Seros Financial LLC Makes New $733,000 Investment in Microsoft Corporation $MSFT

Key Points

• Seros Financial LLC purchased 1,966 Microsoft shares worth approximately $733,000 in the second quarter, making MSFT about 0.4% of its portfolio. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft’s latest quarter exceeded expectations, with $4.74 in EPS and $90.01 billion in revenue, up 17.7% year over year. Analysts maintain a “Moderate Buy” consensus, with an average price target of $589.71.
• Microsoft raised its quarterly dividend to $0.98, while investors weigh strong AI and Azure expansion against rising infrastructure costs and potential regulatory action in the U.K.

Seros Financial LLC purchased a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 1,966 shares of the software giant's stock, valued at approximately $733,000. Microsoft makes up about 0.4% of Seros Financial LLC's investment portfolio, making the stock its 25th largest position.

Other institutional investors have also recently bought and sold shares of the company. Frankly Finances LLC acquired a new position in shares of Microsoft during the second quarter worth approximately $35,000. Bard Associates Inc. bought a new stake in shares of Microsoft during the second quarter valued at approximately $37,000. Fiduciary Advisors Inc. grew its stake in shares of Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after purchasing an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new stake in shares of Microsoft in the second quarter valued at approximately $60,000. Finally, Lifetime Wealth Management P.C. acquired a new stake in shares of Microsoft in the fourth quarter valued at approximately $101,000. Institutional investors own 71.13% of the company's stock.

Trending Headlines about Microsoft

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.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on MSFT. Scotiabank boosted their price objective on shares of Microsoft from $510.00 to $615.00 and gave the stock an "outperform" rating in a research report on Monday, October 5th. Sanford C. Bernstein set a $660.00 price objective on Microsoft in a research report on Monday, August 10th. BMO Capital Markets initiated coverage on Microsoft in a research report on Monday, October 5th. They issued an "outperform" rating on the stock. Benchmark reissued a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Finally, TD Cowen boosted their target price on Microsoft from $540.00 to $625.00 and gave the stock a "buy" rating in a research report on Thursday. Forty-two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $589.71.

Microsoft Stock Down 1.9%

Shares of NASDAQ MSFT opened at $529.05 on Friday. The firm has a market capitalization of $3.93 trillion, a PE ratio of 29.46, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm's 50-day moving average is $505.53 and its 200-day moving average is $440.59.

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. The company had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft's revenue was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.65 EPS. Equities analysts expect that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This is a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. Microsoft's payout ratio is 20.27%.

Insider Buying and Selling at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 150,314 shares of company stock valued at $75,404,992 in the last three months. Insiders own 0.03% of the company's stock.

Microsoft Company Profile

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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