OV Management LLC Makes New Investment in Microsoft Corporation $MSFT

Key Points

• OV Management LLC initiated a Microsoft position in the second quarter, buying 1,157 shares valued at approximately $432,000. Microsoft now represents about 0.8% of the firm’s portfolio, while institutional investors collectively own 71.13% of the stock.
• Microsoft reported quarterly revenue of $90.01 billion and earnings of $4.74 per share, beating analyst expectations, with revenue up 17.7% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $578.73.
• Shares opened at $535.07 with a market capitalization near $3.97 trillion, but insiders sold 143,009 shares worth $71.4 million over the past quarter. Key risks include uncertainty around the company’s green-card sponsorship program and an antitrust investigation into Microsoft-owned gaming companies.

OV Management LLC bought a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 1,157 shares of the software giant's stock, valued at approximately $432,000. Microsoft makes up approximately 0.8% of OV Management LLC's investment portfolio, making the stock its 9th largest position.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Planning Directions Inc. bought a new stake in Microsoft during the second quarter valued at approximately $1,205,000. AssuredPartners Investment Advisors LLC bought a new position in shares of Microsoft in the 2nd quarter worth $16,637,000. Shepherd Financial Partners LLC bought a new position in shares of Microsoft in the 2nd quarter worth $14,840,000. Myecfo LLC purchased a new stake in shares of Microsoft during the 2nd quarter valued at $485,000. Finally, Johnson Financial Group Inc. purchased a new stake in shares of Microsoft during the 2nd quarter valued at $36,046,000. Institutional investors own 71.13% of the company's stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Insider Buying and Selling

In other news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was 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 of the company's stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Amy Hood sold 41,674 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. This represents a 7.24% 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. Insiders sold 143,009 shares of company stock valued at $71,420,699 over the last quarter. Company insiders own 0.03% of the company's stock.

Microsoft Price Performance

MSFT opened at $535.07 on Monday. The company has a market cap of $3.97 trillion, a P/E ratio of 29.79, a P/E/G ratio of 1.72 and a beta of 1.10. The business's 50-day moving average price is $501.15 and its 200-day moving average price is $435.10. 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 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 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. Microsoft's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.65 EPS. On average, equities analysts expect that Microsoft Corporation will post 19.65 EPS for the current 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 paid a $0.98 dividend. This is an increase from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. Microsoft's payout ratio is presently 20.27%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. UBS Group downgraded shares of Microsoft from a "buy" rating to a "market perform" rating in a report on Monday, October 5th. Truist Financial restated a "buy" rating and set a $575.00 price target on shares of Microsoft in a research report on Wednesday, July 22nd. BMO Capital Markets started coverage on Microsoft in a research note on Monday, October 5th. They set an "outperform" rating for the company. JPMorgan Chase & Co. reiterated a "buy" rating on shares of Microsoft in a report on Monday, September 28th. Finally, Citizens Jmp reiterated a "market outperform" rating and set a $550.00 price objective on shares of Microsoft in a research report on Tuesday, September 15th. Forty-two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $578.73.

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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.