Microsoft Corporation $MSFT Holdings Decreased by Orca Investment Management LLC

Key Points

• Orca Investment Management cut its Microsoft position by 5.4% in the second quarter, selling 1,420 shares and retaining 24,920 shares worth approximately $9.3 million. Microsoft remains Orca’s third-largest holding and represents 6.7% of its portfolio.
• Microsoft reported stronger-than-expected quarterly results, with $4.74 in EPS and $90.01 billion in revenue, up 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, or $3.92 annualized.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $571.18, supported by Azure and AI growth. Key risks include heavy AI infrastructure spending, valuation concerns, market concentration and recent insider selling.

Orca Investment Management LLC decreased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.4% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 24,920 shares of the software giant's stock after selling 1,420 shares during the quarter. Microsoft accounts for 6.7% of Orca Investment Management LLC's portfolio, making the stock its 3rd largest position. Orca Investment Management LLC's holdings in Microsoft were worth $9,296,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Friedenthal Financial boosted its stake in shares of Microsoft by 6.2% in the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant's stock valued at $160,000 after purchasing an additional 25 shares in the last quarter. Sequent Planning LLC grew its holdings 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 purchasing an additional 25 shares during the last quarter. Riverpoint Wealth Management Holdings LLC raised its position in Microsoft by 0.5% in the 1st 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 during the period. American Investment Services Inc. lifted its stake in 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. Finally, REAP Financial Group LLC lifted its stake in Microsoft by 1.1% in the second quarter. REAP Financial Group LLC now owns 2,453 shares of the software giant's stock worth $915,000 after purchasing an additional 26 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

Shares of Microsoft stock opened at $517.53 on Monday. 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 $3.84 trillion, a P/E ratio of 28.82, a PEG ratio of 1.66 and a beta of 1.10. The company's fifty day simple moving average is $490.08 and its two-hundred day simple moving average is $430.19.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the company posted $3.65 EPS. Research analysts anticipate that Microsoft Corporation will post 19.62 EPS for the current year.

Microsoft Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 annualized dividend and a 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 (DPR) is 20.27%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. KeyCorp restated an "overweight" rating on shares of Microsoft in a research report on Thursday, September 3rd. Phillip Securities lowered Microsoft from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. BMO Capital Markets boosted their target price on Microsoft from $500.00 to $515.00 and gave the company an "outperform" rating in a research note on Thursday, July 30th. Weiss Ratings upgraded Microsoft from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, August 27th. Finally, Needham & Company LLC assumed coverage on Microsoft in a research report on Wednesday, September 23rd. They set a "buy" rating on the stock. Forty-three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $571.18.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand
• Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth
• Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft
• Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models
• Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show
• Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential

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. In the last 90 days, insiders sold 143,009 shares of company stock valued at $71,420,699. Insiders own 0.03% of the company's stock.

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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