Torray Investment Partners LLC Acquires 43,772 Shares of Microsoft Corporation $MSFT

Key Points

• Torray Investment Partners boosted its Microsoft stake by 128.9% in the first quarter, buying 43,772 additional shares and bringing its total to 77,732 shares worth about $28.8 million.
• Wall Street remains broadly optimistic on Microsoft, with 42 Buy ratings and six Hold ratings, giving the stock a consensus Moderate Buy rating and an average price target of $555.40.
• Microsoft continues to show strong fundamentals: it recently beat earnings and revenue estimates, reported 18.3% year-over-year revenue growth, and announced a quarterly dividend of $0.91 per share payable on September 10.

Torray Investment Partners LLC increased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 128.9% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 77,732 shares of the software giant's stock after purchasing an additional 43,772 shares during the period. Microsoft makes up approximately 4.2% of Torray Investment Partners LLC's holdings, making the stock its 3rd largest position. Torray Investment Partners LLC's holdings in Microsoft were worth $28,774,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in the business. Longfellow Investment Management Co. LLC grew its stake in shares of Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares during the last quarter. Bernzott Capital Advisors acquired a new position in Microsoft during the 4th quarter valued at $34,000. Timmons Wealth Management LLC bought a new stake in Microsoft in the 4th quarter valued at $36,000. Fairway Wealth LLC grew its position in 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 purchasing an additional 66 shares during the last quarter. Finally, LSV Asset Management bought a new position in shares of Microsoft during the 4th quarter worth about $44,000. Institutional investors own 71.13% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on MSFT. China Renaissance cut their price objective on shares of Microsoft from $630.00 to $550.00 and set a "buy" rating for the company in a research report on Monday, May 4th. Barclays restated an "overweight" rating on shares of Microsoft in a research note on Wednesday, June 3rd. Piper Sandler reiterated an "overweight" rating on shares of Microsoft in a research report on Tuesday, May 26th. Sanford C. Bernstein reissued an "outperform" rating and set a $646.00 price objective on shares of Microsoft in a report on Wednesday. Finally, Tigress Financial boosted their price objective on Microsoft from $595.00 to $680.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Forty-two analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $555.40.

Insider Activity

In related news, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the transaction, the chief executive officer directly owned 110,477 shares of the company's stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of the business's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the transaction, the executive vice president owned 47,468 shares in the company, valued at approximately $19,122,009.12. This trade represents a 8.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 23,762 shares of company stock worth $10,508,361. Corporate insiders own 0.03% of the company's stock.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article
• Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article
• Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article
• Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article
• Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article
• Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article

Microsoft Trading Up 0.0%

MSFT stock opened at $381.70 on Friday. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $555.45. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The business's 50 day moving average is $398.21 and its 200-day moving average is $408.08. The firm has a market cap of $2.84 trillion, a P/E ratio of 22.72, a P/E/G ratio of 1.17 and a beta of 1.13.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, topping the consensus estimate of $4.06 by $0.21. The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.Microsoft's revenue was up 18.3% on a year-over-year basis. During the same quarter last year, the company earned $3.46 EPS. Equities analysts anticipate that Microsoft Corporation will post 16.7 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft's payout ratio is currently 21.67%.

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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