Scarborough Advisors LLC Makes New $8.30 Million Investment in Microsoft Corporation $MSFT

Key Points

• Scarborough Advisors LLC bought 22,435 Microsoft shares worth approximately $8.30 million in the first quarter. Institutional investors collectively own 71.13% of Microsoft’s outstanding stock.
• Microsoft reported a strong quarter, with EPS of $4.74 and revenue of $90.01 billion, exceeding analyst estimates; revenue rose 17.7% year over year, supported by cloud growth.
• Analysts maintain a bullish outlook, with 42 Buy ratings and a consensus “Moderate Buy” rating, although insiders sold roughly $10.5 million of stock over the past 90 days. Microsoft also declared a quarterly dividend of $0.91 per share.

Scarborough Advisors LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 22,435 shares of the software giant's stock, valued at approximately $8,305,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after purchasing an additional 20 shares in the last quarter. Bernzott Capital Advisors acquired a new stake in shares of Microsoft in the fourth quarter valued at $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft during the 4th quarter valued at about $36,000. Fairway Wealth LLC boosted its holdings in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after buying an additional 66 shares in the last quarter. Finally, University of Illinois Foundation bought a new stake in shares of Microsoft during the 2nd quarter worth $50,000. 71.13% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction dated 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 in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 23,762 shares of company stock worth $10,508,361 in the last ninety days. Insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

MSFT has been the subject of several recent analyst reports. Sanford C. Bernstein raised their target price on shares of Microsoft from $646.00 to $647.00 and gave the stock an "outperform" rating in a report on Thursday, July 30th. Piper Sandler boosted their price target on shares of Microsoft from $540.00 to $550.00 and gave the company an "overweight" rating in a report on Tuesday, July 28th. Evercore set a $528.00 price target on shares of Microsoft in a research report on Thursday, July 30th. China Renaissance decreased their price objective on shares of Microsoft from $630.00 to $550.00 and set a "buy" rating for the company in a research note on Monday, May 4th. Finally, Cantor Fitzgerald lifted their price objective on shares of Microsoft from $502.00 to $522.00 and gave the stock an "overweight" rating in a research report on Monday, July 27th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and an average price target of $558.64.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops
• Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings
• Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List
• Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.”
• Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push
• Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction.
• Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech

Microsoft Price Performance

Shares of NASDAQ:MSFT opened at $492.81 on Wednesday. The company has a market cap of $3.66 trillion, a price-to-earnings ratio of 27.44, a PEG ratio of 1.57 and a beta of 1.11. The business has a 50 day moving average price of $400.91 and a 200 day moving average price of $405.81. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the previous year, the business posted $3.65 EPS. The company's revenue for the quarter was up 17.7% on a year-over-year basis. Research analysts predict that Microsoft Corporation will post 19.56 earnings per share for the current year.

Microsoft Announces Dividend

The business 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 $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft's dividend payout ratio is 20.27%.

Microsoft Profile

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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