Smith Asset Management Co. LLC Purchases 2,366 Shares of Microsoft Corporation $MSFT

Key Points

• Smith Asset Management increased its Microsoft position by 87.6% in the second quarter, purchasing 2,366 shares and ending with 5,066 shares valued at approximately $1.89 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with adjusted EPS of $4.74 and revenue of $90.01 billion, exceeding analyst estimates and reflecting 17.7% year-over-year revenue growth. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $562.49.
• Microsoft insiders sold shares totaling about $10.1 million over the past 90 days, while the company declared a quarterly dividend of $0.91 per share. Investors are also monitoring the company’s substantial AI infrastructure spending, which could support growth but pressure margins and returns.

Smith Asset Management Co. LLC grew its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 87.6% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 5,066 shares of the software giant's stock after buying an additional 2,366 shares during the quarter. Microsoft accounts for 1.5% of Smith Asset Management Co. LLC's holdings, making the stock its 25th largest holding. Smith Asset Management Co. LLC's holdings in Microsoft were worth $1,890,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in MSFT. Sompo Asset Management Co. Ltd. increased its stake in shares of Microsoft by 1.9% during the second quarter. Sompo Asset Management Co. Ltd. now owns 55,868 shares of the software giant's stock valued at $20,840,000 after buying an additional 1,033 shares during the period. Brown Shipley& Co Ltd lifted its stake in Microsoft by 0.6% in the second quarter. Brown Shipley& Co Ltd now owns 54,796 shares of the software giant's stock worth $20,440,000 after acquiring an additional 340 shares during the period. Cox Capital Mgt LLC lifted its stake in Microsoft by 13.4% in the second quarter. Cox Capital Mgt LLC now owns 22,610 shares of the software giant's stock worth $8,434,000 after acquiring an additional 2,669 shares during the period. Advisory Resource Group grew its holdings in Microsoft by 86.3% during the 2nd quarter. Advisory Resource Group now owns 8,667 shares of the software giant's stock worth $3,233,000 after acquiring an additional 4,014 shares in the last quarter. Finally, Keb Asset Management LLC grew its holdings in Microsoft by 1.7% during the 2nd quarter. Keb Asset Management LLC now owns 3,297 shares of the software giant's stock worth $1,230,000 after acquiring an additional 56 shares in the last quarter. Institutional investors own 71.13% of the company's stock.

Insiders Place Their Bets

In related news, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 21,810 shares of company stock worth $10,110,874. Insiders own 0.03% of the company's stock.

Microsoft Stock Down 1.2%

NASDAQ:MSFT opened at $501.02 on Wednesday. The company's 50-day simple moving average is $436.21 and its 200-day simple moving average is $413.78. 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 fifty-two week low of $349.20 and a fifty-two week high of $553.72. The stock has a market capitalization of $3.72 trillion, a P/E ratio of 27.90, a P/E/G ratio of 1.63 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data 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 net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the previous year, the business posted $3.65 EPS. Microsoft's revenue was up 17.7% on a year-over-year basis. On average, equities analysts anticipate that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's dividend payout ratio is presently 20.27%.

Analyst Ratings Changes

Several equities research analysts have recently commented on MSFT shares. Cantor Fitzgerald boosted their price target on shares of Microsoft from $502.00 to $522.00 and gave the company an "overweight" rating in a report on Monday, July 27th. Dbs Bank dropped their price objective on shares of Microsoft from $678.00 to $573.00 in a research note on Thursday, May 7th. Wedbush reissued an "outperform" rating and set a $575.00 price objective on shares of Microsoft in a report on Wednesday, May 13th. Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a research note on Thursday, July 30th. Finally, Stifel Nicolaus upped their target price on Microsoft from $400.00 to $450.00 and gave the stock a "hold" rating in a report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $562.49.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bank of America raised its price target to $600 from $500 and maintained a Buy rating. The bank cited accelerating cloud growth, improving AI efficiency and better visibility into returns on investment. Its thesis includes approximately 43% Azure growth and more than 30 million paid Copilot seats, implying substantial upside. Microsoft's AI strategy accelerates cloud growth and efficiency: analysts
• Positive Sentiment: Microsoft expanded its HUMAIN partnership in the Middle East and Africa. The companies plan to combine HUMAIN ONE with Microsoft 365 Copilot and IQ capabilities for as many as one million enterprise users, while also bringing Arabic-language AI models to Microsoft’s ecosystem. The deal supports Microsoft’s international AI distribution and enterprise monetization strategy. Microsoft extends HUMAIN tie up
• Positive Sentiment: Analysts and financial media continue to view Microsoft as a leading hyperscaler, citing Azure demand, Copilot adoption, strong cash generation and a valuation that remains reasonable relative to its growth prospects. Technical coverage also places MSFT in or near a potential buy zone after its recent rally. Why Microsoft's stock could rally another 20%
• Neutral Sentiment: Microsoft customers can now deploy Laurel through the Microsoft Marketplace, adding another application to the company’s enterprise distribution ecosystem, though the immediate financial effect was not disclosed. Laurel Now Available in the Microsoft Marketplace
• Negative Sentiment: Microsoft 365 and Outlook outages persisted into a second day. Although service appeared to be improving, prolonged disruptions could frustrate enterprise customers and raise questions about reliability. Microsoft 365 outage drags on
• Negative Sentiment: Investors remain focused on Microsoft’s approximately $116 billion in fiscal 2026 property and equipment spending. Continued AI infrastructure investment may support long-term growth but could pressure depreciation, margins and returns if demand fails to keep pace. Rising interest rates and Windows 11 update problems add further near-term risk.

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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