Cullinan Associates Inc. Sells 16,758 Shares of Microsoft Corporation $MSFT

Key Points

• Cullinan Associates cut its Microsoft stake by 10.7%, selling 16,758 shares and retaining 139,649 shares valued at approximately $52.1 million. Microsoft remains the firm’s third-largest holding, representing about 3.9% of its portfolio.
• Institutional investors own 71.13% of Microsoft, while insiders have sold roughly 150,314 shares worth $75.4 million over the past 90 days. Recent sales included transactions by executives Takeshi Numoto and Judson Althoff.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $592.15. Microsoft also reported quarterly earnings and revenue above expectations and raised its quarterly dividend to $0.98 per share.

Cullinan Associates Inc. cut its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 10.7% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 139,649 shares of the software giant's stock after selling 16,758 shares during the period. Microsoft accounts for approximately 3.9% of Cullinan Associates Inc.'s holdings, making the stock its 3rd biggest holding. Cullinan Associates Inc.'s holdings in Microsoft were worth $52,092,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of the stock. Bank of America Corp DE bought a new position in Microsoft during the second quarter valued at approximately $27,338,370,000. Legal & General Group Plc acquired a new stake in shares of Microsoft during the 2nd quarter worth approximately $18,306,443,000. Jupiter Topco LLC bought a new stake in shares of Microsoft during the second quarter valued at approximately $6,928,664,000. Canada Pension Plan Investment Board bought a new stake in Microsoft in the second quarter valued at about $5,653,812,000. Finally, The Manufacturers Life Insurance Company bought a new position in shares of Microsoft during the 2nd quarter worth approximately $4,000,706,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the 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 sale, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is currently owned by company insiders.

Analyst Ratings Changes

MSFT has been the subject of a number of research reports. Cantor Fitzgerald raised their target price on Microsoft from $522.00 to $608.00 and gave the company an "overweight" rating in a research note on Monday, September 21st. CLSA reaffirmed an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Phillip Securities cut shares of Microsoft from a "moderate buy" rating to a "hold" rating in a research note on Monday, October 12th. Bank of America lifted their target price on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. Finally, Tigress Financial upped their target price on Microsoft from $680.00 to $690.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $592.15.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Microsoft Trading Up 0.7%

Shares of MSFT stock opened at $524.51 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm has a market cap of $3.90 trillion, a P/E ratio of 29.20, a PEG ratio of 1.67 and a beta of 1.10. The company has a 50 day moving average of $508.51 and a 200-day moving average of $446.17. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.65 earnings per share. Sell-side analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

Microsoft Company 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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