Strathmore Capital Advisors Inc. Makes New $2.58 Million Investment in Microsoft Corporation $MSFT

Key Points

• Strathmore Capital Advisors acquired 6,477 Microsoft shares worth approximately $2.58 million, making Microsoft its eighth-largest holding and about 0.7% of its portfolio. Institutional investors collectively own 71.13% of the company.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, exceeding analyst expectations, while revenue increased 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $578.73, though recent insider selling and regulatory and hiring-related risks remain potential concerns.

Strathmore Capital Advisors Inc. acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 6,477 shares of the software giant's stock, valued at approximately $2,576,000. Microsoft comprises approximately 0.7% of Strathmore Capital Advisors Inc.'s investment portfolio, making the stock its 8th biggest holding.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Auto Owners Insurance Co increased its position in Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock worth $29,073,486,000 after buying an additional 60,009,531 shares during the period. Corient Private Wealth LLC lifted its stake in Microsoft by 234.5% in the fourth quarter. Corient Private Wealth LLC now owns 17,822,280 shares of the software giant's stock valued at $8,619,211,000 after buying an additional 12,493,786 shares during the last quarter. Amundi boosted its holdings in shares of Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock valued at $15,426,862,000 after acquiring an additional 9,814,598 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock valued at $8,982,083,000 after acquiring an additional 9,493,778 shares during the period. Finally, Diamant Asset Management Inc. grew its position in shares of Microsoft by 38,442.1% during the first quarter. Diamant Asset Management Inc. now owns 6,810,388 shares of the software giant's stock worth $2,521,001,000 after acquiring an additional 6,792,718 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $535.07 on Monday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The stock has a fifty day moving average price of $501.15 and a 200 day moving average price of $435.10. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a market cap of $3.97 trillion, a PE ratio of 29.79, a P/E/G ratio of 1.72 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for 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% compared to the same quarter last year. During the same period in the previous year, the company posted $3.65 EPS. Sell-side analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is a boost 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 dividend yield of 0.7%. Microsoft's dividend payout ratio (DPR) is 20.27%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Insider Activity

In related news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction dated 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 of the company's stock, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 143,009 shares of company stock worth $71,420,699 in the last ninety days. 0.03% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on MSFT shares. UBS Group cut shares of Microsoft from a "buy" rating to a "market perform" rating in a report on Monday, October 5th. Evercore upgraded shares of Microsoft from an "underperform" rating to an "outperform" rating in a research report on Monday, October 5th. KeyCorp reiterated an "overweight" rating on shares of Microsoft in a research note on Thursday, September 3rd. Citigroup raised shares of Microsoft from a "market outperform" rating to a "buy" rating in a research report on Monday, October 5th. Finally, BNP Paribas Exane downgraded shares of Microsoft from a "strong-buy" rating to a "hold" rating in a research 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 given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $578.73.

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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