Payne Capital LLC Purchases New Holdings in Microsoft Corporation $MSFT

Key Points

• Payne Capital LLC bought a new stake of 15,876 shares of Microsoft in Q3 valued at about $8.22 million, making MSFT roughly 8.3% of its portfolio and the firm's largest holding.
• Microsoft topped quarterly expectations with EPS $4.14 (vs. $3.86) and revenue of $81.27 billion (up 16.7% YoY), sits at a ~ $3.01 trillion market cap, and carries a consensus analyst target around $591.95.
• Analysts see a durable AI capex tailwind supporting Azure and cloud AI monetization, but valuation concerns, recent downgrades and competitive/regulatory risks (e.g., OpenAI moves, Outlook email issues) are fueling short‑term skepticism.

Payne Capital LLC bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 15,876 shares of the software giant's stock, valued at approximately $8,223,000. Microsoft accounts for approximately 8.3% of Payne Capital LLC's portfolio, making the stock its biggest holding.

A number of other hedge funds also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC boosted its position in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Bayforest Capital Ltd acquired a new position in shares of Microsoft during the 3rd quarter worth $38,000. Sellwood Investment Partners LLC acquired a new position in shares of Microsoft during the 3rd quarter worth $49,000. University of Illinois Foundation bought a new stake in shares of Microsoft during the 2nd quarter worth $50,000. Finally, LSV Asset Management bought a new position in Microsoft in the fourth quarter valued at about $44,000. Institutional investors own 71.13% of the company's stock.

Microsoft Stock Performance

NASDAQ:MSFT opened at $405.20 on Thursday. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09. Microsoft Corporation has a twelve month low of $344.79 and a twelve month high of $555.45. The company has a fifty day moving average of $438.52 and a 200-day moving average of $481.02. The firm has a market capitalization of $3.01 trillion, a P/E ratio of 25.34, a P/E/G ratio of 1.58 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, topping analysts' consensus estimates of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The business had revenue of $81.27 billion during the quarter, compared to analysts' expectations of $80.28 billion. During the same period last year, the company posted $3.23 earnings per share. The business's quarterly revenue was up 16.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Microsoft Corporation will post 13.08 EPS for the current year.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Broadcom’s strong revenue outlook and commentary that AI semiconductor demand is accelerating reinforces the view that hyperscalers (including Microsoft) will keep investing heavily in data centers — a direct tailwind for Azure and MSFT’s cloud AI monetization. Broadcom sees revenue above estimates as AI fuels custom chip demand
• Positive Sentiment: Industry analysis pointing to a ~$650B AI capex cycle (chips, servers, networking) supports durable demand for Microsoft’s cloud, AI services, and enterprise partnerships — a structural revenue driver. The $650 Billion AI Surge Is Here—2 Semiconductor ETFs to Play It
• Positive Sentiment: Big Tech’s White House pledge to fund new power generation/infrastructure for AI data centers reduces regulatory/political risk and potential utility bill backlash for operators like Microsoft, easing a possible operational headwind. Tech Bosses Tell Trump They’ll Pay Up for Electricity
• Neutral Sentiment: Executive reshuffle at Microsoft Gaming (Asha Sharma named CEO) focuses integration and growth post‑Acquisition; strategic but longer‑dated for material revenue effects. Microsoft Gaming Leadership Reset Puts Integration And Growth In Focus
• Neutral Sentiment: CEO Satya Nadella’s public comments acknowledging AI‑driven job displacement underline Microsoft’s narrative that AI is transformative — useful for strategic positioning but neutral for immediate cash flow. Satya Nadella Says AI Will Displace Workers—'Best Protection...Transform Yourself'
• Negative Sentiment: Valuation and AI profitability concerns resurfaced after recent share‑price pullbacks; analysts and investors are reassessing whether current multiples properly reflect execution risk and long‑term AI margins. Assessing Microsoft (MSFT) Valuation After Recent Share Price Pullback And AI Profitability Questions
• Negative Sentiment: Broker downgrades (Melius Research, Stifel) to Hold and public commentator concern (Jim Cramer) add selling pressure and reinforce short‑term skepticism. Melius Research and Stifel Downgrade Microsoft Corporation (MSFT) to Hold
• Negative Sentiment: Reputational/operational risk after reports of widespread Outlook email blocking drew user ire — this can draw regulatory scrutiny or customer friction if persistent. Microsoft Draws Internet Ire Over Wave of Email Blocking
• Negative Sentiment: Reports that OpenAI is developing a GitHub alternative highlight competitive risk in developer tools — a potential threat to parts of Microsoft’s developer ecosystem over time. OpenAI is developing alternative to Microsoft's GitHub, The Information reports

Insiders Place Their Bets

In other news, Director John W. Stanton purchased 5,000 shares of the company's stock in a transaction that occurred on Wednesday, February 18th. The shares were acquired at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the purchase, the director owned 83,905 shares in the company, valued at $33,339,651.75. This represents a 6.34% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.03% of the company's stock.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Scotiabank lowered their price objective on shares of Microsoft from $650.00 to $600.00 and set a "sector outperform" rating for the company in a research report on Thursday, January 29th. HSBC cut their price objective on Microsoft from $667.00 to $588.00 and set a "buy" rating on the stock in a report on Thursday, January 29th. Sanford C. Bernstein restated an "outperform" rating and set a $641.00 price target (down from $645.00) on shares of Microsoft in a report on Thursday, January 29th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $590.00 price objective on shares of Microsoft in a report on Thursday, January 29th. Finally, Citigroup cut their target price on shares of Microsoft from $660.00 to $635.00 and set a "buy" rating on the stock in a research report on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus target price of $591.95.

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).

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