Prescott Group Capital Management L.L.C. Has $1.95 Million Holdings in Microsoft Corporation $MSFT

Key Points

• Prescott Group Capital Management increased its stake in Microsoft Corporation by 15.6%, purchasing an additional 701 shares to hold a total of 5,201 shares, valued at approximately $1.95 million.
• Multiple analysts have raised their price targets for Microsoft, with Mizuho setting a new target of $625.00 and the consensus price target now at $612.54, signaling a strong positive outlook for the stock.
• Microsoft reported earnings of $3.65 per share for the latest quarter, exceeding analyst expectations, with revenues of $76.44 billion, reflecting an 18.1% year-over-year growth.

Prescott Group Capital Management L.L.C. lifted its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 15.6% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 5,201 shares of the software giant's stock after acquiring an additional 701 shares during the quarter. Prescott Group Capital Management L.L.C.'s holdings in Microsoft were worth $1,952,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in the company. Fosun International Ltd increased its position in shares of Microsoft by 0.3% during the 1st quarter. Fosun International Ltd now owns 6,633 shares of the software giant's stock worth $2,490,000 after purchasing an additional 23 shares in the last quarter. Alliance Wealth Management Group increased its position in shares of Microsoft by 0.4% during the 4th quarter. Alliance Wealth Management Group now owns 5,617 shares of the software giant's stock worth $2,368,000 after purchasing an additional 25 shares in the last quarter. Guidance Point Advisors LLC increased its position in shares of Microsoft by 0.6% during the 4th quarter. Guidance Point Advisors LLC now owns 4,294 shares of the software giant's stock worth $1,811,000 after purchasing an additional 25 shares in the last quarter. Orin Green Financial LLC increased its position in shares of Microsoft by 1.2% during the 1st quarter. Orin Green Financial LLC now owns 2,136 shares of the software giant's stock worth $767,000 after purchasing an additional 25 shares in the last quarter. Finally, Life Planning Partners Inc increased its position in Microsoft by 5.1% in the 4th quarter. Life Planning Partners Inc now owns 540 shares of the software giant's stock valued at $228,000 after acquiring an additional 26 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Insider Activity at Microsoft

In other news, EVP Takeshi Numoto sold 4,850 shares of Microsoft stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $527.32, for a total value of $2,557,502.00. Following the sale, the executive vice president directly owned 39,111 shares in the company, valued at $20,624,012.52. This trade represents a 11.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Satya Nadella sold 149,205 shares of Microsoft stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $504.78, for a total transaction of $75,315,699.90. Following the completion of the sale, the chief executive officer owned 790,852 shares in the company, valued at $399,206,272.56. This trade represents a 15.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.03% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

MSFT has been the subject of several research reports. BMO Capital Markets raised their price objective on shares of Microsoft from $550.00 to $650.00 and gave the company an "outperform" rating in a research report on Thursday, July 31st. Mizuho raised their price objective on shares of Microsoft from $540.00 to $625.00 and gave the company an "outperform" rating in a research report on Thursday, July 31st. Wells Fargo & Company restated an "overweight" rating and issued a $650.00 price objective (up previously from $600.00) on shares of Microsoft in a research report on Thursday, July 31st. Bank of America raised their price objective on shares of Microsoft from $585.00 to $640.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Morgan Stanley raised their price objective on shares of Microsoft from $530.00 to $582.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Microsoft has an average rating of "Moderate Buy" and an average target price of $612.54.

Microsoft Trading Down 2.6%

Shares of NASDAQ:MSFT traded down $12.97 during trading on Friday, hitting $495.00. 31,963,969 shares of the company's stock were exchanged, compared to its average volume of 22,259,959. Microsoft Corporation has a 1-year low of $344.79 and a 1-year high of $555.45. The firm has a 50-day moving average price of $509.95 and a two-hundred day moving average price of $450.01. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.12. The firm has a market cap of $3.68 trillion, a P/E ratio of 36.29, a PEG ratio of 2.21 and a beta of 1.04.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The software giant reported $3.65 EPS for the quarter, topping the consensus estimate of $3.35 by $0.30. Microsoft had a net margin of 36.15% and a return on equity of 32.44%. The company had revenue of $76.44 billion during the quarter, compared to analysts' expectations of $73.79 billion. During the same quarter in the previous year, the company earned $2.95 EPS. Microsoft's revenue was up 18.1% on a year-over-year basis. Microsoft has set its Q1 2026 guidance at EPS. Equities analysts predict that Microsoft Corporation will post 13.08 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be paid a dividend of $0.83 per share. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $3.32 annualized dividend and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is presently 24.34%.

Microsoft Company Profile

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.