Microsoft Corporation $MSFT Shares Purchased by Saudi Central Bank

Saudi Central Bank lifted its position in Microsoft Corporation (NASDAQ:MSFT) by 89.5% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 493,806 shares of the software giant’s stock after purchasing an additional 233,185 shares during the period. Microsoft comprises approximately 2.4% of Saudi Central Bank’s portfolio, making the stock its 7th biggest holding. Saudi Central Bank’s holdings in Microsoft were worth $184,200,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the company. Bank of America Corp DE bought a new stake in Microsoft in the 2nd quarter worth $27,338,370,000. Legal & General Group Plc bought a new position in shares of Microsoft during the second quarter valued at about $18,306,443,000. Jupiter Topco LLC bought a new position in shares of Microsoft during the second quarter valued at about $6,928,664,000. Canada Pension Plan Investment Board bought a new position in shares of Microsoft during the second quarter valued at about $5,653,812,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in shares of Microsoft during the second quarter worth about $4,000,706,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Rothschild & Co Redburn set a $440.00 target price on Microsoft in a research note on Monday, September 21st. Citigroup reaffirmed a “market outperform” rating on shares of Microsoft in a research report on Thursday. Royal Bank Of Canada reiterated an “outperform” rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Microsoft in a research report on Monday, September 28th. Finally, DA Davidson lifted their price objective on Microsoft from $550.00 to $650.00 and gave the stock a “buy” rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $609.54.

Microsoft Stock Down 1.6%

MSFT stock opened at $521.91 on Friday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $551.15. The company has a market capitalization of $3.88 trillion, a price-to-earnings ratio of 27.24, a price-to-earnings-growth ratio of 1.64 and a beta of 1.10. The business’s 50 day moving average price is $512.91 and its two-hundred day moving average price is $438.43. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.22.

Microsoft (NASDAQ:MSFT) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating analysts’ consensus estimates of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company had revenue of $92.28 billion during the quarter, compared to analysts’ expectations of $90.62 billion. During the same quarter last year, the business posted $4.13 EPS. The firm’s revenue for the quarter was up 18.8% compared to the same quarter last year. As a group, analysts forecast that Microsoft Corporation will post 19.79 earnings per share for the current fiscal 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 issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is currently 19.00%.

Insider Transactions at Microsoft

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction on 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 completion of the transaction, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 sale, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 150,314 shares of company stock worth $75,404,992. 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 delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

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.