Satovsky Asset Management LLC Makes New Investment in Microsoft Corporation $MSFT

Key Points

• Satovsky Asset Management acquired 9,738 Microsoft shares worth approximately $3.63 million in the second quarter, making Microsoft its 12th-largest holding. Institutional investors and hedge funds collectively own 71.13% of the stock.
• 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 “Moderate Buy” consensus with an average price target of $589.71.
• Microsoft raised its quarterly dividend to $0.98 from $0.91, while investors weigh continued AI spending, data-center power commitments and regulatory scrutiny against the potential benefits of custom AI chips and Azure growth.

Satovsky Asset Management LLC bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 9,738 shares of the software giant's stock, valued at approximately $3,632,000. Microsoft comprises about 0.6% of Satovsky Asset Management LLC's investment portfolio, making the stock its 12th largest holding.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Frankly Finances LLC bought a new stake in shares of Microsoft during the 2nd quarter valued at about $35,000. Bard Associates Inc. acquired a new stake in Microsoft during the second quarter worth about $37,000. Fiduciary Advisors Inc. raised its stake in Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after acquiring an additional 34 shares during the period. Persistent Asset Partners Ltd bought a new position in Microsoft in the second quarter worth about $60,000. Finally, Conquis Financial LLC bought a new position in Microsoft in the second quarter worth about $60,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Key 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 Stock Down 1.9%

Microsoft stock opened at $529.05 on Friday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a 50-day simple moving average of $505.53 and a 200-day simple moving average of $440.59. The firm has a market capitalization 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 (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the firm posted $3.65 EPS. As a group, equities analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders 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%.

Analysts Set New Price Targets

MSFT has been the subject of a number of research reports. Jefferies Financial Group lifted their target price on Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $600.00 target price on shares of Microsoft in a report on Monday, October 12th. CLSA reiterated an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Barclays raised their price target on Microsoft from $512.00 to $600.00 and gave the stock an "overweight" rating in a report on Tuesday. Finally, BNP Paribas Exane downgraded Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Forty-two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $589.71.

Insider Activity

In other news, EVP Amy Hood sold 41,674 shares of Microsoft 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 sale, the executive vice president owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. 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 have sold a total of 150,314 shares of company stock worth $75,404,992 in the last quarter. Company insiders own 0.03% of the company's stock.

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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