Microsoft Corporation $MSFT is PICTET BANK & TRUST Ltd's 3rd Largest Position

Key Points

• PICTET BANK & TRUST Ltd increased its Microsoft stake by 6.6% in the second quarter to 22,238 shares worth approximately $8.26 million, making Microsoft its third-largest holding and 8.9% of its portfolio.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, exceeding analyst expectations, while revenue rose 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, an annualized yield of about 0.8%.
• Analyst sentiment remains broadly positive, with 43 Buy ratings and an average price target of $569.29, although some firms lowered ratings or targets and Microsoft insiders sold shares under pre-arranged trading plans.

PICTET BANK & TRUST Ltd grew its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.6% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 22,238 shares of the software giant's stock after purchasing an additional 1,374 shares during the period. Microsoft comprises approximately 8.9% of PICTET BANK & TRUST Ltd's investment portfolio, making the stock its 3rd largest holding. PICTET BANK & TRUST Ltd's holdings in Microsoft were worth $8,262,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently modified their holdings of MSFT. Frankly Finances LLC purchased a new position in Microsoft during the second quarter valued at $35,000. MidAtlantic Capital Management Inc. acquired a new position in shares of Microsoft during the 4th quarter worth about $59,000. Lifetime Wealth Management P.C. purchased a new position in Microsoft in the 4th quarter valued at about $101,000. Ramsey Quantitative Systems purchased a new position in Microsoft in the 2nd quarter valued at about $112,000. Finally, Midwest Capital Advisors LLC boosted its holdings in Microsoft by 16.6% in the 1st quarter. Midwest Capital Advisors LLC now owns 422 shares of the software giant's stock worth $156,000 after buying an additional 60 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Performance

Shares of MSFT opened at $500.59 on Thursday. 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 1 year low of $349.20 and a 1 year high of $553.72. The stock has a market capitalization of $3.72 trillion, a PE ratio of 27.87, a PEG ratio of 1.60 and a beta of 1.11. The stock has a 50-day simple moving average of $473.55 and a 200-day simple moving average of $424.91.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate 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 in the prior year, the firm posted $3.65 EPS. On average, analysts predict that Microsoft Corporation will post 19.61 earnings per share for the current fiscal 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 issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio is currently 21.83%.

Insider Activity at Microsoft

In other 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 transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of Microsoft stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 143,009 shares of company stock valued at $71,420,699 in the last ninety days. 0.03% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have weighed in on MSFT. Barclays decreased their price objective on Microsoft from $545.00 to $512.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Microsoft in a research report on Monday, July 20th. Raymond James Financial cut shares of Microsoft from an "outperform" rating to an "underperform" rating in a research report on Wednesday. Wolfe Research lowered shares of Microsoft from an "outperform" rating to a "peer perform" rating in a research note on Wednesday. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $640.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Forty-three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $569.29.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Stifel upgraded Microsoft to Buy from Hold and raised its price target to $575 from $530. The analyst expects Azure, Copilot and other AI services to accelerate revenue while Microsoft maintains resilient margins without needing excessive spending on AI models. Microsoft upgraded as analyst sees steady margins
• Positive Sentiment: Microsoft plans to invest more than $10 billion in the Gulf through 2030, funding cloud and AI infrastructure, cybersecurity, connectivity and workforce development across the UAE, Saudi Arabia, Qatar and Kuwait. The spending expands Azure’s international capacity and could create long-term commercial opportunities. Microsoft plans Gulf investment
• Positive Sentiment: AI monetization remains the central bullish thesis. Microsoft is pursuing broader Copilot adoption, including discounts of roughly 30% to 50% for large enterprise customers, while management highlights independent AI safety evaluators and software that controls AI agents as emerging opportunities. Microsoft plans larger Copilot discounts
• Neutral Sentiment: Microsoft and Coinbase disrupted an AI-enabled phishing network, reinforcing Microsoft’s cybersecurity credentials. However, the operation does not eliminate the persistent economic incentive for criminals to compromise accounts. Microsoft cuts AI phishing supply chain
• Neutral Sentiment: Microsoft’s collaboration with Photonic on quantum-computing resource estimation and its decision to give DARPA access to its Majorana 2 system enhance its technology and government relationships, but these projects are unlikely to affect near-term earnings. Microsoft opens quantum system to DARPA testing
• Negative Sentiment: Xbox is cutting 268 positions and transferring the next Halo game to Activision as part of a gaming restructuring. The move may improve efficiency but raises concerns about Microsoft’s gaming execution and follows recent layoffs. Microsoft cuts Xbox roles
• Negative Sentiment: Broader technology stocks weakened, while scrutiny of data-center water consumption and Microsoft’s heavy AI infrastructure spending adds to concerns about costs, regulation and execution.

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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