Microsoft Corporation $MSFT Holdings Cut by M.D. Sass LLC

Key Points

• M.D. Sass LLC cut its Microsoft stake by 42.4% in the second quarter, selling 4,112 shares and retaining 5,596 shares valued at approximately $2.09 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported a strong quarter, with earnings of $4.74 per share and revenue of $90.01 billion, surpassing estimates; revenue increased 17.7% year over year. Analysts remain broadly bullish, with a consensus rating of “Moderate Buy” and an average price target of $578.73.
• Microsoft raised its quarterly dividend to $0.98 per share, or $3.92 annualized, representing a 0.7% yield. The stock recently traded near its 12-month high, supporting a market capitalization of approximately $3.97 trillion.

M.D. Sass LLC reduced its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 42.4% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,596 shares of the software giant's stock after selling 4,112 shares during the period. M.D. Sass LLC's holdings in Microsoft were worth $2,087,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in MSFT. Friedenthal Financial increased its stake in Microsoft by 6.2% in the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant's stock worth $160,000 after acquiring an additional 25 shares during the last quarter. Sequent Planning LLC boosted its position in shares of Microsoft by 0.7% during the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock valued at $1,382,000 after acquiring an additional 25 shares during the last quarter. Lee Johnson Capital Management LLC boosted its position in shares of Microsoft by 3.8% during the 2nd quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock valued at $256,000 after acquiring an additional 25 shares during the last quarter. Riverpoint Wealth Management Holdings LLC grew its holdings in shares of Microsoft by 0.5% during the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after purchasing an additional 26 shares in the last quarter. Finally, American Investment Services Inc. increased its position in shares of Microsoft by 3.1% in the first quarter. American Investment Services Inc. now owns 876 shares of the software giant's stock worth $324,000 after purchasing an additional 26 shares during the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Wall Street Analyst Weigh In

Several brokerages have issued reports on MSFT. Tigress Financial lifted their target price on shares of Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. restated a "buy" rating on shares of Microsoft in a research report on Monday, September 28th. BMO Capital Markets started coverage on shares of Microsoft in a report on Monday. They set an "outperform" rating for the company. Argus lowered their price target on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a research report on Friday, July 10th. Finally, Melius Research set a $665.00 price target on Microsoft and gave the stock a "buy" rating in a research note on Monday. Forty-two equities research 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. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $578.73.

Microsoft Stock Up 2.4%

Shares of Microsoft stock opened at $535.07 on Friday. The company has a current ratio of 1.23, a quick ratio of 1.22 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. The company has a market cap of $3.97 trillion, a P/E ratio of 29.79, a PEG ratio of 1.68 and a beta of 1.10. The company's fifty day simple moving average is $501.15 and its two-hundred day simple moving average is $434.73.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the previous year, the firm posted $3.65 EPS. The company's revenue for the quarter was up 17.7% compared to the same quarter last year. Research analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The company 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 dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is presently 20.27%.

Insider Transactions at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The sale 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, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 143,009 shares of company stock worth $71,420,699 over the last quarter. Insiders own 0.03% of the company's stock.

About Microsoft

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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