Conway Capital Management Inc. Sells 1,375 Shares of Microsoft Corporation $MSFT

Key Points

• Conway Capital Management reduced its Microsoft position by 11.6%, selling 1,375 shares and retaining 10,445 shares valued at approximately $3.9 million. Institutional investors overall own 71.13% of Microsoft.
• Microsoft reported quarterly EPS of $4.89 and revenue of $92.28 billion, exceeding analyst expectations, with revenue up 18.8% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $609.54.
• Microsoft raised its quarterly dividend to $0.98 per share, or $3.92 annually, representing a 0.7% yield. Investors remain focused on the company’s substantial AI and data-center spending, including a potential $25 billion bond offering and concerns about spending returns and OpenAI revenue concentration.

Conway Capital Management Inc. lowered its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 11.6% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 10,445 shares of the software giant's stock after selling 1,375 shares during the quarter. Microsoft accounts for approximately 1.7% of Conway Capital Management Inc.'s investment portfolio, making the stock its 12th biggest holding. Conway Capital Management Inc.'s holdings in Microsoft were worth $3,896,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Amundi increased its position in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant's stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Microsoft by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after buying an additional 2,784,809 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Microsoft by 64.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock worth $8,982,083,000 after buying an additional 9,493,778 shares during the last quarter. California Public Employees Retirement System grew its position in Microsoft by 3.7% during the first quarter. California Public Employees Retirement System now owns 21,906,086 shares of the software giant's stock valued at $8,108,976,000 after buying an additional 781,973 shares during the period. Finally, Swiss National Bank grew its position in Microsoft by 7.1% during the first quarter. Swiss National Bank now owns 20,721,690 shares of the software giant's stock valued at $7,670,548,000 after buying an additional 1,371,040 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have commented on MSFT. Jefferies Financial Group lifted their price objective on shares of Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a research report on Wednesday, October 14th. William Blair began coverage on shares of Microsoft in a research report on Monday, October 5th. They set an "outperform" rating for the company. TD Cowen raised their price target on shares of Microsoft from $625.00 to $650.00 and gave the stock a "buy" rating in a research note on Thursday. Raymond James Financial set a $650.00 price target on shares of Microsoft in a report on Thursday. Finally, BMO Capital Markets set a $610.00 price objective on Microsoft in a research note on Thursday. Forty-five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $609.54.

Microsoft Trading Down 0.2%

Shares of MSFT stock opened at $530.14 on Friday. The company's fifty day simple moving average is $512.10 and its two-hundred day simple moving average is $438.21. 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 $551.15. The stock has a market capitalization of $3.94 trillion, a price-to-earnings ratio of 27.67, a PEG ratio of 1.67 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.72 by $0.17. The firm had revenue of $92.28 billion for the quarter, compared to the consensus estimate of $90.62 billion. Microsoft had a return on equity of 32.31% and a net margin of 41.17%. The business's quarterly revenue was up 18.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $4.13 earnings per share. As a group, analysts anticipate that Microsoft Corporation will post 19.66 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. Investors of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio is presently 20.27%.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reported fiscal Q1 revenue of $92.28 billion and adjusted earnings of $4.89 per share, exceeding analyst estimates. Revenue grew 18.8% year over year, while Azure revenue surged 48% to approximately $33.2 billion, reinforcing the company’s position as a leading beneficiary of enterprise AI adoption. Microsoft beats quarterly cloud revenue estimates
• Positive Sentiment: Strong cloud growth, a $677 billion commercial backlog and expanding Copilot and AI-agent adoption have prompted several analysts to raise their price targets, including Citigroup’s $680 target and RBC’s $640 target. Microsoft stock slips despite strong Azure growth
• Positive Sentiment: Microsoft generated approximately $18.6 billion in free cash flow, giving it substantially more flexibility than some rivals to fund AI investments without relying exclusively on debt. Analysts argue that the spending should be judged against the company’s cash generation and monetization potential. Microsoft Q1 capex and free cash flow
• Positive Sentiment: Microsoft is broadening Copilot distribution through education and finance-workflow integrations, while its AI-agent governance tools are attracting interest from major developers. These moves support the case for multiple long-term AI revenue streams. Microsoft expands Copilot in education
• Neutral Sentiment: Microsoft plans to issue as much as $25 billion in bonds, its first major U.S. bond sale since 2017, to support data-center and AI investment. Strong demand for the offering highlights investor confidence, but the borrowing also focuses attention on the scale of future capital requirements. Microsoft expects to raise $25 billion in bond sale
• Negative Sentiment: Capital expenditures came in below expectations, and Microsoft reduced its forecast to roughly $170 billion from $175 billion. Management attributed the shortfall to third-party chip and data-center capacity delays, but investors remain concerned that elevated spending may pressure returns and margins. AI buildout capex estimates
• Negative Sentiment: About $10 billion of quarterly revenue was tied to commercial arrangements with OpenAI, or nearly 11% of total revenue, increasing concentration and counterparty-risk concerns as the companies increasingly compete in AI services. Microsoft recorded $10 billion in revenue from OpenAI

Insiders Place Their Bets

In other news, EVP Amy Hood sold 7,305 shares of Microsoft stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the completion of the sale, the executive vice president directly owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. The trade was a 1.30% 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 Microsoft stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 150,314 shares of company stock worth $75,404,992 over the last three months. Corporate insiders own 0.03% of the company's stock.

Microsoft Profile

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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