Microsoft Corporation $MSFT Shares Acquired by Canandaigua National Bank & Trust Co.

Key Points

• Canandaigua National Bank & Trust increased its Microsoft stake by 2.3% in the third quarter, adding 1,794 shares to hold 80,667 shares valued at $41.4 million.
• Analysts remain broadly positive: Microsoft has a “Moderate Buy” consensus rating and an average price target of $609.54.
• Microsoft beat quarterly earnings and revenue estimates, with revenue up 18.8% year over year, and raised its quarterly dividend from $0.91 to $0.98 per share. Reports of adjustments to AI infrastructure commitments have added questions about spending and future returns.

Canandaigua National Bank & Trust Co. grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.3% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 80,667 shares of the software giant's stock after buying an additional 1,794 shares during the quarter. Microsoft makes up 3.7% of Canandaigua National Bank & Trust Co.'s portfolio, making the stock its 4th largest position. Canandaigua National Bank & Trust Co.'s holdings in Microsoft were worth $41,374,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in the stock. Hedeker Wealth LLC increased its position in Microsoft by 6.9% during the second quarter. Hedeker Wealth LLC now owns 55,236 shares of the software giant's stock worth $20,604,000 after acquiring an additional 3,546 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management boosted its holdings in shares of Microsoft by 4.0% in the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant's stock valued at $85,604,000 after purchasing an additional 8,773 shares in the last quarter. D.B. Root & Company LLC bought a new position in Microsoft in the second quarter valued at about $3,652,000. Dearborn Partners LLC acquired a new stake in Microsoft in the second quarter valued at approximately $75,641,000. Finally, GTS Securities LLC boosted its holdings in shares of Microsoft by 44.6% during the 2nd quarter. GTS Securities LLC now owns 271,597 shares of the software giant's stock valued at $101,311,000 after acquiring an additional 83,734 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Sanford C. Bernstein boosted their target price on shares of Microsoft from $662.00 to $722.00 and gave the stock an "outperform" rating in a report on Thursday, October 29th. Mizuho raised their price objective on shares of Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a research report on Thursday, October 15th. Needham & Company LLC initiated coverage on Microsoft in a research report on Wednesday, September 23rd. They set a "buy" rating on the stock. Jefferies Financial Group raised their target price on Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a report on Wednesday, October 14th. Finally, Rothschild & Co Redburn set a $440.00 price objective on shares of Microsoft in a research report on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $609.54.

Microsoft Stock Performance

Shares of NASDAQ MSFT opened at $530.61 on Monday. The stock's 50-day moving average is $516.65 and its 200 day moving average is $440.18. The company has a current ratio of 1.22, a quick ratio of 1.21 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 $559.15. The stock has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a P/E/G ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its 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 the consensus estimate of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The firm's revenue for the quarter was up 18.8% on a year-over-year basis. During the same period in the previous year, the firm earned $4.13 earnings per share. On average, sell-side analysts anticipate that Microsoft Corporation will post 19.92 EPS 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 paid a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft's payout ratio is presently 20.46%.

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

Insider Buying and Selling

In other news, CEO Satya Nadella sold 86,525 shares of Microsoft 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 transaction, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the company'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 value of $20,764,903.98. Following the completion of the transaction, the executive vice president directly 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. 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 ninety days, insiders have sold 135,504 shares of company stock valued at $68,138,024. 0.03% of the stock is owned by corporate insiders.

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.

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