Teacher Retirement System of Texas Cuts Stake in Microsoft Corporation $MSFT

Teacher Retirement System of Texas decreased its stake in shares of Microsoft Corporation (NASDAQ:MSFT) by 6.9% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,983,056 shares of the software giant’s stock after selling 145,852 shares during the period. Microsoft makes up about 4.1% of Teacher Retirement System of Texas’ investment portfolio, making the stock its 4th largest holding. Teacher Retirement System of Texas’ holdings in Microsoft were worth $1,027,124,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the stock. Longfellow Investment Management Co. LLC lifted its position in shares of Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after purchasing an additional 20 shares in the last quarter. Bayforest Capital Ltd acquired a new stake in Microsoft in the 3rd quarter valued at $38,000. Sellwood Investment Partners LLC bought a new stake in Microsoft during the 3rd quarter worth about $49,000. University of Illinois Foundation acquired a new position in shares of Microsoft during the 2nd quarter worth about $50,000. Finally, LSV Asset Management bought a new position in shares of Microsoft in the 4th quarter valued at about $44,000. 71.13% of the stock is owned by institutional investors.

Insider Transactions at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 2,850 shares of the business’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $478.72, for a total value of $1,364,352.00. Following the completion of the sale, the executive vice president owned 55,782 shares of the company’s stock, valued at $26,703,959.04. The trade was a 4.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Judson Althoff sold 12,750 shares of the business’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total value of $6,266,880.00. Following the completion of the sale, the chief executive officer owned 129,349 shares of the company’s stock, valued at approximately $63,577,620.48. This trade represents a 8.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.03% of the company’s stock.

Microsoft Stock Performance

Shares of MSFT stock opened at $396.86 on Wednesday. Microsoft Corporation has a 52 week low of $344.79 and a 52 week high of $555.45. The company has a market capitalization of $2.95 trillion, a price-to-earnings ratio of 24.82, a PEG ratio of 1.57 and a beta of 1.08. The company has a 50-day simple moving average of $457.04 and a 200 day simple moving average of $490.56. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.86 by $0.28. The company had revenue of $81.27 billion during the quarter, compared to analysts’ expectations of $80.28 billion. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The business’s revenue was up 16.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.23 earnings per share. On average, sell-side analysts predict that Microsoft Corporation will post 13.08 earnings per share for the current year.

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s dividend payout ratio (DPR) is currently 22.76%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: SeekingAlpha notes a potential Azure reacceleration that could surprise Wall Street — if Azure growth reaccelerates, revenue and margin outlooks would improve and relieve some valuation pressure. Microsoft’s Azure Reacceleration Could Shock Wall Street
• Positive Sentiment: Coverage arguing Microsoft’s cloud + AI model provides stability — its subscription and enterprise backlog can sustain cash flow while MSFT invests in AI products like Copilot. Microsoft: Cloud And AI-Driven Stability
• Positive Sentiment: Market activity in AI infrastructure suggests durable demand: BlackRock’s big position in Nebius (an AI infra vendor used by MSFT) signals institutional conviction in AI data‑center buildouts that benefit Microsoft’s cloud services. Whale Watching: BlackRock’s Massive Bet on Nebius Group (MSFT)
• Positive Sentiment: Large external capital plans (e.g., Adani’s $100B AI data‑center push with Google & Microsoft ties) point to multi‑year cloud/demand tailwinds for hyperscalers. India’s Adani Group To Invest $100 Billion In AI Data Centers Amid Strategic Partnership With Google, Microsoft
• Neutral Sentiment: Macro bullish view: an AI productivity “miracle” case could lift long‑cycle earnings for cloud/AI leaders, but timing and calibration are uncertain. Scott Bessent’s Case for a 2026 AI Productivity Miracle
• Neutral Sentiment: Analysis noting MSFT’s pullback sets up a potential bull run if AI investments convert into durable revenue — but also highlights recent deceleration drivers that pressured the stock. Why Microsoft Stock Is Bracing For A Bull Run
• Negative Sentiment: Surveys and experts warn Big Tech may be overinvesting in AI infrastructure — that narrative is driving sector multiple compression and investor caution. Investing Experts Sound Alarm on Big Tech’s Massive AI Spending
• Negative Sentiment: Analyst headlines and downgrades (e.g., TipRanks coverage calling a “lose‑lose” scenario and Melius Research moving MSFT to Hold) are pressuring sentiment and can trigger short‑term selling. ‘A Lose-Lose Situation,’ Says Analyst as Microsoft Stock (MSFT) Faces Downgrade Melius Research Downgrades Microsoft Corporation (MSFT) Stock to Hold
• Negative Sentiment: Product/security risk: coverage of “AI recommendation poisoning” highlights emerging AI safety/reputational threats that could dent enterprise adoption or add compliance costs. “AI Recommendation Poisoning”: Microsoft Stock (NASDAQ:MSFT) Sinks on New Threat

Wall Street Analyst Weigh In

Several brokerages recently commented on MSFT. TD Cowen reissued a “buy” rating on shares of Microsoft in a research report on Thursday, January 29th. Stifel Nicolaus reiterated a “hold” rating and set a $392.00 price objective (down previously from $540.00) on shares of Microsoft in a research note on Thursday, February 5th. JPMorgan Chase & Co. decreased their target price on shares of Microsoft from $575.00 to $550.00 and set an “overweight” rating for the company in a research note on Thursday, January 29th. KeyCorp dropped their price target on shares of Microsoft from $630.00 to $600.00 and set an “overweight” rating on the stock in a research report on Thursday, January 29th. Finally, Arete Research increased their price target on shares of Microsoft from $710.00 to $730.00 in a research note on Monday, October 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and a consensus target price of $591.95.

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).