Nwam LLC Buys 7,440 Shares of Microsoft Corporation $MSFT

Key Points

• Nwam LLC increased its Microsoft stake by 3.2% in the second quarter, acquiring 7,440 shares and bringing its holdings to 236,996 shares valued at approximately $88.4 million. Microsoft now represents 4.4% of Nwam’s portfolio.
• Analysts remain broadly bullish, with 43 Buy ratings and a consensus “Moderate Buy” rating alongside an average price target of $592.15. Microsoft’s latest quarter exceeded expectations, with revenue up 17.7% year over year, while Azure growth and upcoming earnings remain key catalysts.
• AI investment is both an opportunity and a risk: custom silicon, Azure expansion and healthcare AI could support future growth, but heavy data-center spending, margin pressure and operational challenges may weigh on valuation. Microsoft also raised its quarterly dividend to $0.98 per share.

Nwam LLC lifted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 3.2% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 236,996 shares of the software giant's stock after buying an additional 7,440 shares during the period. Microsoft comprises approximately 4.4% of Nwam LLC's holdings, making the stock its largest holding. Nwam LLC's holdings in Microsoft were worth $88,404,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the stock. Bank of America Corp DE acquired a new position in Microsoft during the second quarter worth $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted 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 valued at $24,013,297,000 after acquiring an additional 543,172 shares during the period. Legal & General Group Plc acquired a new stake in shares of Microsoft in the 2nd quarter valued at $18,306,443,000. Amundi boosted its stake in shares of Microsoft by 30.8% in the 1st 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 boosted its stake in shares of Microsoft by 10.5% in the 1st 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. 71.13% of the stock is owned by institutional investors and hedge funds.

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

Insider Transactions at Microsoft

In other news, EVP Amy Hood sold 41,674 shares of Microsoft stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the sale, the executive vice president directly owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated 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 of the company's stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 over the last 90 days. 0.03% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on MSFT shares. Oppenheimer upped their target price on shares of Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a report on Tuesday, September 22nd. Melius Research set a $665.00 price target on shares of Microsoft and gave the company a "buy" rating in a report on Monday, October 5th. KeyCorp restated an "overweight" rating on shares of Microsoft in a research report on Thursday, September 3rd. Piper Sandler reaffirmed an "overweight" rating on shares of Microsoft in a research note on Tuesday, October 20th. Finally, Yorkville Ives began coverage on shares of Microsoft in a report on Monday, October 5th. They set an "outperform" rating and a $615.00 price objective for the company. Forty-three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $592.15.

Microsoft Price Performance

Shares of MSFT stock opened at $524.51 on Monday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm's 50 day moving average is $508.51 and its 200-day moving average is $446.69. The firm has a market capitalization of $3.90 trillion, a price-to-earnings ratio of 29.20, a PEG ratio of 1.68 and a beta of 1.10. 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 issued its quarterly earnings results 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 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%. Microsoft's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the business posted $3.65 earnings per share. Sell-side analysts forecast that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

About Microsoft

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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