Microsoft Corporation $MSFT Position Lowered by RFG Advisory LLC

Key Points

• RFG Advisory cut its Microsoft stake by 15.2% in the second quarter, selling 11,690 shares and retaining 65,031 shares valued at about $24.3 million. Institutional investors overall own 71.13% of the stock.
• Microsoft’s latest quarterly results beat expectations: earnings were $4.89 per share and revenue was $92.28 billion, up 18.8% year over year. The company also raised its quarterly dividend from $0.91 to $0.98 per share.
• Azure growth and strong AI demand support the outlook, but reported quarterly capital spending of $45.2 billion raises questions about the cost and timing of AI returns. Analysts surveyed by MarketBeat gave the stock a “Moderate Buy” consensus rating.

RFG Advisory LLC reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 15.2% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 65,031 shares of the software giant's stock after selling 11,690 shares during the quarter. RFG Advisory LLC's holdings in Microsoft were worth $24,258,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in MSFT. NewEdge Advisors LLC increased its stake in Microsoft by 5.6% in the 2nd quarter. NewEdge Advisors LLC now owns 1,661,376 shares of the software giant's stock valued at $619,725,000 after buying an additional 88,531 shares during the period. Hedeker Wealth LLC lifted its position in Microsoft by 6.9% in the 2nd quarter. Hedeker Wealth LLC now owns 55,236 shares of the software giant's stock worth $20,604,000 after buying an additional 3,546 shares in the last quarter. Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD purchased a new stake in Microsoft in the 2nd quarter worth approximately $14,959,000. IFP Advisors Inc boosted its stake in shares of Microsoft by 3.2% during the 2nd quarter. IFP Advisors Inc now owns 180,462 shares of the software giant's stock valued at $67,316,000 after buying an additional 5,662 shares during the period. Finally, Roble Belko & Company Inc boosted its stake in shares of Microsoft by 17.8% during the 2nd quarter. Roble Belko & Company Inc now owns 5,826 shares of the software giant's stock valued at $2,173,000 after buying an additional 880 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure’s reported 48% growth helped lift Microsoft amid an AI-related tech rebound. Commentary also points to AI demand exceeding available capacity and argues Microsoft can fund its expansion from strong cash flow—an advantage as investors scrutinize rivals’ borrowing and spending. Article: What's Going on with Microsoft Stock on Tuesday? Article: Why Microsoft Was Rewarded for Spending Less on AI
• Positive Sentiment: Microsoft’s AI tools may reach a broader base of PC users: the company says AI can run on a computer with 8GB of memory, potentially supporting adoption of Copilot and related services. Article: AI on an 8GB PC? Yes, Says Microsoft
• Neutral Sentiment: Xbox’s reveal of a new Elder Scrolls title drew attention to Microsoft’s gaming business, but the article provides no indication of near-term financial impact. Article: Microsoft Stock Rises After The Elder Scrolls VI: Sentinel Reveal
• Negative Sentiment: A Seeking Alpha contributor downgraded Microsoft, arguing that the easiest gains may be behind the stock—an assessment that could temper expectations after its recent strength. Article: Microsoft: The Easy Gains Are Already Over (Downgrade)
• Negative Sentiment: Microsoft’s reported $45.2 billion in quarterly capital spending, largely for AI, underscores the risk that infrastructure costs could weigh on cash flow before returns fully materialize. Reports of buyouts offered to roughly 60,000 employees may also prompt questions about workforce changes. Article: 5 questions to ask if your boss offers you a buyout

Microsoft Price Performance

NASDAQ MSFT opened at $520.99 on Wednesday. The company has a quick ratio of 1.21, a current ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $3.87 trillion, a PE ratio of 27.19, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $551.15. The company has a 50 day moving average price of $514.06 and a two-hundred day moving average price of $438.92.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping the consensus estimate of $4.72 by $0.17. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. Microsoft's quarterly revenue was up 18.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $4.13 EPS. As a group, equities analysts predict that Microsoft Corporation will post 19.86 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm also recently disclosed 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 is a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is currently 19.00%.

Insiders Place Their Bets

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction 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 trade represents a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the business's stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total value of $3,984,293.10. Following the completion of the sale, the executive vice president directly owned 555,396 shares of the company's stock, valued at $302,924,086.32. This represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 135,504 shares of company stock valued at $68,138,024 over the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. Cantor Fitzgerald boosted their price target on shares of Microsoft from $608.00 to $630.00 and gave the company an "overweight" rating in a report on Thursday, October 29th. Sanford C. Bernstein increased their price objective on Microsoft from $662.00 to $722.00 and gave the stock an "outperform" rating in a report on Thursday, October 29th. Citizens Jmp lifted their price objective on Microsoft from $550.00 to $625.00 and gave the company a "market outperform" rating in a research report on Thursday, October 29th. Royal Bank Of Canada reissued an "outperform" rating and set a $640.00 price objective on shares of Microsoft in a research report on Thursday, October 29th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $600.00 target price on shares of Microsoft in a research note on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, Microsoft presently has an average rating of "Moderate Buy" and a consensus price target of $609.54.

Microsoft Company Profile

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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