Microsoft Corporation $MSFT Position Lifted by Ferguson Wellman Capital Management Inc.

Key Points

• Ferguson Wellman Capital Management increased its Microsoft stake by 3.7% in the third quarter, adding 34,656 shares to reach 969,392 shares valued at about $497.2 million. Microsoft is the fund’s largest portfolio position.
• Microsoft reported quarterly earnings of $4.89 per share and revenue of $92.28 billion, beating analyst estimates; revenue grew 18.8% year over year. Analysts’ consensus rating is “Moderate Buy,” with a $609.54 average price target.
• Microsoft raised its quarterly dividend from $0.91 to $0.98 per share, equivalent to an annualized $3.92 and a 0.7% yield.

Ferguson Wellman Capital Management Inc. grew its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 3.7% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 969,392 shares of the software giant's stock after purchasing an additional 34,656 shares during the period. Microsoft makes up about 5.9% of Ferguson Wellman Capital Management Inc.'s portfolio, making the stock its biggest position. Ferguson Wellman Capital Management Inc.'s holdings in Microsoft were worth $497,201,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. State Street Corp raised its holdings in Microsoft by 2.9% in the second quarter. State Street Corp now owns 315,653,206 shares of the software giant's stock worth $117,744,959,000 after buying an additional 8,944,917 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Microsoft during the 2nd quarter worth about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Microsoft by 0.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after buying an additional 543,172 shares during the period. Legal & General Group Plc purchased a new position in Microsoft in the second quarter valued at approximately $18,306,443,000. Finally, Amundi lifted its stake in shares of Microsoft by 12.0% in the 2nd quarter. Amundi now owns 46,694,778 shares of the software giant's stock worth $17,418,076,000 after acquiring an additional 5,019,702 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have commented on MSFT. Royal Bank Of Canada reissued an "outperform" rating and set a $640.00 target price on shares of Microsoft in a research note on Thursday, October 29th. BMO Capital Markets set a $610.00 target price on shares of Microsoft in a research report on Thursday, October 29th. Bank of America raised their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. Wells Fargo & Company upped their price target on shares of Microsoft from $725.00 to $750.00 and gave the stock an "overweight" rating in a research note on Thursday, October 29th. Finally, Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a research note on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $609.54.

Insider Activity

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction dated 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 sale, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 135,504 shares of company stock valued at $68,138,024. 0.03% of the stock is owned by company insiders.

Microsoft Price Performance

NASDAQ:MSFT opened at $530.61 on Friday. The stock has a market cap of $3.94 trillion, a P/E ratio of 27.69, a PEG ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a one year low of $349.20 and a one year high of $559.15. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.21. The company has a fifty day moving average price of $516.65 and a 200 day moving average price of $440.18.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The firm had revenue of $92.28 billion for the quarter, compared to the consensus estimate of $90.62 billion. During the same quarter in the previous year, the business earned $4.13 earnings per share. The business's revenue was up 18.8% compared to the same quarter last year. Analysts anticipate that Microsoft Corporation will post 19.89 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently announced 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 is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft's payout ratio is 19.00%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s free-cash-flow position may offer some reassurance: an analysis notes that several other major AI hyperscalers are generating negative free cash flow, while Microsoft is generating positive cash flow. Is Microsoft Getting Enough Credit for Better Free Cash Flow Compared to its Peers?
• Neutral Sentiment: Reports say Microsoft plans to reduce the number of neocloud partners it uses, wind down rented AI capacity from Oracle, and declined a Texas data-center expansion with Nscale. This could help control costs and give Microsoft tighter oversight as it builds its own infrastructure, but the implications for capacity growth remain uncertain. Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain
• Negative Sentiment: Investors may read the canceled or reduced AI-computing commitments as a sign that Microsoft is reassessing demand, project timing, or returns on its data-center spending. The shift comes as reports highlight construction delays and the rising cost of meeting a growing AI backlog, intensifying scrutiny of whether heavy investment will pay off. Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
• Negative Sentiment: Broader unease around AI spending and tech-market volatility may also weigh on MSFT, as investors question the scale of data-center investment relative to future cash returns. Microsoft and Oracle's AI ambitions are suddenly a lot more expensive

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. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington.

Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.

Microsoft serves customers around the world through its products, online platforms, and network of business partners.

Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.