Tectonic Advisors LLC Grows Stock Holdings in Microsoft Corporation $MSFT

Tectonic Advisors LLC grew its position in shares of Microsoft Corporation (NASDAQ:MSFT) by 19.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 9,917 shares of the software giant’s stock after purchasing an additional 1,604 shares during the period. Tectonic Advisors LLC’s holdings in Microsoft were worth $3,699,000 at the end of the most recent reporting period.

Several other institutional investors have also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC grew its position in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after acquiring an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new stake in shares of Microsoft in the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft in the 4th quarter valued at $36,000. Fairway Wealth LLC boosted its stake in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after purchasing an additional 66 shares in the last quarter. Finally, Frankly Finances LLC bought a new position in shares of Microsoft during the 2nd quarter valued at $35,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s decision to disclose Azure revenue separately beginning in fiscal 2027 is improving visibility into its cloud business. Azure generated $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, while the company’s remaining performance obligations reached $678 billion. The clearer reporting may help investors assess Microsoft’s position against Amazon Web Services and Google Cloud. Microsoft Finally Reveals Azure’s Core
• Positive Sentiment: Stifel raised its Microsoft price target to $530, citing improving Copilot adoption and artificial-intelligence momentum. OpenAI’s launch of GPT-6 Astra could also benefit Microsoft because Azure customers are reportedly already using the model, strengthening the strategic value of Microsoft’s OpenAI relationship. Stifel raises Microsoft price target
• Neutral Sentiment: Microsoft is reorganizing its reporting structure around “Devices and Consumer” and “Agents and Infra.” The change could make AI economics easier to evaluate, but it may also increase scrutiny of spending and margins once the new disclosures begin.
• Negative Sentiment: Investors remain concerned that Microsoft’s AI buildout is becoming increasingly expensive. Capital expenditures reached about $41 billion in the latest quarter, cloud gross margin reportedly fell to roughly 65% from 67%, and the company plans to continue adding data centers and AI capacity. The risk is that depreciation, power and chip costs could delay returns on the large backlog. Microsoft faces pressure despite cloud and AI growth
• Negative Sentiment: CEO Satya Nadella sold 86,525 shares worth approximately $43.4 million. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a business signal, but the transaction can still add short-term sentiment pressure after the stock’s run-up. Satya Nadella sells Microsoft stock
• Negative Sentiment: Microsoft is limiting Xbox Game Pass cloud gaming to 15 hours per month for some subscribers as infrastructure costs rise. The move may improve service economics, but it risks frustrating users and weakening Microsoft’s consumer-gaming proposition. Microsoft limits Xbox cloud gaming

Microsoft Stock Down 2.0%

Shares of NASDAQ:MSFT opened at $499.70 on Friday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The company has a market cap of $3.71 trillion, a PE ratio of 27.82, a P/E/G ratio of 1.64 and a beta of 1.11. 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 stock’s 50-day moving average is $444.52 and its 200 day moving average is $415.80.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business’s revenue was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $3.65 EPS. Sell-side analysts anticipate that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

The firm also recently declared 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. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.

Analysts Set New Price Targets

Several research firms have weighed in on MSFT. Benchmark reissued a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. KeyCorp reaffirmed an “overweight” rating on shares of Microsoft in a research note on Thursday. Weiss Ratings upgraded Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 27th. Bank of America boosted their target price on Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Wolfe Research restated an “outperform” rating and set a $550.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and an average target price of $564.27.

Insider Activity at Microsoft

In related news, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 108,335 shares of company stock worth $53,499,700 over the last quarter. Corporate insiders own 0.03% of the company’s stock.

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).