Trajan Wealth LLC Acquires New Shares in Microsoft Corporation $MSFT

Key Points

• Trajan Wealth LLC acquired 277,148 Microsoft shares worth approximately $103.4 million during the second quarter, making Microsoft its sixth-largest holding and representing about 3.9% of its portfolio.
• Wall Street sentiment remains favorable: 42 analysts rate Microsoft a Buy, with an average price target of $589.71, while several firms recently raised their targets to as high as $625.
• Microsoft exceeded quarterly earnings and revenue expectations, with EPS of $4.74 and revenue of $90.01 billion, while increasing its quarterly dividend to $0.98 per share. However, executives sold shares, and investors remain focused on AI spending, margins and regulatory risks.

Trajan Wealth LLC acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 277,148 shares of the software giant's stock, valued at approximately $103,382,000. Microsoft accounts for approximately 3.9% of Trajan Wealth LLC's investment portfolio, making the stock its 6th biggest position.

Several other institutional investors have also recently made changes to their positions in MSFT. Van Hulzen Asset Management LLC purchased a new position in shares of Microsoft during the 2nd quarter valued at approximately $37,112,000. Veratis Advisors Inc. purchased a new stake in Microsoft during the second quarter worth $826,000. Wood Tarver Financial Group LLC purchased a new stake in Microsoft during the second quarter worth $2,428,000. Paradigm Capital Management LLC NV purchased a new stake in Microsoft during the second quarter worth $2,249,000. Finally, Front Street Capital Management Inc. acquired a new stake in Microsoft during the second quarter valued at $3,587,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have weighed in on MSFT. Bank of America lifted their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. Needham & Company LLC started coverage on shares of Microsoft in a research report on Wednesday, September 23rd. They issued a "buy" rating for the company. TD Cowen increased their target price on shares of Microsoft from $540.00 to $625.00 and gave the stock a "buy" rating in a research note on Thursday. Barclays increased their target price on shares of Microsoft from $512.00 to $600.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 13th. Finally, Rothschild & Co Redburn set a $440.00 price objective on Microsoft in a report on Monday, September 21st. Forty-two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $589.71.

Insider Buying and Selling at Microsoft

In other Microsoft 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 value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents 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. Insiders have sold a total of 150,314 shares of company stock worth $75,404,992 in the last quarter. Insiders own 0.03% of the company's stock.

Microsoft Stock Performance

Shares of MSFT stock opened at $529.05 on Monday. The stock's fifty day moving average is $505.53 and its two-hundred day moving average is $441.16. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The firm has a market capitalization of $3.93 trillion, a P/E ratio of 29.46, a PEG ratio of 1.70 and a beta of 1.10. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72.

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

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is currently 20.27%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive
• Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource
• Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper
• Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins.
• Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip
• Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure.

Microsoft Company Profile

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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