Ascent Group LLC Reduces Stock Position in Microsoft Corporation $MSFT

Key Points

• Ascent Group reduced its Microsoft position by 7.1% in the second quarter, selling 10,073 shares and retaining 132,096 shares valued at approximately $49.3 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74 versus the $4.24 consensus estimate. The company also raised its quarterly dividend to $0.98 per share.
• Analysts remain broadly bullish, citing Azure growth and expanding Copilot adoption; 43 analysts rate the stock Buy, with a consensus “Moderate Buy” rating and an average price target of $569.29. Risks include the high cost of Microsoft’s AI infrastructure investments, privacy concerns and potential competition from OpenAI.

Ascent Group LLC decreased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 7.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 132,096 shares of the software giant's stock after selling 10,073 shares during the quarter. Microsoft makes up 1.5% of Ascent Group LLC's holdings, making the stock its 9th biggest position. Ascent Group LLC's holdings in Microsoft were worth $49,275,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management boosted its position in shares of Microsoft by 4.0% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant's stock valued at $85,604,000 after acquiring an additional 8,773 shares during the period. Markel Group Inc. grew its stake in shares of Microsoft by 0.4% in the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant's stock valued at $199,014,000 after acquiring an additional 1,950 shares in the last quarter. Bessemer Group Inc. increased its position in Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant's stock worth $2,562,197,000 after acquiring an additional 537,634 shares during the period. Taylor Securities Services Inc. acquired a new stake in Microsoft in the 4th quarter worth about $2,616,000. Finally, Harel Insurance Investments & Financial Services Ltd. raised its stake in Microsoft by 138.8% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant's stock worth $502,077,000 after purchasing an additional 788,297 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, EVP Amy Hood sold 41,674 shares of Microsoft 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 completion of the transaction, the executive vice president owned 533,624 shares of the company's stock, 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 filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by corporate insiders.

Microsoft Price Performance

Shares of MSFT opened at $508.96 on Wednesday. The business has a 50-day moving average of $482.29 and a 200-day moving average of $427.75. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a market capitalization of $3.78 trillion, a price-to-earnings ratio of 28.34, a price-to-earnings-growth ratio of 1.64 and a beta of 1.11. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the firm posted $3.65 EPS. The company's revenue for the quarter was up 17.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Microsoft Corporation will post 19.62 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently disclosed 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 represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is currently 20.27%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Copilot remains the primary catalyst. Jefferies reiterated its bullish view, citing Microsoft’s redesigned Copilot, new usage-based revenue opportunities and potential for paid Copilot seats to double over the next year. Enterprise AI adoption, however, is expected to build gradually. Jefferies Doubles Down on Microsoft's Copilot Opportunity
• Positive Sentiment: Analysts see further upside. JPMorgan maintained a Buy rating with a $625 target, while RBC reportedly set a $640 target, supported by Azure growth, Copilot adoption and Microsoft’s expanding AI infrastructure. The stock is also on track for its strongest quarterly performance in decades, reflecting a market “flight to quality.” Microsoft Stock Surges Past $500
• Positive Sentiment: Azure and enterprise demand support the long-term case. Recent commentary points to Azure growth above 40%, rapidly increasing Copilot seats and a commercial backlog approaching $700 billion. Microsoft is also bringing OpenAI’s autonomous “Dots” AI workers into its enterprise security ecosystem, potentially expanding cloud and software consumption. Microsoft Brings OpenAI's Autonomous Dots AI Workers Into the Enterprise
• Neutral Sentiment: AI policy developments remain mixed. President Trump reaffirmed support for data centers and announced voluntary AI controls with Microsoft and other technology companies, potentially easing regulatory concerns while leaving uncertainty over whether voluntary safeguards will be sufficient. At A.I. Event, Trump Asks Meta, OpenAI and Microsoft to Make Safety Decisions Themselves
• Negative Sentiment: Privacy and competitive risks are weighing on sentiment. Reports that humans may review some Copilot prompts have raised data-privacy concerns. OpenAI is also launching workplace features that increasingly resemble Microsoft Office, intensifying the risk that a key partner could compete directly with Microsoft’s software franchise. OpenAI Takes on Microsoft With a ChatGPT Office Suite
• Negative Sentiment: Investors are questioning the cost and valuation of the AI buildout. Microsoft is reducing staff while committing heavily to data centers, and some analysts argue that cash-flow benefits may take longer to materialize. After its rally, elevated expectations leave less room for execution setbacks.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Citigroup reiterated a "market outperform" rating on shares of Microsoft in a research note on Monday, September 21st. JPMorgan Chase & Co. restated a "buy" rating on shares of Microsoft in a research note on Monday. Jefferies Financial Group reiterated a "buy" rating on shares of Microsoft in a research report on Monday, September 21st. Argus reduced their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a report on Friday, July 10th. Finally, Needham & Company LLC assumed coverage on Microsoft in a research note on Wednesday, September 23rd. They issued a "buy" rating for the company. Forty-three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $569.29.

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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