Diversified Management Inc. Sells 4,855 Shares of Microsoft Corporation $MSFT

Key Points

• Diversified Management Inc. cut its Microsoft position by 33.2% in the second quarter, selling 4,855 shares and retaining 9,768 shares valued at approximately $3.64 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, beating analyst estimates, with revenue rising 17.7% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $560.27.
• Microsoft continues expanding its AI and cloud operations through partnerships and new computing deployments, while insiders sold 37,310 shares worth approximately $17.3 million during the latest quarter.

Diversified Management Inc. trimmed its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 33.2% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 9,768 shares of the software giant's stock after selling 4,855 shares during the quarter. Microsoft accounts for 0.8% of Diversified Management Inc.'s investment portfolio, making the stock its 25th largest holding. Diversified Management Inc.'s holdings in Microsoft were worth $3,644,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Longfellow Investment Management Co. LLC grew its holdings 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 valued at $29,000 after buying an additional 20 shares during the last quarter. Bernzott Capital Advisors acquired a new stake in shares of Microsoft in the 4th quarter worth about $34,000. Timmons Wealth Management LLC bought a new position in Microsoft in the 4th quarter valued at about $36,000. Fairway Wealth LLC boosted its stake 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 last quarter. Finally, LSV Asset Management acquired a new position in Microsoft during the 4th quarter valued at about $44,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft announced a long-term partnership with Saudi Arabia’s HUMAIN to bring Arabic-language ALLAM AI models to Microsoft Foundry and Microsoft 365 Copilot. The agreement strengthens Microsoft’s enterprise-AI reach in the Middle East and could support additional Azure and Copilot adoption. Microsoft Expands Middle East AI Footprint Through Long-Term HUMAIN Deal
• Positive Sentiment: Microsoft and ChronoScale reportedly plan a 50-megawatt AI-compute deployment using NVIDIA GB300 systems. The project signals continued demand for Microsoft’s cloud and AI infrastructure, although it also implies substantial near-term capital spending. ChronoScale and Microsoft Plan 50 MW AI Compute Deployment
• Positive Sentiment: Microsoft’s Superintelligence team is pursuing internally developed frontier models and greater AI self-sufficiency. Building proprietary models could reduce dependence on outside providers and improve long-term economics if execution is successful. Microsoft AI Self-Sufficiency Strategy
• Positive Sentiment: Investor Bill Ackman’s Pershing Square reportedly made Microsoft its largest AI-related holding after reducing Alphabet exposure, adding an influential vote of confidence in Microsoft’s cloud, AI and backlog outlook. Bill Ackman’s Pershing Square Microsoft Investment

Insider Activity at Microsoft

In related news, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 37,310 shares of company stock worth $17,256,219. 0.03% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MSFT. Royal Bank Of Canada reissued an "outperform" rating and issued a $640.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Microsoft in a research report on Monday, May 4th. Wolfe Research reiterated an "outperform" rating and set a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Cantor Fitzgerald increased their price target on Microsoft from $502.00 to $522.00 and gave the company an "overweight" rating in a research report on Monday, July 27th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $560.27.

Microsoft Price Performance

MSFT opened at $505.06 on Friday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The firm has a 50-day moving average of $428.19 and a 200 day moving average of $411.73. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The firm has a market cap of $3.75 trillion, a P/E ratio of 28.12, a PEG ratio of 1.60 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The business 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 revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.65 earnings per share. On average, research analysts expect that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

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

Microsoft 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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