Federated Hermes Inc. Purchases 73,003 Shares of Microsoft Corporation $MSFT

Federated Hermes Inc. increased its position in shares of Microsoft Corporation (NASDAQ:MSFT) by 2.8% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 2,707,184 shares of the software giant’s stock after purchasing an additional 73,003 shares during the quarter. Microsoft accounts for 2.5% of Federated Hermes Inc.’s investment portfolio, making the stock its 2nd biggest holding. Federated Hermes Inc.’s holdings in Microsoft were worth $1,402,186,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of the company. Norges Bank acquired a new position in Microsoft during the second quarter worth about $50,493,678,000. Nuveen LLC purchased a new position in shares of Microsoft during the 1st quarter worth approximately $18,733,827,000. Laurel Wealth Advisors LLC raised its position in shares of Microsoft by 49,640.3% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock worth $14,905,904,000 after purchasing an additional 29,906,791 shares during the last quarter. Vanguard Group Inc. lifted its stake in Microsoft by 2.0% in the 2nd quarter. Vanguard Group Inc. now owns 705,077,786 shares of the software giant’s stock valued at $350,712,742,000 after buying an additional 13,691,572 shares in the last quarter. Finally, Northern Trust Corp grew its holdings in Microsoft by 16.1% during the 4th quarter. Northern Trust Corp now owns 83,787,746 shares of the software giant’s stock valued at $35,316,535,000 after buying an additional 11,600,470 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: BNP Paribas says OpenAI’s updated spending plan still benefits big cloud suppliers, reinforcing Azure demand for Microsoft’s AI infrastructure. OpenAI’s New Spending Plan Is Still a Positive for Microsoft and Oracle, Says BNP Paribas
• Positive Sentiment: Goldman Sachs’ bullish take on Microsoft after Maia 200 (Microsoft’s AI accelerator) narrows performance gaps with competitors gives a growth narrative that can support multiple expansion or limit downside. Maia 200 Gives Microsoft Stock (NASDAQ:MSFT) a Boost With Goldman Sachs, But Nowhere Else
• Positive Sentiment: Third‑party software and agents continue to land in Microsoft Marketplace (CrowdStrike Falcon, AI/R’s Llia, Reltio Azure certification), expanding Azure ecosystem monetization and ARR stickiness. Microsoft (MSFT) Positions for Long-Term AI and Enterprise Growth AI/R’s Intelligent AI Agent for Recruitment Operations Now Available in the Microsoft Marketplace
• Positive Sentiment: Bridgewater’s estimate that big tech will invest roughly $650B in AI this year supports continued hyperscaler demand for cloud/datacenter capacity—structural tailwind for Azure. Big Tech to invest about $650 billion in AI in 2026, Bridgewater says
• Neutral Sentiment: Market technicals and insider activity are mixed: a senior director’s recent buy and oversold indicators (RSI, MACD) suggest the selloff may be nearing exhaustion, but that’s not a guarantee of an immediate rebound. Microsoft stock page (MarketBeat)
• Negative Sentiment: Rising capex for AI/datacenters (66% surge noted by some analysts) is raising investor fears about the timing of returns and free‑cash‑flow pressure—even if Microsoft can fund spending internally. Is MSFT Stock Vulnerable to Rising CapEx Pressure From AI Spending?
• Negative Sentiment: Leadership change at Xbox—Phil Spencer’s retirement and Asha Sharma’s promotion—spooked investors who see gaming as a near‑term revenue headwind and worry about execution during the transition. That news contributed to intraday weakness. Gaming Reinvents Itself Around Software and Subscriptions Microsoft Stock (MSFT) Slips on Departure of Gaming CEO Phil Spencer
• Negative Sentiment: Analyst churn: some downgrades and skeptical coverage (e.g., recent downgrade notes) add selling pressure during the broader tech pullback. Palantir Upgraded, Microsoft Downgraded: Updated Rankings on Top Blue-Chip Stocks
• Negative Sentiment: Competitive and strategic risks: OpenAI’s expanding partnerships (consultancies) and questions about the long‑term return on Microsoft’s ~\$13B OpenAI investment create uncertainty about exclusive advantages and future monetization. OpenAI partners with McKinsey, BCG, Accenture, and Capgemini to push its Frontier AI agent platform Microsoft (MSFT) Stock: Tech Giant Locks 20% of OpenAI Revenue to 2032

Microsoft Stock Performance

Shares of MSFT stock opened at $384.47 on Tuesday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. The firm has a market capitalization of $2.85 trillion, a price-to-earnings ratio of 24.04, a price-to-earnings-growth ratio of 1.55 and a beta of 1.08. Microsoft Corporation has a one year low of $344.79 and a one year high of $555.45. The company has a 50 day moving average price of $450.33 and a 200 day moving average price of $486.83.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating the consensus estimate 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 net margin of 39.04% and a return on equity of 32.34%. The business’s quarterly revenue was up 16.7% compared to the same quarter last year. During the same period in the previous year, the company earned $3.23 EPS. Sell-side analysts anticipate that Microsoft Corporation will post 13.08 EPS for the current year.

Microsoft Dividend Announcement

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

Insider Transactions at Microsoft

In other news, EVP Takeshi Numoto sold 2,850 shares of Microsoft stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $478.72, for a total value of $1,364,352.00. Following the transaction, the executive vice president directly 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 this link. Also, Director John W. Stanton bought 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The shares were acquired at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the transaction, the director owned 83,905 shares in the company, valued at approximately $33,339,651.75. This represents a 6.34% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 0.03% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Barclays reissued a “buy” rating on shares of Microsoft in a report on Friday, February 6th. Sanford C. Bernstein reissued an “outperform” rating and issued a $641.00 target price (down previously from $645.00) on shares of Microsoft in a research note on Thursday, January 29th. UBS Group reaffirmed an “outperform” rating on shares of Microsoft in a research note on Thursday, January 29th. New Street Research lifted their price target on shares of Microsoft from $670.00 to $675.00 and gave the stock a “buy” rating in a report on Thursday, January 29th. Finally, BMO Capital Markets reduced their price objective on shares of Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $591.95.

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).