Microsoft Corporation $MSFT Shares Acquired by Iowa State Bank

Key Points

• Iowa State Bank increased its Microsoft stake by 8% in the third quarter, adding 3,222 shares to hold 43,399 shares valued at about $22.3 million. Institutional investors collectively own 71.13% of the stock.
• Analysts give Microsoft a consensus “Moderate Buy” rating, with an average price target of $609.54.
• Microsoft beat quarterly earnings and revenue expectations, with revenue up 18.8% year over year; it also raised its quarterly dividend from $0.91 to $0.98 per share.

Iowa State Bank raised its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 8.0% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 43,399 shares of the software giant's stock after acquiring an additional 3,222 shares during the quarter. Microsoft makes up 3.6% of Iowa State Bank's holdings, making the stock its 8th biggest position. Iowa State Bank's holdings in Microsoft were worth $22,259,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Eleva Capital SAS purchased a new stake in Microsoft in the 3rd quarter worth about $11,190,000. Byrne Asset Management LLC lifted its holdings in Microsoft by 3.3% during the third quarter. Byrne Asset Management LLC now owns 19,603 shares of the software giant's stock valued at $10,052,000 after purchasing an additional 632 shares during the last quarter. Central Pacific Bank Trust Division lifted its holdings in Microsoft by 19.3% during the third quarter. Central Pacific Bank Trust Division now owns 40,886 shares of the software giant's stock valued at $20,970,000 after purchasing an additional 6,602 shares during the last quarter. Box Hill Private Wealth LLC lifted its holdings in Microsoft by 3.2% during the third quarter. Box Hill Private Wealth LLC now owns 4,409 shares of the software giant's stock valued at $2,261,000 after purchasing an additional 137 shares during the last quarter. Finally, Horizons Wealth Management bought a new position in Microsoft during the third quarter worth about $228,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

MSFT has been the subject of several recent research reports. Citigroup reiterated a "market outperform" rating on shares of Microsoft in a research note on Thursday, October 29th. William Blair initiated coverage on shares of Microsoft in a research note on Monday, October 5th. They set an "outperform" rating on the stock. Sanford C. Bernstein raised their price objective on shares of Microsoft from $662.00 to $722.00 and gave the stock an "outperform" rating in a report on Thursday, October 29th. Weiss Ratings raised shares of Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Finally, Bank of America lifted their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research note on Tuesday, September 1st. One analyst has rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $609.54.

Microsoft Stock Down 1.0%

MSFT stock opened at $530.61 on Friday. 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 firm has a market capitalization of $3.94 trillion, a PE ratio of 27.69, a PEG ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $559.15. The stock has a 50-day simple moving average of $516.65 and a two-hundred day simple moving average 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, beating the consensus estimate of $4.72 by $0.17. The firm had revenue of $92.28 billion for the quarter, compared to analysts' expectations of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company's revenue was up 18.8% on a year-over-year basis. During the same period in the prior year, the business posted $4.13 earnings per share. On average, equities analysts predict that Microsoft Corporation will post 19.92 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is currently 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

Insider Activity at Microsoft

In other Microsoft news, EVP Amy Hood sold 7,305 shares of the firm's stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value of $3,984,293.10. Following the completion of the transaction, the executive vice president directly owned 555,396 shares of the company's stock, valued at $302,924,086.32. This trade represents a 1.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. 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 a total of 135,504 shares of company stock worth $68,138,024 over the last quarter. Corporate insiders own 0.03% of the company's stock.

Microsoft Company 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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