Saranac Partners Ltd purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, Holdings Channel reports. The firm purchased 33,123 shares of the software giant’s stock, valued at approximately $12,339,000. Microsoft comprises approximately 3.6% of Saranac Partners Ltd’s holdings, making the stock its 3rd largest holding.
A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Solstein Capital LLC acquired a new stake in shares of Microsoft in the second quarter valued at approximately $8,522,000. Jericho Financial LLP bought a new stake in shares of Microsoft in the second quarter worth $7,740,000. Alpha Advisors LLC VA acquired a new position in Microsoft during the second quarter worth $1,291,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Microsoft during the second quarter worth $635,732,000. Finally, Capital Square LLC bought a new position in Microsoft in the second quarter valued at $2,035,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Microsoft Stock Down 1.9%
Shares of NASDAQ MSFT traded down $10.39 during trading hours on Friday, hitting $529.05. The company had a trading volume of 24,810,924 shares, compared to its average volume of 23,057,592. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm’s 50 day moving average is $505.53 and its 200-day moving average is $440.59. The stock has a market capitalization of $3.93 trillion, a P/E ratio of 29.46, a price-to-earnings-growth ratio of 1.73 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share 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 the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. 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 earned $3.65 earnings per share. On average, analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.
Microsoft Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders 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 dividend yield of 0.7%. The ex-dividend date of this dividend 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
MSFT has been the topic of several recent research reports. CLSA reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. JPMorgan Chase & Co. reissued a “buy” rating on shares of Microsoft in a research report on Monday, September 28th. Mizuho increased their price objective on shares of Microsoft from $510.00 to $600.00 and gave the stock an “outperform” rating in a research note on Thursday. Sanford C. Bernstein set a $660.00 price objective on shares of Microsoft in a research note on Monday, August 10th. Finally, Wolfe Research cut Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday, September 23rd. Forty-two equities 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 company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $589.71.
View Our Latest Analysis on MSFT
Insider Activity
In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Amy Hood sold 7,305 shares of the business’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total value of $3,984,293.10. Following the transaction, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. This trade represents a 1.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company’s stock.
Microsoft News Summary
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 is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
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