Eleva Capital SAS Purchases New Shares in Microsoft Corporation $MSFT

Key Points

• Eleva Capital SAS initiated a Microsoft position, buying 21,817 shares worth about $11.19 million in the third quarter. Microsoft now represents 9.4% of the firm’s portfolio and is its fourth-largest holding.
• Microsoft’s latest quarterly results beat estimates, with earnings of $4.89 per share and revenue of $92.28 billion, up 18.8% year over year. The company also raised its quarterly dividend from $0.91 to $0.98 per share.
• Microsoft is reportedly scaling back some rented AI-computing capacity and consolidating neocloud partnerships. The moves may help manage costs, but investors are weighing what they signal about AI demand, data-center spending, and returns.

Eleva Capital SAS purchased a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 21,817 shares of the software giant's stock, valued at approximately $11,190,000. Microsoft comprises approximately 9.4% of Eleva Capital SAS's holdings, making the stock its 4th largest position.

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

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s free-cash-flow position may offer some reassurance: an analysis notes that several other major AI hyperscalers are generating negative free cash flow, while Microsoft is generating positive cash flow. Is Microsoft Getting Enough Credit for Better Free Cash Flow Compared to its Peers?
• Neutral Sentiment: Reports say Microsoft plans to reduce the number of neocloud partners it uses, wind down rented AI capacity from Oracle, and declined a Texas data-center expansion with Nscale. This could help control costs and give Microsoft tighter oversight as it builds its own infrastructure, but the implications for capacity growth remain uncertain. Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain
• Negative Sentiment: Investors may read the canceled or reduced AI-computing commitments as a sign that Microsoft is reassessing demand, project timing, or returns on its data-center spending. The shift comes as reports highlight construction delays and the rising cost of meeting a growing AI backlog, intensifying scrutiny of whether heavy investment will pay off. Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
• Negative Sentiment: Broader unease around AI spending and tech-market volatility may also weigh on MSFT, as investors question the scale of data-center investment relative to future cash returns. Microsoft and Oracle's AI ambitions are suddenly a lot more expensive

Microsoft Trading Down 1.0%

NASDAQ MSFT opened at $530.61 on Friday. The stock has a 50-day moving average of $516.65 and a 200-day moving average of $440.18. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $559.15. The company has a current ratio of 1.22, a quick ratio of 1.21 and a debt-to-equity ratio of 0.07. The firm has a market cap of $3.94 trillion, a PE ratio of 27.69, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating the consensus estimate of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The company had revenue of $92.28 billion for the quarter, compared to the consensus estimate of $90.62 billion. During the same period in the prior year, the firm posted $4.13 EPS. The firm's revenue was up 18.8% compared to the same quarter last year. As a group, sell-side analysts forecast that Microsoft Corporation will post 19.89 EPS for the current year.

Microsoft Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.98 dividend. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio is 19.00%.

Analyst Ratings Changes

Several brokerages have weighed in on MSFT. Royal Bank Of Canada reissued an "outperform" rating and set a $640.00 price objective on shares of Microsoft in a research note on Thursday, October 29th. Melius Research raised Microsoft from a "hold" rating to a "buy" rating and set a $665.00 price objective on the stock in a report on Monday, October 5th. Griffin Securities downgraded shares of Microsoft from a "buy" rating to a "neutral" rating in a research note on Thursday, October 29th. Sanford C. Bernstein raised their price target on shares of Microsoft from $662.00 to $722.00 and gave the company an "outperform" rating in a research note on Thursday, October 29th. Finally, DA Davidson lifted their target price on shares of Microsoft from $550.00 to $650.00 and gave the company a "buy" rating in a research note on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, Microsoft currently has a consensus rating of "Moderate Buy" and an average price target of $609.54.

Insider Activity at Microsoft

In related news, EVP Amy Hood sold 41,674 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares of the company's stock, valued at $265,888,830.48. This represents a 7.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was 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 owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 135,504 shares of company stock valued at $68,138,024. Insiders own 0.03% of the company's stock.

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, and digital solutions for consumers, businesses, and public-sector organizations. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington.

Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.

Microsoft serves customers around the world through its products, online platforms, and network of business partners.

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