Redwood Investment Management LLC Makes New $10.36 Million Investment in Microsoft Corporation $MSFT

Redwood Investment Management LLC bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT) during the 2nd quarter, Holdings Channel reports. The firm bought 27,765 shares of the software giant’s stock, valued at approximately $10,357,000. Microsoft accounts for approximately 1.0% of Redwood Investment Management LLC’s holdings, making the stock its 20th biggest position.

Other hedge funds have also bought and sold shares of the company. Auto Owners Insurance Co grew its stake in shares of Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after acquiring an additional 60,009,531 shares during the period. Bank of America Corp DE purchased a new stake in Microsoft in the 2nd quarter worth approximately $27,338,370,000. Legal & General Group Plc purchased a new stake in Microsoft in the 2nd quarter worth approximately $18,306,443,000. Amundi increased its holdings in Microsoft by 30.8% in the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares during the period. Institutional investors own 71.13% of the company’s stock.

Insider Transactions at Microsoft

In related news, EVP Amy Hood sold 41,674 shares of the business’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction dated 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 sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 over the last quarter. 0.03% of the stock is owned by insiders.

Microsoft Stock Performance

NASDAQ:MSFT opened at $531.87 on Wednesday. The stock has a 50-day moving average price of $506.64 and a 200 day moving average price of $443.46. The stock has a market capitalization of $3.95 trillion, a P/E ratio of 29.61, a P/E/G ratio of 1.71 and a beta of 1.10. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. During the same period in the previous year, the firm earned $3.65 EPS. The firm’s revenue was up 17.7% compared to the same quarter last year. Equities research analysts forecast that Microsoft Corporation will post 19.65 EPS 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 paid a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a 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 dividend payout ratio is presently 20.27%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analyst optimism and earnings expectations: BMO Capital raised its Microsoft price target to $600 while maintaining an Outperform rating, citing potential upside for Azure. Bernstein also reiterated Outperform and lifted its target to $662. Analysts expect Microsoft’s Oct. 28 results to benefit from Azure demand and expanding enterprise AI adoption. Boeing and Microsoft AI platform article
• Positive Sentiment: AI and cloud growth remain the core bull case: Commentary points to robust Azure infrastructure demand, commercial customer commitments and Microsoft’s ability to monetize AI across enterprise markets. Its new Maia AI chips could eventually reduce reliance on outside processors and lower inference costs, although execution remains important. Microsoft Q1 outlook
• Positive Sentiment: Xbox and industry partnerships: Microsoft plans next-generation Xbox consoles and handheld devices for the 2027–2028 holiday seasons. Separately, its partnership with AMD is intended to improve Xbox performance, while Boeing’s new Dataliner aircraft-data platform uses Microsoft Azure AI Foundry and could support enterprise cloud adoption. Next-generation Xbox article
• Neutral Sentiment: Tokenized-stock objection: Microsoft joined Alphabet and Goldman Sachs in objecting to having its shares listed on a proposed OKX-ICE tokenized-stock platform. The move may limit potential trading exposure but does not directly affect operating results. Tokenized stocks article
• Negative Sentiment: U.K. AI data-center withdrawal: Microsoft withdrew as anchor tenant from Nscale’s planned Loughton, Essex, facility because grid-connection delays threatened the power supply. The decision highlights electricity and permitting constraints that could slow Azure capacity expansion and increase infrastructure costs. Microsoft U.K. data-center withdrawal
• Negative Sentiment: Regulatory and execution pressure: Britain’s competition watchdog is considering strategic-market-status rules for Microsoft’s business software, potentially increasing compliance requirements. Investors are also watching whether very large AI capital expenditures generate sufficient revenue and cash flow to justify the spending. U.K. regulation article
• Negative Sentiment: Broader AI-stock weakness: A selloff across AI-related equities and concerns about financing, power availability and uncertain returns are weighing on large technology stocks, including Microsoft. The company’s elevated valuation leaves less room for disappointment if Azure growth or earnings guidance falls short.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. UBS Group lifted their price target on shares of Microsoft from $525.00 to $675.00 and gave the company a “buy” rating in a report on Thursday, October 15th. Raymond James Financial lowered shares of Microsoft from a “moderate buy” rating to a “strong sell” rating in a research report on Wednesday, September 23rd. Guggenheim reissued a “buy” rating and issued a $586.00 price objective on shares of Microsoft in a research note on Monday, July 27th. BNP Paribas Exane downgraded shares of Microsoft from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Finally, Tigress Financial raised their price objective on shares of Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Microsoft presently has a consensus rating of “Moderate Buy” and an average target price of $592.15.

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.