Jennison Associates LLC Reduces Holdings in Microsoft Corporation $MSFT

Jennison Associates LLC lessened its stake in Microsoft Corporation (NASDAQ:MSFT) by 3.1% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 21,468,902 shares of the software giant’s stock after selling 689,567 shares during the period. Microsoft accounts for approximately 6.5% of Jennison Associates LLC’s investment portfolio, making the stock its 2nd largest holding. Jennison Associates LLC owned about 0.29% of Microsoft worth $11,119,818,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of MSFT. WFA Asset Management Corp boosted its position in shares of Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after purchasing an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. raised its stake in Microsoft by 0.3% in the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after buying an additional 38 shares during the last quarter. Discipline Wealth Solutions LLC boosted its holdings in Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after acquiring an additional 2,138 shares in the last quarter. Wealth Group Ltd. boosted its holdings in Microsoft by 1.2% in the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after acquiring an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC grew its stake in shares of Microsoft by 0.4% during the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after acquiring an additional 96 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Trading Down 1.1%

Shares of NASDAQ:MSFT opened at $396.86 on Wednesday. Microsoft Corporation has a 1 year low of $344.79 and a 1 year high of $555.45. The firm has a market capitalization of $2.95 trillion, a price-to-earnings ratio of 24.82, a price-to-earnings-growth ratio of 1.57 and a beta of 1.08. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. The business’s 50 day moving average price is $457.04 and its 200-day moving average price is $490.56.

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

Microsoft Announces Dividend

The company also recently declared 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 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%.

More Microsoft News

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. Guggenheim reaffirmed a “buy” rating and issued a $586.00 price objective on shares of Microsoft in a research report on Thursday, January 22nd. Bank of America decreased their price target on shares of Microsoft from $640.00 to $520.00 and set a “buy” rating for the company in a report on Monday, January 26th. Robert W. Baird set a $540.00 price objective on shares of Microsoft and gave the company an “outperform” rating in a report on Thursday, January 29th. KeyCorp cut their target price on Microsoft from $630.00 to $600.00 and set an “overweight” rating on the stock in a research report on Thursday, January 29th. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $600.00 price target (down previously from $650.00) on shares of Microsoft in a research report on Thursday, January 29th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $591.95.

Insider Activity at Microsoft

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

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).