Microsoft Corporation $MSFT Position Reduced by Wellspring Financial Advisors LLC

Key Points

• Wellspring Financial Advisors reduced its Microsoft stake by 5.8% in the second quarter, selling 29,712 shares and retaining 484,667 shares valued at approximately $180.8 million. Microsoft remains the firm’s third-largest holding, while institutions collectively own 71.13% of the stock.
• Microsoft insiders sold 101,335 shares worth roughly $50.7 million over the past 90 days, including CEO Satya Nadella’s $43.4 million sale under a pre-arranged Rule 10b5-1 plan.
• Microsoft reported quarterly revenue of $90.01 billion and adjusted earnings of $4.74 per share, both above expectations, as revenue grew 17.7% year over year. Analysts remain bullish, with a consensus “Moderate Buy” rating and a $564.27 price target, though the planned AI data-center expansion carries significant capital-spending and execution risks.

Wellspring Financial Advisors LLC trimmed its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.8% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 484,667 shares of the software giant's stock after selling 29,712 shares during the period. Microsoft comprises 3.0% of Wellspring Financial Advisors LLC's holdings, making the stock its 3rd biggest holding. Wellspring Financial Advisors LLC's holdings in Microsoft were worth $180,790,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors have also modified their holdings of the stock. Longfellow Investment Management Co. LLC increased its holdings in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after purchasing an additional 20 shares during the period. Bernzott Capital Advisors purchased a new stake in shares of Microsoft in the 4th quarter worth $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft during the 4th quarter worth $36,000. Fairway Wealth LLC grew its position in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after buying an additional 66 shares in the last quarter. Finally, Frankly Finances LLC purchased a new position in shares of Microsoft during the second quarter valued at $35,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO Satya Nadella sold 86,525 shares of the company'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 of the company's stock, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 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 dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 101,335 shares of company stock worth $50,655,795 in the last ninety days. 0.03% of the stock is owned by insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reportedly plans to more than triple global data-center capacity to approximately 38 gigawatts by 2032. The expansion is intended to address server shortages that have forced Microsoft to turn away some AI and cloud customers, potentially allowing the company to capture more Azure demand and prevent business from shifting to rivals. Microsoft plans 38 gigawatts of data center capacity by 2032
• Positive Sentiment: Analysts remain constructive on Microsoft’s AI and cloud growth. Recent commentary cites Azure revenue growth of 43%, expectations for further acceleration, and approximately 30 million paid Copilot seats—supporting the view that AI products are becoming meaningful enterprise businesses. Microsoft: Big Tech Winner Still On Sale
• Positive Sentiment: Wall Street price targets are moving higher, with a Yahoo Finance analyst survey cited at $572.92. Microsoft is also expanding Azure’s commercial ecosystem through partnerships such as Talkdesk’s Azure Marketplace integration, which could increase cloud consumption and simplify enterprise adoption. Microsoft Price Targets Are Rising
• Neutral Sentiment: Microsoft is reorganizing its reporting structure and plans to disclose quarterly Azure revenue beginning in fiscal 2027. Greater transparency may help investors assess cloud performance, but the reporting change itself does not alter fundamentals. Microsoft’s Azure Reporting Shift Adds Clarity
• Neutral Sentiment: Longtime communications chief Frank Shaw is leaving after nearly three decades, a senior leadership transition that may attract attention but is not currently tied to a change in strategy. Frank Shaw leaving Microsoft
• Negative Sentiment: The data-center buildout will require very large capital expenditures, raising concerns about power availability, construction costs, free cash flow and returns on investment. The company’s recent capacity constraints also highlight execution risk. Microsoft’s AI Crunch Forced It to Turn Away Business
• Negative Sentiment: Investors are also weighing competition from Alphabet and other cloud providers, alongside security and productivity risks from bring-your-own-device users and concerns that Microsoft’s valuation already reflects substantial AI growth.

Microsoft Stock Performance

Shares of Microsoft stock opened at $495.63 on Monday. The company has a market capitalization of $3.68 trillion, a PE ratio of 27.60, a P/E/G ratio of 1.60 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a 50-day simple moving average of $455.85 and a two-hundred day simple moving average of $419.40. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to analysts' expectations of $87.62 billion. During the same period last year, the business earned $3.65 EPS. The company's revenue was up 17.7% compared to the same quarter last year. Research analysts expect that Microsoft Corporation will post 19.59 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

MSFT has been the subject of a number of research reports. Bank of America upped their price objective on shares of Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. Truist Financial reissued a "buy" rating and set a $575.00 target price on shares of Microsoft in a research report on Wednesday, July 22nd. CLSA restated an "outperform" rating on shares of Microsoft in a report on Thursday, July 30th. Guggenheim reaffirmed a "buy" rating and issued a $586.00 price target on shares of Microsoft in a research report on Monday, July 27th. Finally, Scotiabank reiterated an "outperform" rating and set a $510.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $564.27.

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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