Microsoft Corporation $MSFT Holdings Lifted by New Mexico Educational Retirement Board

New Mexico Educational Retirement Board increased its holdings in Microsoft Corporation (NASDAQ:MSFT) by 14.7% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 392,261 shares of the software giant’s stock after buying an additional 50,314 shares during the quarter. Microsoft comprises 3.7% of New Mexico Educational Retirement Board’s portfolio, making the stock its 3rd largest holding. New Mexico Educational Retirement Board’s holdings in Microsoft were worth $146,321,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Frankly Finances LLC acquired a new position in shares of Microsoft during the second quarter valued at approximately $35,000. Bard Associates Inc. acquired a new stake in Microsoft during the second quarter valued at approximately $37,000. PMV Capital Advisers LLC bought a new stake in Microsoft during the second quarter worth approximately $38,000. Fiduciary Advisors Inc. grew its position in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after buying an additional 34 shares during the last quarter. Finally, Persistent Asset Partners Ltd acquired a new stake in shares of Microsoft during the 2nd quarter valued at $60,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Trading Up 0.7%

Shares of NASDAQ MSFT opened at $524.51 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company’s 50 day simple moving average is $508.51 and its 200 day simple moving average is $446.17. The firm has a market capitalization of $3.90 trillion, a P/E ratio of 29.20, a P/E/G ratio of 1.67 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The company 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%. During the same period in the prior year, the business posted $3.65 EPS. Microsoft’s revenue was up 17.7% on a year-over-year basis. On average, analysts predict that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is an increase from Microsoft’s previous quarterly dividend of $0.91. 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. Microsoft’s payout ratio is 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft’s Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Insiders Place Their Bets

In related news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president directly owned 533,624 shares in the company, valued at $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 over the last 90 days. 0.03% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MSFT. Argus decreased their target price on Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research report on Friday, July 10th. DA Davidson restated a “buy” rating and issued a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $586.00 target price on shares of Microsoft in a report on Wednesday. Wells Fargo & Company lifted their target price on Microsoft from $700.00 to $725.00 and gave the stock an “overweight” rating in a research report on Thursday, October 1st. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Microsoft presently has an average rating of “Moderate Buy” and an average target price of $592.15.

Microsoft 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.