Operose Advisors LLC Buys 1,228 Shares of Microsoft Corporation $MSFT

Key Points

• Operose Advisors increased its Microsoft position by 10.1% in the second quarter, buying 1,228 shares to hold 13,435 shares valued at approximately $5.0 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with revenue of $92.28 billion, EPS of $4.89 and Azure growth of 48%. Management also provided above-consensus revenue guidance, contributing to a “Moderate Buy” analyst consensus and an average price target of $609.54.
• Investors remain focused on the risks of Microsoft’s AI expansion, including roughly $170 billion in planned capital spending, a $25 billion debt offering and pressure on cloud margins. The company nonetheless raised its quarterly dividend to $0.98 per share, implying a 0.8% yield.

Operose Advisors LLC boosted its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 10.1% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 13,435 shares of the software giant's stock after purchasing an additional 1,228 shares during the quarter. Microsoft makes up approximately 1.0% of Operose Advisors LLC's investment portfolio, making the stock its 16th largest holding. Operose Advisors LLC's holdings in Microsoft were worth $5,012,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its holdings in shares of Microsoft by 4.0% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant's stock valued at $85,604,000 after purchasing an additional 8,773 shares during the period. D.B. Root & Company LLC acquired a new stake in shares of Microsoft during the second quarter worth about $3,652,000. Dearborn Partners LLC acquired a new stake in shares of Microsoft during the second quarter worth about $75,641,000. GTS Securities LLC lifted its holdings in shares of Microsoft by 44.6% during the second quarter. GTS Securities LLC now owns 271,597 shares of the software giant's stock worth $101,311,000 after purchasing an additional 83,734 shares during the period. Finally, Henson Edgewater Management LLC purchased a new stake in Microsoft in the second quarter valued at approximately $9,430,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Key Stories Impacting 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 Down 1.6%

Shares of MSFT stock opened at $521.91 on Friday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $551.15. The stock has a market cap of $3.88 trillion, a P/E ratio of 27.24, a P/E/G ratio of 1.64 and a beta of 1.10. The stock has a 50 day moving average of $512.91 and a 200 day moving average of $438.43. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping the consensus estimate of $4.72 by $0.17. The business had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The business's quarterly revenue was up 18.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.13 EPS. As a group, sell-side analysts expect that Microsoft Corporation will post 19.79 EPS for the current year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date 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 dividend payout ratio (DPR) is presently 19.00%.

Insider Activity

In related news, EVP Amy Hood sold 41,674 shares of the firm's stock in a transaction on 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 in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction 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 completion of the transaction, 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, 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.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MSFT. Yorkville Ives assumed coverage on shares of Microsoft in a report on Monday, October 5th. They issued an "outperform" rating and a $615.00 price target on the stock. Evercore upgraded shares of Microsoft from an "underperform" rating to an "outperform" rating in a research note on Monday, October 5th. Bank of America upped their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. Benchmark reiterated a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Finally, TD Cowen raised their target price on shares of Microsoft from $625.00 to $650.00 and gave the stock a "buy" rating in a report on Thursday. 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, the company presently has a consensus rating of "Moderate Buy" and an average price target of $609.54.

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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