Tradewinds Capital Management LLC Has $9.95 Million Stock Position in Microsoft Corporation $MSFT

Key Points

• Tradewinds Capital Management increased its Microsoft position by 4.4% in the second quarter, holding 26,673 shares valued at approximately $9.95 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue up 17.7% year over year and EPS of $4.74 exceeding estimates. Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $569.29.
• Microsoft raised its quarterly dividend 8% to $0.98 per share, while investors continue to monitor AI-related capital spending, execution risks, insider selling and restructuring within its Xbox business.

Tradewinds Capital Management LLC boosted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.4% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 26,673 shares of the software giant's stock after acquiring an additional 1,126 shares during the quarter. Microsoft accounts for about 1.8% of Tradewinds Capital Management LLC's investment portfolio, making the stock its 12th largest holding. Tradewinds Capital Management LLC's holdings in Microsoft were worth $9,950,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. Frankly Finances LLC acquired a new position in shares of Microsoft in the second quarter worth $35,000. MidAtlantic Capital Management Inc. purchased a new position in Microsoft in the fourth quarter valued at about $59,000. Lifetime Wealth Management P.C. purchased a new position in Microsoft in the fourth quarter valued at about $101,000. Ramsey Quantitative Systems acquired a new position in Microsoft in the 2nd quarter worth about $112,000. Finally, Midwest Capital Advisors LLC raised its stake in shares of Microsoft by 16.6% during the 1st quarter. Midwest Capital Advisors LLC now owns 422 shares of the software giant's stock worth $156,000 after purchasing an additional 60 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts raised their outlook. Oppenheimer increased its Microsoft price target to $570 from $515 while maintaining an Outperform rating, citing sustained Azure and Microsoft 365 commercial momentum into fiscal 2027. Cantor Fitzgerald also reportedly raised its target to $608 and kept an Overweight rating. Oppenheimer Microsoft price target article
• Positive Sentiment: Azure has additional growth levers. BNP Paribas said recent Azure strength may not reflect the full opportunity, pointing to higher pricing as contracts renew, capacity expansion and a potential SpaceX cloud relationship. Azure growth has reportedly reached the mid-40% range, supporting the view that AI infrastructure demand can continue driving revenue. BNP Paribas Azure outlook article
• Positive Sentiment: Capital returns remain supportive. Microsoft raised its quarterly dividend approximately 8% to $0.98 per share, extending its dividend-growth streak to more than two decades. The increase signals management confidence, although the modest yield is unlikely to be the primary stock catalyst. Microsoft dividend increase article
• Neutral Sentiment: OpenAI remains both an opportunity and a concentration risk. Microsoft’s AI partner is reportedly seeking a valuation above $1.2 trillion, potentially reinforcing Microsoft’s Azure and Copilot ecosystem. However, projected cash burn of roughly $278 billion and the company’s reliance on Microsoft-supported infrastructure raise questions about customer durability and AI spending economics. OpenAI valuation and Microsoft article
• Negative Sentiment: Xbox layoffs pressured sentiment. Microsoft is cutting approximately 268 Xbox jobs, with broader reports pointing to roughly 500 affected employees, while shifting the next Halo game to Activision. The move highlights a continuing gaming reset and was the clearest near-term reason for weakness in MSFT shares. Microsoft Xbox restructuring article
• Negative Sentiment: AI execution risks remain. Investors continue to monitor heavy capital spending, copyright and regulatory challenges, and concerns that AI revenue is concentrated among a small number of customers. These risks could pressure margins or the valuation if Azure growth fails to meet elevated expectations.

Microsoft Stock Down 0.7%

Microsoft stock opened at $498.00 on Wednesday. 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 Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The firm has a fifty day moving average price of $471.45 and a two-hundred day moving average price of $424.28. The firm has a market cap of $3.70 trillion, a price-to-earnings ratio of 27.73, a P/E/G ratio of 1.61 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 analysts' consensus estimates of $4.24 by $0.50. The business 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 revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the previous year, the company posted $3.65 earnings per share. As a group, analysts forecast that Microsoft Corporation will post 19.61 earnings per share for the current year.

Microsoft Increases Dividend

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

Insider Activity at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 143,009 shares of company stock worth $71,420,699. Insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on MSFT shares. CLSA reissued an "outperform" rating on shares of Microsoft in a research note on Thursday, July 30th. Argus reduced their target price on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research note on Friday, July 10th. DA Davidson reissued a "buy" rating and issued a $550.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Oppenheimer raised their price target on shares of Microsoft from $515.00 to $570.00 and gave the company an "outperform" rating in a report on Tuesday. Finally, BMO Capital Markets upped their price objective on shares of Microsoft from $500.00 to $515.00 and gave the stock an "outperform" rating in a report on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Microsoft has a consensus rating of "Moderate Buy" and an average price target of $569.29.

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

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