Stordahl Capital Management Inc. Raises Stake in Microsoft Corporation $MSFT

Key Points

• Stordahl Capital Management increased its Microsoft stake by 76.4% in the second quarter to 6,676 shares valued at approximately $2.49 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and earnings of $4.74 per share, exceeding analyst expectations. Analysts maintain a broadly positive view, with 42 Buy ratings, five Holds and an average price target of $562.49.
• Investors are weighing Microsoft’s AI and cloud growth prospects against risks including roughly $116 billion in planned fiscal 2026 capital spending, recent Microsoft 365 and Outlook outages, and insider selling totaling 21,810 shares last quarter.

Stordahl Capital Management Inc. raised its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 76.4% during the second quarter, according to its most recent filing with the SEC. The firm owned 6,676 shares of the software giant's stock after purchasing an additional 2,891 shares during the period. Microsoft accounts for about 0.5% of Stordahl Capital Management Inc.'s portfolio, making the stock its 9th largest position. Stordahl Capital Management Inc.'s holdings in Microsoft were worth $2,490,000 as of its most recent SEC filing.

Several other large investors have also modified their holdings of MSFT. Longfellow Investment Management Co. LLC boosted its position 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 acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors purchased a new position in shares of Microsoft in the 4th quarter valued at $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft in the 4th quarter worth $36,000. Fairway Wealth LLC raised its position in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after acquiring an additional 66 shares in the last quarter. Finally, Frankly Finances LLC purchased a new stake in shares of Microsoft during the 2nd quarter worth $35,000. Institutional investors own 71.13% of the company's stock.

Microsoft News Summary

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.

Insider Buying and Selling

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 21,810 shares of company stock valued at $10,110,874 over the last quarter. 0.03% of the stock is owned by company insiders.

Microsoft Trading Down 1.2%

Shares of NASDAQ:MSFT opened at $501.02 on Wednesday. The business's 50-day moving average is $436.21 and its 200 day moving average is $413.78. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm 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. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share 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 business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter last year, the company earned $3.65 earnings per share. The company's quarterly revenue was up 17.7% on a year-over-year basis. On average, research analysts predict that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date 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 (DPR) is 20.27%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on MSFT. Mizuho dropped their price objective on Microsoft from $515.00 to $490.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 15th. Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a research report on Thursday, July 30th. Tigress Financial raised their price target on shares of Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Oppenheimer reaffirmed an "outperform" rating and issued a $515.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. Finally, Truist Financial reiterated a "buy" rating and set a $575.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $562.49.

About Microsoft

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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