Formuepleje A S Sells 37,873 Shares of Microsoft Corporation $MSFT

Key Points

• Formuepleje A S reduced its Microsoft stake by 18.7%, selling 37,873 shares and retaining 165,010 shares valued at approximately $61.6 million. Microsoft represents about 4.8% of the fund’s portfolio, while institutional investors collectively own 71.13% of the stock.
• Microsoft reported stronger-than-expected quarterly results, with $92.28 billion in revenue and $4.89 in EPS; Azure revenue rose 48% year over year. Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $609.54.
• Investors are weighing Microsoft’s AI growth against rising costs and capital requirements, including planned AI spending of roughly $170 billion and a potential $25 billion bond offering. CEO Satya Nadella and other insiders also sold shares, while the company raised its quarterly dividend to $0.98 per share.

Formuepleje A S trimmed its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 18.7% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 165,010 shares of the software giant's stock after selling 37,873 shares during the quarter. Microsoft accounts for about 4.8% of Formuepleje A S's portfolio, making the stock its 8th largest position. Formuepleje A S's holdings in Microsoft were worth $61,552,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Montgomery Financial Services LLC acquired a new stake in shares of Microsoft in the 2nd quarter worth $26,000. Frankly Finances LLC acquired a new stake in shares of Microsoft in the second quarter valued at $35,000. Bard Associates Inc. purchased a new position in Microsoft during the 2nd quarter valued at about $37,000. PMV Capital Advisers LLC purchased a new stake in Microsoft during the second quarter worth about $38,000. Finally, Fiduciary Advisors Inc. grew its holdings in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after purchasing an additional 34 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were 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 directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the business's 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 completion of the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 in the last ninety days. 0.03% of the stock is owned by insiders.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $521.91 on Monday. The firm has a market cap of $3.88 trillion, a price-to-earnings ratio of 27.24, a PEG ratio of 1.61 and a beta of 1.05. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $551.15. The stock's 50-day simple moving average is $512.91 and its 200-day simple moving average is $438.43.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The firm had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. During the same quarter in the previous year, the company posted $4.13 earnings per share. The firm's revenue was up 18.8% on a year-over-year basis. As a group, equities analysts anticipate that Microsoft Corporation will post 19.79 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The business 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 a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is 19.00%.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on MSFT. Citigroup reiterated a "market outperform" rating on shares of Microsoft in a research note on Thursday. Rothschild & Co Redburn set a $440.00 target price on shares of Microsoft in a research note on Monday, September 21st. Cantor Fitzgerald lifted their price target on shares of Microsoft from $608.00 to $630.00 and gave the stock an "overweight" rating in a research note on Thursday. William Blair started coverage on shares of Microsoft in a report on Monday, October 5th. They issued an "outperform" rating on the stock. Finally, Truist Financial reissued a "buy" rating and issued a $630.00 target price (up from $600.00) on shares of Microsoft in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $609.54.

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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