Texas Capital Bank Wealth Management Services Inc Grows Stake in Microsoft Corporation $MSFT

Key Points

• Texas Capital Bank Wealth Management increased its Microsoft stake by 2.8% to 63,007 shares valued at $23.5 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft’s AI growth outlook remains a major focus, supported by Azure momentum, Copilot demand and its Nvidia partnership; analysts maintain a broadly positive view, with a “Moderate Buy” consensus and average price target of $578.73.
• Potential headwinds include heavy AI infrastructure spending, valuation concerns, labor-program restrictions and an antitrust probe involving gaming operations. Microsoft also raised its quarterly dividend to $0.98 per share, while executives sold shares under disclosed transactions.

Texas Capital Bank Wealth Management Services Inc boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.8% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 63,007 shares of the software giant's stock after purchasing an additional 1,691 shares during the period. Microsoft accounts for about 1.3% of Texas Capital Bank Wealth Management Services Inc's investment portfolio, making the stock its 11th biggest holding. Texas Capital Bank Wealth Management Services Inc's holdings in Microsoft were worth $23,503,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of MSFT. Auto Owners Insurance Co grew its stake in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock valued at $29,073,486,000 after buying an additional 60,009,531 shares in the last quarter. Corient Private Wealth LLC raised its position in Microsoft by 234.5% during the fourth quarter. Corient Private Wealth LLC now owns 17,822,280 shares of the software giant's stock worth $8,619,211,000 after acquiring an additional 12,493,786 shares in the last quarter. Amundi raised its position in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in 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 last quarter. Finally, Diamant Asset Management Inc. grew its position in shares of Microsoft by 38,442.1% in the 1st quarter. Diamant Asset Management Inc. now owns 6,810,388 shares of the software giant's stock valued at $2,521,001,000 after acquiring an additional 6,792,718 shares during the period. 71.13% of the stock is currently owned by institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership?
• Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating
• Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date
• Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program
• Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies

Insider Transactions at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction dated 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 transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Amy Hood sold 41,674 shares of the firm's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 143,009 shares of company stock worth $71,420,699 over the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on MSFT shares. William Blair initiated coverage on shares of Microsoft in a research note on Monday. They set an "outperform" rating on the stock. Evercore upgraded Microsoft from an "underperform" rating to an "outperform" rating in a report on Monday. Piper Sandler boosted their price target on Microsoft from $550.00 to $610.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 30th. CLSA reissued an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Finally, Argus dropped their price objective on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Forty-one investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $578.73.

Microsoft Trading Down 1.3%

Shares of NASDAQ:MSFT opened at $522.61 on Friday. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The business has a 50 day moving average of $499.74 and a 200-day moving average of $434.03. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.88 trillion, a PE ratio of 29.10, a P/E/G ratio of 1.70 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the company earned $3.65 earnings per share. As a group, equities research analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is 20.27%.

Microsoft Company Profile

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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