Central Pacific Bank Trust Division Sells 11,102 Shares of Microsoft Corporation $MSFT

Central Pacific Bank Trust Division cut its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 24.5% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 34,284 shares of the software giant's stock after selling 11,102 shares during the quarter. Microsoft makes up approximately 1.3% of Central Pacific Bank Trust Division's holdings, making the stock its 11th biggest holding. Central Pacific Bank Trust Division's holdings in Microsoft were worth $12,789,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Longfellow Investment Management Co. LLC raised its holdings 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 valued at $29,000 after acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors bought a new position in Microsoft during the 4th quarter worth about $34,000. Timmons Wealth Management LLC bought a new position in Microsoft during the 4th quarter worth about $36,000. Fairway Wealth LLC increased its position in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares during the period. Finally, University of Illinois Foundation purchased a new position in Microsoft during the 2nd quarter valued at about $50,000. Institutional investors own 71.13% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure demand remains a major support. Microsoft’s reported $678 billion backlog of contracted cloud commitments provides visibility for future revenue and helps defend the company’s aggressive AI infrastructure spending. Microsoft Stock Rises as $678 Billion Backlog Supports AI Spending
• Positive Sentiment: Meta is becoming a significant Azure AI customer. Meta reportedly spends hundreds of millions of dollars annually on Azure and consumes large volumes of AI tokens, reinforcing demand for Microsoft’s cloud and AI services. Meta Platforms Emerges as a Major Microsoft Azure AI Client
• Positive Sentiment: Microsoft continues investing in AI capabilities. The company is increasing fiscal 2027 capital expenditures to expand infrastructure, while internally developed AI chips could improve efficiency and margins over time. Its latest quarterly results also showed strong earnings and 17.7% year-over-year revenue growth.
• Neutral Sentiment: Microsoft is hiring AI-capable legal talent and reportedly offering compensation of up to $279,000 for a legal engineer. The move highlights the company’s effort to integrate AI into commercial and compliance operations but is unlikely to materially affect near-term results. Microsoft Will Pay Up to $279K for a Lawyer Who Can Build AI
• Negative Sentiment: Higher yields are pressuring long-duration AI valuations. Rising interest rates reduce the present value of projected future AI profits, contributing to market questions despite Microsoft’s backlog and operating strength. Microsoft Slips as 4.68% Yield Tests Its $678 Billion Backlog
• Negative Sentiment: Technology stocks broadly declined Thursday afternoon, adding sector-driven pressure to MSFT. Investors are also monitoring concerns that large AI companies buying services from one another could create circular demand signals.
• Negative Sentiment: Microsoft faces geopolitical and execution risks. China is accelerating its move away from Windows, while continued AI capital spending raises questions about returns on investment. Recent insider activity also shows executive selling without reported purchases, a modest negative sentiment signal.

Analyst Ratings Changes

Several brokerages have recently weighed in on MSFT. Benchmark reaffirmed a "buy" rating on shares of Microsoft in a research report on Friday, July 24th. Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a report on Thursday, July 30th. Sanford C. Bernstein set a $660.00 target price on Microsoft in a report on Monday, August 10th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $640.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Finally, DA Davidson reiterated a "buy" rating and issued a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $560.27.

Insider Activity at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 37,310 shares of company stock worth $17,256,219. 0.03% of the stock is owned by insiders.

Microsoft Trading Down 0.7%

Shares of NASDAQ:MSFT opened at $481.15 on Friday. The business's 50-day moving average is $417.76 and its 200 day moving average is $408.78. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a market capitalization of $3.57 trillion, a P/E ratio of 26.79, a P/E/G ratio of 1.56 and a beta of 1.11.

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 for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter last year, the company earned $3.65 earnings per share. The company's quarterly revenue was up 17.7% on a year-over-year basis. On average, research analysts predict that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft's payout ratio is currently 20.27%.

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).

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