Osbon Capital Management LLC Buys New Holdings in Microsoft Corporation $MSFT

Key Points

• Osbon Capital Management initiated a Microsoft position in the second quarter, buying 3,550 shares valued at approximately $1.32 million, representing about 1% of its portfolio.
• Institutional ownership remains substantial at 71.13%, while analysts maintain a bullish outlook: 42 rate Microsoft a Buy, with a consensus “Moderate Buy” rating and $589.71 target price.
• Microsoft exceeded quarterly earnings and revenue expectations, with revenue up 17.7% year over year, and raised its quarterly dividend to $0.98 per share. Investors remain focused on AI spending, Azure growth and potential regulatory pressure on its cloud and software businesses.

Osbon Capital Management LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 3,550 shares of the software giant's stock, valued at approximately $1,324,000. Microsoft comprises about 1.0% of Osbon Capital Management LLC's portfolio, making the stock its 17th biggest position.

Other institutional investors also recently added to or reduced their stakes in the company. Auto Owners Insurance Co lifted its position in shares of Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares during the last quarter. Amundi grew its stake in shares of Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock valued at $8,982,083,000 after buying an additional 9,493,778 shares during the last quarter. Finally, Hsbc Holdings PLC increased its holdings in Microsoft by 7.8% in the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant's stock valued at $10,715,379,000 after buying an additional 1,599,412 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Insider Buying and Selling at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the firm's 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 transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 150,314 shares of company stock worth $75,404,992 in the last 90 days. Company insiders own 0.03% of the company's stock.

Analyst Ratings Changes

MSFT has been the topic of a number of analyst reports. Bank of America raised their price target on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research note on Tuesday, September 1st. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $600.00 price target on shares of Microsoft in a report on Monday, October 12th. Mizuho upped their price objective on Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a research report on Thursday. KeyCorp reiterated an "overweight" rating on shares of Microsoft in a report on Thursday, September 3rd. Finally, Cantor Fitzgerald raised their target price on Microsoft from $522.00 to $608.00 and gave the stock an "overweight" rating in a research report on Monday, September 21st. Forty-two 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 stock. According to data from MarketBeat, Microsoft presently has a consensus rating of "Moderate Buy" and a consensus target price of $589.71.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive
• Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource
• Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper
• Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins.
• Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip
• Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $529.05 on Friday. The stock has a market cap of $3.93 trillion, a P/E ratio of 29.46, a P/E/G ratio of 1.70 and a beta of 1.10. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The stock has a 50 day moving average of $505.53 and a two-hundred day moving average of $440.59. 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 announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for 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 company's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period last year, the firm posted $3.65 earnings per share. On average, research analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a $0.98 dividend. This is a positive change from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft's payout ratio 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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