Hound Partners LLC Buys 12,922 Shares of Microsoft Corporation $MSFT

Hound Partners LLC increased its stake in Microsoft Corporation (NASDAQ:MSFT) by 37.6% during the first quarter, Holdings Channel.com reports. The fund owned 47,267 shares of the software giant’s stock after buying an additional 12,922 shares during the period. Microsoft makes up about 2.2% of Hound Partners LLC’s portfolio, making the stock its 12th biggest position. Hound Partners LLC’s holdings in Microsoft were worth $17,497,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC increased its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors acquired a new position in Microsoft in the fourth quarter valued at $34,000. Timmons Wealth Management LLC bought a new stake in Microsoft during the fourth quarter valued at $36,000. Fairway Wealth LLC grew its holdings in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after acquiring an additional 66 shares during the period. Finally, LSV Asset Management acquired a new stake in Microsoft during the 4th quarter worth about $44,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft Stock Performance

Shares of Microsoft stock opened at $492.43 on Thursday. The business has a 50-day simple moving average of $408.32 and a 200 day simple moving average of $407.67. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The firm has a market capitalization of $3.66 trillion, a price-to-earnings ratio of 27.42, a PEG ratio of 1.62 and a beta of 1.11.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the company earned $3.65 earnings per share. The company’s quarterly revenue was up 17.7% on a year-over-year basis. On average, research analysts anticipate that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.

Insiders Place Their Bets

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction 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. The trade was a 10.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 37,310 shares of company stock worth $17,256,219. 0.03% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. The Goldman Sachs Group reissued a “buy” rating and issued a $640.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. TD Cowen reiterated a “buy” rating and issued a $540.00 target price on shares of Microsoft in a report on Thursday, July 30th. Royal Bank Of Canada reissued an “outperform” rating and issued a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Wedbush reaffirmed an “outperform” rating and set a $575.00 price objective on shares of Microsoft in a research report on Wednesday, May 13th. Finally, Rothschild & Co Redburn lowered their price objective on shares of Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a research note on Thursday, April 23rd. Forty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $560.27.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL
• Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target
• Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft
• Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand
• Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap?
• Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published

About Microsoft

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).