Old Mission Investment Co LLC Acquires New Holdings in Microsoft Corporation $MSFT

Key Points

• Old Mission Investment Co. LLC acquired 17,424 Microsoft shares worth approximately $6.5 million in the second quarter, making Microsoft 1.4% of its portfolio. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly revenue of $92.28 billion and earnings of $4.89 per share, beating analyst estimates; revenue increased 18.8% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analysts remain broadly positive, with Microsoft carrying a “Moderate Buy” consensus rating and an average price target of $609.54, although concerns include heavy AI-related spending and revenue concentration tied to OpenAI.

Old Mission Investment Co LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 17,424 shares of the software giant's stock, valued at approximately $6,500,000. Microsoft makes up 1.4% of Old Mission Investment Co LLC's portfolio, making the stock its 14th biggest position.

A number of other hedge funds have also recently bought and sold shares of the company. Box Hill Private Wealth LLC grew its holdings in Microsoft by 0.5% in the 2nd quarter. Box Hill Private Wealth LLC now owns 4,272 shares of the software giant's stock valued at $1,593,000 after buying an additional 21 shares during the period. Strategic Wealth Advisors LLC raised its stake in shares of Microsoft by 1.7% in the 2nd quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant's stock valued at $549,000 after acquiring an additional 24 shares during the period. Friedenthal Financial boosted its position in shares of Microsoft by 6.2% in the first quarter. Friedenthal Financial now owns 431 shares of the software giant's stock worth $160,000 after buying an additional 25 shares during the period. Sequent Planning LLC grew its position in Microsoft by 0.7% in the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock valued at $1,382,000 after acquiring an additional 25 shares in the last quarter. Finally, Lee Johnson Capital Management LLC increased its stake in Microsoft by 3.8% during the 2nd quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock worth $256,000 after buying an additional 25 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft Trading Down 0.2%

Shares of MSFT stock opened at $530.14 on Friday. The stock has a 50-day simple moving average of $512.10 and a 200 day simple moving average of $438.21. The stock has a market capitalization of $3.94 trillion, a P/E ratio of 27.67, a P/E/G ratio of 1.67 and a beta of 1.10. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $551.15.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating the consensus estimate of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 32.31%. The business had revenue of $92.28 billion during the quarter, compared to analyst estimates of $90.62 billion. During the same period in the prior year, the business earned $4.13 earnings per share. The business's quarterly revenue was up 18.8% on a year-over-year basis. On average, sell-side analysts expect that Microsoft Corporation will post 19.66 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently announced 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. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft's dividend payout ratio is 20.27%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reported fiscal Q1 revenue of $92.28 billion and adjusted earnings of $4.89 per share, exceeding analyst estimates. Revenue grew 18.8% year over year, while Azure revenue surged 48% to approximately $33.2 billion, reinforcing the company’s position as a leading beneficiary of enterprise AI adoption. Microsoft beats quarterly cloud revenue estimates
• Positive Sentiment: Strong cloud growth, a $677 billion commercial backlog and expanding Copilot and AI-agent adoption have prompted several analysts to raise their price targets, including Citigroup’s $680 target and RBC’s $640 target. Microsoft stock slips despite strong Azure growth
• Positive Sentiment: Microsoft generated approximately $18.6 billion in free cash flow, giving it substantially more flexibility than some rivals to fund AI investments without relying exclusively on debt. Analysts argue that the spending should be judged against the company’s cash generation and monetization potential. Microsoft Q1 capex and free cash flow
• Positive Sentiment: Microsoft is broadening Copilot distribution through education and finance-workflow integrations, while its AI-agent governance tools are attracting interest from major developers. These moves support the case for multiple long-term AI revenue streams. Microsoft expands Copilot in education
• Neutral Sentiment: Microsoft plans to issue as much as $25 billion in bonds, its first major U.S. bond sale since 2017, to support data-center and AI investment. Strong demand for the offering highlights investor confidence, but the borrowing also focuses attention on the scale of future capital requirements. Microsoft expects to raise $25 billion in bond sale
• Negative Sentiment: Capital expenditures came in below expectations, and Microsoft reduced its forecast to roughly $170 billion from $175 billion. Management attributed the shortfall to third-party chip and data-center capacity delays, but investors remain concerned that elevated spending may pressure returns and margins. AI buildout capex estimates
• Negative Sentiment: About $10 billion of quarterly revenue was tied to commercial arrangements with OpenAI, or nearly 11% of total revenue, increasing concentration and counterparty-risk concerns as the companies increasingly compete in AI services. Microsoft recorded $10 billion in revenue from OpenAI

Analysts Set New Price Targets

Several equities research analysts have issued reports on MSFT shares. TD Cowen lifted their price objective on Microsoft from $625.00 to $650.00 and gave the stock a "buy" rating in a report on Thursday. Citigroup reiterated a "market outperform" rating on shares of Microsoft in a research note on Thursday. William Blair started coverage on shares of Microsoft in a report on Monday, October 5th. They set an "outperform" rating for the company. Mizuho lifted their target price on Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a research report on Thursday, October 15th. Finally, BNP Paribas Exane lowered shares of Microsoft from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Forty-five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Microsoft has a consensus rating of "Moderate Buy" and an average target price of $609.54.

Insider Activity

In related news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction on Tuesday, September 1st. The shares were 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 of the company's stock, valued at approximately $244,092,173.98. The trade was a 15.09% 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. In the last quarter, insiders have sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is currently owned by company 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.

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