rating and issued a $575.00 price objective on shares of Microsoft in a report on Wednesday, July 22nd. Finally, CLSA reiterated 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 given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $592.15.

Insider Buying and Selling

In other news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Amy Hood sold 7,305 shares of the firm'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 sale, the executive vice president directly owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. This represents a 1.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 150,314 shares of company stock worth $75,404,992 over the last quarter. 0.03% of the stock is currently owned by insiders.

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.

Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.