Cambridge Advisors Inc. Sells 2,144 Shares of Microsoft Corporation $MSFT

Key Points

• Cambridge Advisors reduced its Microsoft position by 7.8%, selling 2,144 shares and retaining 25,493 shares valued at approximately $9.51 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with revenue of $90.01 billion, up 17.7% year over year, and EPS of $4.74 versus the $4.24 analyst consensus. Analysts maintain a “Moderate Buy” consensus with an average price target of $564.27.
• Insiders have been selling shares, including CEO Satya Nadella’s $43.4 million sale under a pre-arranged trading plan; insiders sold 105,835 shares worth $52.5 million in the last quarter. Microsoft also declared a quarterly dividend of $0.91 per share, equivalent to a 0.7% annual yield.

Cambridge Advisors Inc. lowered its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 7.8% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 25,493 shares of the software giant's stock after selling 2,144 shares during the quarter. Microsoft comprises 1.6% of Cambridge Advisors Inc.'s investment portfolio, making the stock its 15th biggest holding. Cambridge Advisors Inc.'s holdings in Microsoft were worth $9,510,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Longfellow Investment Management Co. LLC lifted its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Shepherd Kaplan Krochuk LLC grew its position in shares of Microsoft by 4.9% in the third quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant's stock valued at $223,000 after purchasing an additional 20 shares in the last quarter. Better Money Decisions LLC raised its stake in shares of Microsoft by 0.6% during the 2nd quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant's stock valued at $1,740,000 after purchasing an additional 21 shares during the period. Endowment Wealth Management Inc. raised its stake in shares of Microsoft by 0.4% during the 3rd quarter. Endowment Wealth Management Inc. now owns 5,251 shares of the software giant's stock valued at $2,720,000 after purchasing an additional 21 shares during the period. Finally, Pollock Investment Advisors LLC lifted its holdings in Microsoft by 0.8% during the 3rd quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant's stock worth $1,453,000 after purchasing an additional 21 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s Azure business reportedly crossed a significant revenue milestone, while its large backlog points to continued demand for cloud and AI services. This is strengthening the long-term bull case and fueling speculation that the stock could approach $600. Microsoft Stock Is Building a Trillion-Dollar AI Opportunity
• Positive Sentiment: Microsoft and Nvidia are described as major beneficiaries of a potential $7 trillion AI infrastructure buildout. Rising data-center construction and demand for computing capacity could support sustained growth across Azure, software, and AI products. Nvidia, Microsoft at Center of $7 Trillion AI Boom
• Positive Sentiment: Investment commentary continues to favor Microsoft as a long-term holding because of its diversified software ecosystem, recurring revenue, cloud position, and favorable earnings outlook. Its latest reported quarter also showed revenue growth and earnings well above expectations. Why Microsoft Is a Top Stock for the Long-Term
• Positive Sentiment: Microsoft’s partnerships and investments in Gulf data-center infrastructure highlight its efforts to expand global AI capacity. Separately, company representatives said AI could create new employment opportunities rather than only eliminate jobs, supporting broader adoption narratives. Microsoft and Schneider Electric Bet Big on the Gulf
• Neutral Sentiment: Analysts are focused on a key cash-flow line item, likely reflecting the impact of elevated AI-related capital expenditures. Strong investment may expand future growth but could constrain free cash flow and delay a breakout to a new high. Microsoft Is Close to a New All-Time High
• Negative Sentiment: Microsoft’s next-generation Xbox, Project Helix, could face a pricing challenge if advanced hardware pushes the console toward $1,000. A high price could limit adoption and pressure the gaming business, although Microsoft is considering affordability measures. Microsoft Has a $1,000 Problem With Its Next Xbox
• Negative Sentiment: Recent Outlook and Exchange Online outages, alongside a separate ChatGPT Work disruption, raise concerns about reliability for Microsoft’s productivity and cloud services. The incidents have not materially undermined reported results but remain a reputational and retention risk. Microsoft’s Outlook and OpenAI’s ChatGPT Work Both Broke the Same Day

Insider Transactions at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of Microsoft 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 completion of the sale, the chief executive officer directly owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 105,835 shares of company stock valued at $52,468,575 in the last quarter. Insiders own 0.03% of the company's stock.

Microsoft Stock Performance

NASDAQ:MSFT opened at $499.70 on Tuesday. The business's 50-day moving average price is $447.15 and its two-hundred day moving average price is $416.63. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The stock has a market cap of $3.71 trillion, a P/E ratio of 27.82, a PEG ratio of 1.61 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company's revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the company posted $3.65 EPS. As a group, equities analysts predict that Microsoft Corporation will post 19.59 EPS for the current fiscal year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft's payout ratio is currently 20.27%.

Wall Street Analyst Weigh In

Several brokerages have commented on MSFT. The Goldman Sachs Group restated a "buy" rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Bank of America increased their price target on shares of Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a report on Tuesday, September 1st. Citigroup restated a "market outperform" rating on shares of Microsoft in a research report on Monday, August 31st. Piper Sandler boosted their price objective on shares of Microsoft from $540.00 to $550.00 and gave the company an "overweight" rating in a research note on Tuesday, July 28th. Finally, DA Davidson reaffirmed a "buy" rating and set a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $564.27.

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).

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