Focused Investors LLC Raises Stake in Microsoft Corporation $MSFT

Focused Investors LLC grew its position in shares of Microsoft Corporation (NASDAQ:MSFT) by 56.4% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 479,400 shares of the software giant’s stock after acquiring an additional 172,800 shares during the quarter. Microsoft accounts for approximately 5.8% of Focused Investors LLC’s portfolio, making the stock its 6th largest holding. Focused Investors LLC’s holdings in Microsoft were worth $177,459,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the company. Norges Bank purchased a new stake in Microsoft in the 4th quarter valued at about $50,664,631,000. Auto Owners Insurance Co boosted its stake in shares of Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after buying an additional 60,009,531 shares during the last quarter. Nuveen LLC purchased a new position in shares of Microsoft in the 1st quarter worth approximately $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Microsoft by 500.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock valued at $30,840,432,000 after acquiring an additional 49,618,571 shares in the last quarter. Finally, Laurel Wealth Advisors LLC grew its holdings in shares of Microsoft by 49,640.3% in the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock valued at $14,905,904,000 after acquiring an additional 29,906,791 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft continues to be framed as a long-term AI winner, with commentary highlighting strong Azure growth, a multi-billion-dollar AI revenue run rate, and the company’s deep role in enterprise AI adoption. Got $1,000? 2 Artificial Intelligence (AI) Stocks to Buy Right Now and Hold for the Next Decade.
• Positive Sentiment: Microsoft’s new 20-year Chevron power deal for a Texas AI data center reinforces confidence that it is still expanding aggressively to support future AI demand, which could help drive long-term cloud revenue. Microsoft Stock In Focus After Inking 20-Yr, 2.67 GW Power Deal With Chevron To Fuel AI Growth
• Positive Sentiment: Microsoft is also getting support from bullish market commentary that says the stock may be oversold and could rebound as investors distinguish between short-term pressure and long-term fundamentals. Dan Ives Believes MSFT Is The Most Oversold Large-Cap Stock, Draws Parallels To ‘Negative’ Narratives Around GOOGL A Year Ago
• Neutral Sentiment: Microsoft announced a new AI-in-education report and related tools, but this is more of a product/marketing update than a material near-term earnings driver. Microsoft’s New AI in Education Report highlights widespread adoption and increasing demand for support
• Negative Sentiment: Fresh legal headlines are pressuring sentiment, as multiple law firms publicized securities class action claims tied to alleged investor harm and Copilot-related disclosures. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Microsoft is facing renewed skepticism around its quantum-computing claims after a Nature-linked critique questioned the scientific basis of its earlier breakthrough announcement. Microsoft’s quantum computing technology called into question, again
• Negative Sentiment: Investors are also reacting to broader concerns that heavy AI infrastructure spending could weigh on free cash flow and margin trends, even if it supports future growth. Chamath Says Alphabet, Meta and Microsoft Aren’t Bleeding Cash — They’re Building Moats

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $365.12 on Thursday. 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 stock has a fifty day simple moving average of $411.93 and a two-hundred day simple moving average of $422.73. Microsoft Corporation has a 1-year low of $356.28 and a 1-year high of $555.45. The firm has a market cap of $2.71 trillion, a price-to-earnings ratio of 21.73, a price-to-earnings-growth ratio of 1.35 and a beta of 1.11.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same period in the previous year, the company posted $3.46 earnings per share. The business’s revenue was up 18.3% on a year-over-year basis. Analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Dividend Announcement

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

Insider Buying and Selling at Microsoft

In other 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 value of $7,145,345.00. Following the completion of the transaction, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Takeshi Numoto sold 4,500 shares of the business’s stock in a transaction that occurred on 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 sale, the executive vice president directly owned 47,468 shares in the company, valued at approximately $19,122,009.12. This trade represents a 8.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 23,762 shares of company stock valued at $10,508,361 over the last three months. 0.03% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MSFT. Arete Research lifted their price target on Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. HSBC reduced their price objective on Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. The Goldman Sachs Group reiterated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Bank of America started coverage on shares of Microsoft in a report on Tuesday, March 24th. They issued a “buy” rating and a $500.00 price target on the stock. Finally, Wells Fargo & Company increased their price target on shares of Microsoft from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Forty-one analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $561.20.

Microsoft Company Profile

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).