Paul R. Ried Financial Group LLC Has $19.42 Million Stake in Microsoft Corporation $MSFT

Key Points

• Paul R. Ried Financial Group reduced its Microsoft holdings by 6.2% in the second quarter, selling 3,447 shares and retaining 52,068 shares valued at approximately $19.42 million.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, exceeding analyst expectations. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $560.27.
• Investor sentiment is supported by Microsoft’s substantial Azure backlog and AI initiatives, though concerns remain about heavy AI infrastructure spending, potential regulatory and geopolitical headwinds, and recent insider share sales.

Paul R. Ried Financial Group LLC lessened its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.2% during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 52,068 shares of the software giant's stock after selling 3,447 shares during the quarter. Microsoft accounts for approximately 8.5% of Paul R. Ried Financial Group LLC's investment portfolio, making the stock its 5th biggest position. Paul R. Ried Financial Group LLC's holdings in Microsoft were worth $19,422,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. grew its stake in shares of Microsoft by 2.3% during the fourth quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant's stock worth $347,211,391,000 after buying an additional 15,955,898 shares during the last quarter. State Street Corp lifted its stake in shares of Microsoft by 2.1% in the 4th quarter. State Street Corp now owns 306,150,608 shares of the software giant's stock valued at $148,060,557,000 after acquiring an additional 6,388,930 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Microsoft by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant's stock valued at $88,056,019,000 after acquiring an additional 1,911,142 shares in the last quarter. Morgan Stanley boosted its holdings in shares of Microsoft by 0.8% during the 4th quarter. Morgan Stanley now owns 121,220,561 shares of the software giant's stock valued at $58,624,690,000 after acquiring an additional 980,439 shares in the last quarter. Finally, Norges Bank bought a new stake in Microsoft during the 4th quarter worth $50,664,631,000. Institutional investors own 71.13% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Morgan Stanley identified a bullish technical signal across several megacap technology stocks, including Microsoft, potentially supporting further gains as institutional positioning improves. A Bullish Signal Could Point to Gains Ahead for These Big Tech Stocks
• Positive Sentiment: Microsoft’s roughly $678 billion Azure backlog gives investors greater visibility into future cloud and AI revenue, helping counter fears that hyperscalers may struggle to earn adequate returns on AI infrastructure spending. Microsoft Stock Rises as $678 Billion Backlog Supports AI Spending
• Positive Sentiment: Microsoft’s internally developed AI chips are reported to deliver efficiency gains of up to 40% versus reliance on OpenAI-related infrastructure. Greater use of its own technology could improve capacity, margins and control over the AI stack. Microsoft’s Own AI Chips Are Driving Efficiency Gains
• Positive Sentiment: Analysts and investors continue to highlight Azure’s more-than-$100 billion annual revenue milestone, accelerating Microsoft 365 Copilot adoption and Microsoft’s ability to monetize AI through its broad enterprise software base.
• Positive Sentiment: New Azure and Microsoft Marketplace integrations, including Dirac’s AI process-planning platform and other enterprise applications, reinforce demand for Microsoft’s cloud ecosystem. An investment manager also maintained exposure to Microsoft, while Altarock Partners increased its stake. Dirac Brings AI-Driven Process Planning to Microsoft Azure
• Neutral Sentiment: Microsoft is changing its AI data-center policy by reducing nondisclosure requirements and emphasizing community engagement. The approach may ease regulatory and local opposition, but could increase transparency and complicate facility expansion.
• Negative Sentiment: Investors remain concerned that heavy AI capital expenditures may outpace revenue and cash-flow returns. A separate comparison argued Oracle currently offers stronger AI backlog growth and valuation, potentially making Microsoft less attractive to some buyers.
• Negative Sentiment: Beijing is reportedly accelerating the replacement of Microsoft Windows in Chinese government systems, creating a geopolitical and regional-sales headwind. The departure of Microsoft AI’s chief marketing officer also introduces some execution uncertainty around consumer AI adoption.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Wells Fargo & Company increased their target price on Microsoft from $650.00 to $700.00 and gave the company an "overweight" rating in a research report on Wednesday, August 12th. Wolfe Research reaffirmed an "outperform" rating and issued a $550.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Argus dropped their price objective on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a report on Friday, July 10th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Microsoft in a research report on Monday, July 20th. Finally, Barclays reduced their target price on shares of Microsoft from $545.00 to $512.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $560.27.

Microsoft Stock Up 0.6%

Microsoft stock opened at $484.31 on Thursday. The firm has a market cap of $3.60 trillion, a price-to-earnings ratio of 26.97, a PEG ratio of 1.55 and a beta of 1.11. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The firm has a 50 day moving average price of $415.95 and a two-hundred day moving average price of $408.42.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. During the same period in the prior year, the company posted $3.65 earnings per share. Microsoft's revenue for the quarter was up 17.7% compared to the same quarter last year. Equities analysts predict that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Thursday, August 20th. Microsoft's dividend payout ratio (DPR) is presently 20.27%.

Insider Activity

In related news, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the sale, the chief executive officer directly owned 110,477 shares of the company's stock, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 37,310 shares of company stock valued at $17,256,219. Corporate insiders own 0.03% of the company's stock.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, 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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source