Madrona Financial Services LLC Sells 3,523 Shares of Microsoft Corporation $MSFT

Key Points

• Madrona Financial Services reduced its Microsoft stake by 7.2%, selling 3,523 shares and retaining 45,389 shares valued at approximately $16.9 million. Microsoft remains 3.1% of the firm’s portfolio, while institutional investors collectively own 71.13% of the company.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, exceeding analyst estimates, with revenue up 17.7% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $564.27.
• Insiders have been net sellers, including CEO Satya Nadella’s sale of 86,525 shares worth about $43.4 million. Meanwhile, Microsoft’s planned expansion of AI data-center capacity supports long-term Azure growth but raises concerns about capital spending, free cash flow, valuation and returns.

Madrona Financial Services LLC cut its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 7.2% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 45,389 shares of the software giant's stock after selling 3,523 shares during the period. Microsoft accounts for 3.1% of Madrona Financial Services LLC's portfolio, making the stock its 13th biggest position. Madrona Financial Services LLC's holdings in Microsoft were worth $16,931,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Nova R Wealth Inc. lifted its stake in Microsoft by 6.0% in the second quarter. Nova R Wealth Inc. now owns 3,485 shares of the software giant's stock worth $1,300,000 after acquiring an additional 197 shares during the period. Ballentine Partners LLC increased its position in Microsoft by 0.7% during the 2nd quarter. Ballentine Partners LLC now owns 207,724 shares of the software giant's stock valued at $77,485,000 after purchasing an additional 1,515 shares during the period. Storen Legacy Partners LLC increased its position in Microsoft by 3.1% during the 2nd quarter. Storen Legacy Partners LLC now owns 5,128 shares of the software giant's stock valued at $1,913,000 after purchasing an additional 154 shares during the period. O Connor Financial Group LLC raised its holdings in Microsoft by 9.3% in the 2nd quarter. O Connor Financial Group LLC now owns 2,820 shares of the software giant's stock worth $1,052,000 after purchasing an additional 239 shares in the last quarter. Finally, Financial Synergies Wealth Advisors Inc. lifted its position in shares of Microsoft by 1.0% in the 2nd quarter. Financial Synergies Wealth Advisors Inc. now owns 5,724 shares of the software giant's stock worth $2,135,000 after purchasing an additional 56 shares during the period. Institutional investors own 71.13% of the company's stock.

Microsoft Stock Up 0.2%

Microsoft stock opened at $492.44 on Friday. The stock has a market cap of $3.66 trillion, a PE ratio of 27.42, a price-to-earnings-growth ratio of 1.58 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The stock has a fifty day moving average of $453.75 and a 200 day moving average of $418.62.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (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 analysts' expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period last year, the firm posted $3.65 earnings per share. As a group, sell-side analysts predict that Microsoft Corporation will post 19.59 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Mizuho cut their target price on shares of Microsoft from $515.00 to $490.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 15th. Royal Bank Of Canada restated an "outperform" rating on shares of Microsoft in a report on Thursday. Guggenheim reaffirmed a "buy" rating and set a $586.00 price objective on shares of Microsoft in a research report on Monday, July 27th. Scotiabank reiterated an "outperform" rating and set a $510.00 target price on shares of Microsoft in a report on Thursday, July 30th. Finally, Stifel Nicolaus increased their target price on Microsoft from $450.00 to $530.00 and gave the stock a "hold" rating in a research report on Friday, September 4th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Microsoft has a consensus rating of "Moderate Buy" and an average target price of $564.27.

Insider Transactions at Microsoft

In related news, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction that occurred 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 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 transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Satya Nadella sold 86,525 shares of the business'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 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 101,335 shares of company stock worth $50,655,795 in the last quarter. Company insiders own 0.03% of the company's stock.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reportedly plans to expand data-center capacity to approximately 38 gigawatts by 2032—more than triple its current footprint. The scale of the investment underscores management’s confidence in long-term Azure and AI demand, although the spending commitment also increases financial risk. Microsoft plans 38 gigawatts of data center capacity by 2032
• Positive Sentiment: Microsoft expanded its partnership with Talkdesk, allowing customers to buy contact-center AI software with existing Azure commitments through the Azure Marketplace. The arrangement could increase Azure consumption and make enterprise AI adoption easier. Talkdesk and Microsoft expand partnership
• Positive Sentiment: TrueFoundry’s AI Gateway is now available in the Microsoft Marketplace, adding another enterprise AI workload to Azure’s commercial ecosystem. Microsoft is also promoting enforceable privacy controls for schools using AI, which may support adoption in sensitive education markets. TrueFoundry AI Gateway availability
• Neutral Sentiment: Analysts and bullish commentary continue to point to Azure’s more-than-$100 billion annual revenue, rising Copilot adoption and Microsoft’s strong profitability as reasons the stock could outperform. However, the shares remain valued near 28 times earnings, leaving less room for disappointment. Microsoft bull case
• Negative Sentiment: Investors remain concerned that the AI infrastructure buildup will pressure free cash flow and returns on capital. A separate analysis downgraded Microsoft, arguing that the company’s capital-expenditure rotation does not support an optimistic outlook. Microsoft capital expenditure downgrade
• Negative Sentiment: Higher Treasury yields are weighing on expensive technology stocks, while Dynamics 365 Activate faces questions about slowing growth and softer bookings despite its effort to win Salesforce migrations. Microsoft also disclosed a record Patch Tuesday involving 974 vulnerabilities, including two exploited Windows zero-days, highlighting ongoing security and reputational risks. Microsoft Patch Tuesday vulnerabilities

Microsoft Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

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