Jackson Wealth Management LLC Sells 124,508 Shares of Microsoft Corporation $MSFT

Key Points

• Jackson Wealth Management cut its Microsoft stake by 91.6% in the second quarter, selling 124,508 shares and retaining 11,376 shares worth approximately $4.24 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with $4.74 in earnings per share and $90.01 billion in revenue, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share.
• Analyst sentiment remains broadly positive, with 43 Buy ratings and a consensus price target of $592.15, although some insiders—including CEO Satya Nadella—have sold shares and concerns remain about AI infrastructure spending and valuation.

Jackson Wealth Management LLC lessened its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 91.6% during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 11,376 shares of the software giant's stock after selling 124,508 shares during the quarter. Microsoft makes up approximately 2.5% of Jackson Wealth Management LLC's holdings, making the stock its 9th biggest holding. Jackson Wealth Management LLC's holdings in Microsoft were worth $4,243,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. Frankly Finances LLC acquired a new position in shares of Microsoft in the 2nd quarter worth approximately $35,000. Bard Associates Inc. acquired a new stake in shares of Microsoft during the 2nd quarter valued at approximately $37,000. PMV Capital Advisers LLC acquired a new stake in shares of Microsoft during the 2nd quarter valued at approximately $38,000. Fiduciary Advisors Inc. lifted its stake in Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after purchasing an additional 34 shares during the last quarter. Finally, Persistent Asset Partners Ltd bought a new position in Microsoft during the second quarter worth $60,000. Institutional investors own 71.13% of the company's stock.

Insider Activity

In related news, CEO Satya Nadella sold 86,525 shares of the 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 sale, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 Microsoft stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by insiders.

Microsoft Stock Performance

Shares of NASDAQ MSFT opened at $524.51 on Monday. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a market cap of $3.90 trillion, a price-to-earnings ratio of 29.20, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock's 50 day simple moving average is $508.51 and its 200 day simple moving average is $446.69.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The firm 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 revenue was up 17.7% on a year-over-year basis. During the same period in the prior year, the business earned $3.65 EPS. Equities research analysts expect that Microsoft Corporation will post 19.66 EPS for the current year.

Microsoft Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is 20.27%.

Analysts Set New Price Targets

MSFT has been the subject of a number of research reports. CLSA reaffirmed an "outperform" rating on shares of Microsoft in a report on Thursday, July 30th. William Blair began coverage on shares of Microsoft in a report on Monday, October 5th. They set an "outperform" rating on the stock. Oppenheimer increased their target price on shares of Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a report on Tuesday, September 22nd. TD Cowen raised their price target on shares of Microsoft from $540.00 to $625.00 and gave the stock a "buy" rating in a research report on Thursday, October 15th. Finally, Morgan Stanley lowered shares of Microsoft from an "overweight" rating to a "negative" rating in a report on Monday, October 5th. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $592.15.

Microsoft News Roundup

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 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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