Microsoft Corporation $MSFT Position Lessened by Cypress Asset Management Inc. TX

Key Points

• Cypress Asset Management cut its Microsoft position by 2.9% in the second quarter, selling 1,485 shares and retaining 49,644 shares worth approximately $18.5 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with $4.74 in EPS and $90.01 billion in revenue, beating analyst estimates and marking 17.7% year-over-year revenue growth. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $578.73.
• Shares traded near record highs as Microsoft advanced its AI and cloud strategy and approached a $4 trillion market capitalization, though investors face risks from insider selling, a suspended U.S. green-card sponsorship program and gaming-related regulatory scrutiny.

Cypress Asset Management Inc. TX decreased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.9% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 49,644 shares of the software giant's stock after selling 1,485 shares during the period. Microsoft makes up 3.6% of Cypress Asset Management Inc. TX's portfolio, making the stock its 7th biggest holding. Cypress Asset Management Inc. TX's holdings in Microsoft were worth $18,518,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of MSFT. Main Street Financial Solutions LLC acquired a new position in Microsoft in the 2nd quarter valued at approximately $12,289,000. Rayburn West Financial Services LLC boosted its stake in shares of Microsoft by 5.9% during the 2nd quarter. Rayburn West Financial Services LLC now owns 29,125 shares of the software giant's stock valued at $10,898,000 after buying an additional 1,624 shares during the period. Figure 8 Investment Strategies LLC grew its holdings in shares of Microsoft by 0.4% during the 2nd quarter. Figure 8 Investment Strategies LLC now owns 14,105 shares of the software giant's stock valued at $5,261,000 after acquiring an additional 61 shares in the last quarter. Navigoe LLC increased its stake in shares of Microsoft by 39.8% in the second quarter. Navigoe LLC now owns 344 shares of the software giant's stock worth $128,000 after acquiring an additional 98 shares during the last quarter. Finally, Hurlow Wealth Management Group Inc. lifted its holdings in shares of Microsoft by 3.5% during the 2nd quarter. Hurlow Wealth Management Group Inc. now owns 3,963 shares of the software giant's stock valued at $1,478,000 after buying an additional 133 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

Key Headlines Impacting Microsoft

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

Microsoft Price Performance

Shares of Microsoft stock opened at $535.07 on Friday. The stock has a market capitalization of $3.97 trillion, a price-to-earnings ratio of 29.79, a P/E/G ratio of 1.68 and a beta of 1.10. The firm's 50-day moving average price is $501.15 and its two-hundred day moving average price is $434.73. 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 1-year low of $349.20 and a 1-year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The company 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%. Microsoft's quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.65 earnings per share. On average, equities analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current fiscal 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 issued a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is presently 20.27%.

Insider Buying and Selling at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $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 SEC, which is available at 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 the stock in a transaction that occurred on 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 $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 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Scotiabank lifted their target price on shares of Microsoft from $510.00 to $615.00 and gave the company an "outperform" rating in a research note on Monday. Sanford C. Bernstein set a $660.00 price target on shares of Microsoft in a research note on Monday, August 10th. Tigress Financial raised their price target on shares of Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. KeyCorp reaffirmed an "overweight" rating on shares of Microsoft in a research note on Thursday, September 3rd. Finally, Benchmark reiterated a "buy" rating on shares of Microsoft in a report on Friday, July 24th. Forty-two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $578.73.

Microsoft 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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