GUARDCAP ASSET MANAGEMENT Ltd Sells 50,176 Shares of Microsoft Corporation $MSFT

Key Points

• GUARDCAP ASSET MANAGEMENT reduced its Microsoft stake by 16.4% in the second quarter, selling 50,176 shares and retaining 256,389 shares valued at approximately $96.7 million. Microsoft remains 6.9% of the firm’s portfolio.
• Microsoft’s growth outlook remains supported by Azure expansion, Copilot adoption and enterprise AI demand. The company recently exceeded quarterly earnings and revenue expectations, while most analysts maintain bullish ratings with a consensus price target of $569.29.
• Investors are also weighing AI-related costs, valuation, privacy concerns and potential competition from OpenAI. Microsoft raised its quarterly dividend to $0.98, while executives and other insiders have recently sold shares.

GUARDCAP ASSET MANAGEMENT Ltd decreased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 16.4% during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor owned 256,389 shares of the software giant's stock after selling 50,176 shares during the period. Microsoft comprises 6.9% of GUARDCAP ASSET MANAGEMENT Ltd's portfolio, making the stock its 8th biggest position. GUARDCAP ASSET MANAGEMENT Ltd's holdings in Microsoft were worth $96,672,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in MSFT. Symphony Financial Ltd. Co. raised its stake in shares of Microsoft by 12.2% during the 2nd quarter. Symphony Financial Ltd. Co. now owns 51,587 shares of the software giant's stock worth $19,042,000 after purchasing an additional 5,609 shares in the last quarter. St. Johns Investment Management Company LLC grew its stake in shares of Microsoft by 4.1% in the second quarter. St. Johns Investment Management Company LLC now owns 21,223 shares of the software giant's stock valued at $7,917,000 after buying an additional 827 shares in the last quarter. Archer Investment Corp increased its holdings in Microsoft by 11.2% during the second quarter. Archer Investment Corp now owns 19,471 shares of the software giant's stock worth $7,263,000 after buying an additional 1,957 shares during the last quarter. Eagle Bay Advisors LLC increased its holdings in Microsoft by 5.3% during the second quarter. Eagle Bay Advisors LLC now owns 8,894 shares of the software giant's stock worth $3,317,000 after buying an additional 450 shares during the last quarter. Finally, University of Texas Texas AM Investment Management Co. raised its position in Microsoft by 8.2% during the second quarter. University of Texas Texas AM Investment Management Co. now owns 67,743 shares of the software giant's stock worth $25,269,000 after acquiring an additional 5,115 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Copilot remains the primary catalyst. Jefferies reiterated its bullish view, citing Microsoft’s redesigned Copilot, new usage-based revenue opportunities and potential for paid Copilot seats to double over the next year. Enterprise AI adoption, however, is expected to build gradually. Jefferies Doubles Down on Microsoft's Copilot Opportunity
• Positive Sentiment: Analysts see further upside. JPMorgan maintained a Buy rating with a $625 target, while RBC reportedly set a $640 target, supported by Azure growth, Copilot adoption and Microsoft’s expanding AI infrastructure. The stock is also on track for its strongest quarterly performance in decades, reflecting a market “flight to quality.” Microsoft Stock Surges Past $500
• Positive Sentiment: Azure and enterprise demand support the long-term case. Recent commentary points to Azure growth above 40%, rapidly increasing Copilot seats and a commercial backlog approaching $700 billion. Microsoft is also bringing OpenAI’s autonomous “Dots” AI workers into its enterprise security ecosystem, potentially expanding cloud and software consumption. Microsoft Brings OpenAI's Autonomous Dots AI Workers Into the Enterprise
• Neutral Sentiment: AI policy developments remain mixed. President Trump reaffirmed support for data centers and announced voluntary AI controls with Microsoft and other technology companies, potentially easing regulatory concerns while leaving uncertainty over whether voluntary safeguards will be sufficient. At A.I. Event, Trump Asks Meta, OpenAI and Microsoft to Make Safety Decisions Themselves
• Negative Sentiment: Privacy and competitive risks are weighing on sentiment. Reports that humans may review some Copilot prompts have raised data-privacy concerns. OpenAI is also launching workplace features that increasingly resemble Microsoft Office, intensifying the risk that a key partner could compete directly with Microsoft’s software franchise. OpenAI Takes on Microsoft With a ChatGPT Office Suite
• Negative Sentiment: Investors are questioning the cost and valuation of the AI buildout. Microsoft is reducing staff while committing heavily to data centers, and some analysts argue that cash-flow benefits may take longer to materialize. After its rally, elevated expectations leave less room for execution setbacks.

Insider Buying and Selling at Microsoft

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company's stock, valued at $49,007,086.83. This represents a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 143,009 shares of company stock valued at $71,420,699 in the last three months. 0.03% of the stock is owned by insiders.

Microsoft Trading Down 0.1%

Shares of NASDAQ:MSFT opened at $508.96 on Wednesday. The stock has a market cap of $3.78 trillion, a PE ratio of 28.34, a P/E/G ratio of 1.64 and a beta of 1.11. The business has a 50 day moving average of $482.29 and a 200-day moving average of $427.75. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. 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 released 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 business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm's quarterly revenue was up 17.7% on a year-over-year basis. During the same period in the previous year, the company posted $3.65 EPS. As a group, equities research analysts forecast that Microsoft Corporation will post 19.62 earnings per share for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is currently 20.27%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Raymond James Financial downgraded shares of Microsoft from a "moderate buy" rating to a "strong sell" rating in a research report on Wednesday, September 23rd. Wells Fargo & Company upped their target price on shares of Microsoft from $650.00 to $700.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Needham & Company LLC began coverage on shares of Microsoft in a research note on Wednesday, September 23rd. They issued a "buy" rating for the company. Citizens Jmp reiterated a "market outperform" rating and set a $550.00 price target on shares of Microsoft in a report on Tuesday, September 15th. Finally, JPMorgan Chase & Co. restated a "buy" rating on shares of Microsoft in a research note on Monday. Forty-three analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $569.29.

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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