RB Capital Management LLC Buys 27,919 Shares of Microsoft Corporation $MSFT

RB Capital Management LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 27,919 shares of the software giant’s stock, valued at approximately $10,415,000. Microsoft makes up 2.0% of RB Capital Management LLC’s holdings, making the stock its 11th largest holding.

Other institutional investors and hedge funds have also bought and sold shares of the company. Denver PWM LLC bought a new position in shares of Microsoft during the 2nd quarter valued at about $2,783,000. Orion Capital Management LLC purchased a new position in shares of Microsoft during the second quarter valued at about $3,985,000. Bridger Management LLC purchased a new position in shares of Microsoft during the second quarter valued at about $4,588,000. Glenview Trust Co bought a new stake in shares of Microsoft in the second quarter worth about $194,258,000. Finally, North Star Asset Management Inc. bought a new stake in shares of Microsoft in the second quarter worth about $59,317,000. 71.13% of the stock is owned by institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s AI diagnostic system reportedly diagnosed complex medical cases more than twice as often as generalist physicians in a simulation published in Science. The result supports the company’s ambitions in healthcare and “medical superintelligence.” Microsoft AI medical diagnostic study
• Positive Sentiment: Reports highlighted strong underlying cloud momentum: Azure annual revenue has surpassed $100 billion, cloud-services growth reached 43%, and Microsoft’s commercial backlog rose to approximately $678 billion. These trends could support the investment case if the company demonstrates continued acceleration in its upcoming earnings report. Microsoft cloud demand and backlog
• Positive Sentiment: CEO Satya Nadella said Microsoft is reorganizing around AI agents, broader model choice and lower-cost computing. The strategy could expand Copilot and Azure adoption across business workflows. Microsoft AI agent strategy
• Positive Sentiment: A strategic collaboration with Boehringer Ingelheim will pursue AI-backed clinical development and digital patient twins, providing another potential application for Microsoft’s cloud and AI platforms. Microsoft and Boehringer Ingelheim partnership
• Neutral Sentiment: Investors are focused on next week’s fiscal first-quarter earnings report. Analysts expect double-digit earnings growth, but the market increasingly wants evidence that Azure growth can keep pace with rivals and justify Microsoft’s substantial AI infrastructure investments. Microsoft earnings preview
• Negative Sentiment: Microsoft’s large AI capital expenditures remain a key valuation risk. While spending may create a long-term competitive moat, investors are concerned that data-center and infrastructure costs could pressure near-term returns, especially amid higher interest rates and market volatility. Microsoft AI spending and investment risk
• Negative Sentiment: Xbox announced pricing for cloud streaming of games users already own, prompting concerns about consumer reaction and pressure on Microsoft’s gaming business. Xbox cloud gaming pricing
• Negative Sentiment: Former CEO Bill Gates warned that AI could bring roughly two decades of disruption, reinforcing investor concerns about an AI investment bubble and the potential for expensive projects to produce uncertain returns. Bill Gates AI disruption comments

Insider Activity

In other Microsoft news, EVP Amy Hood sold 7,305 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value of $3,984,293.10. Following the completion of the sale, the executive vice president owned 555,396 shares of the company’s stock, valued at $302,924,086.32. This trade represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company’s stock.

Microsoft Stock Down 2.2%

NASDAQ MSFT opened at $521.08 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The firm has a market capitalization of $3.87 trillion, a price-to-earnings ratio of 29.01, a PEG ratio of 1.71 and a beta of 1.10. The company has a fifty day moving average of $507.93 and a two-hundred day moving average of $445.62.

Microsoft (NASDAQ:MSFT) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the firm posted $3.65 earnings per share. The business’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued 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 payout ratio is currently 20.27%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on MSFT shares. BNP Paribas Exane downgraded Microsoft from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Guggenheim restated a “buy” rating and set a $586.00 price target on shares of Microsoft in a report on Wednesday. Morgan Stanley downgraded Microsoft from an “overweight” rating to a “negative” rating in a research note on Monday, October 5th. BMO Capital Markets upped their price objective on Microsoft from $515.00 to $600.00 and gave the stock an “outperform” rating in a report on Tuesday. Finally, DA Davidson reaffirmed a “buy” rating and set a $550.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $592.15.

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.