Microsoft Corporation $MSFT Shares Sold by Benedict Financial Advisors Inc.

Key Points

• Benedict Financial Advisors cut its Microsoft stake by 3% in the third quarter, selling 1,107 shares; it still held 35,544 shares worth about $18.23 million.
• Microsoft reported quarterly earnings and revenue above analyst expectations, with revenue up 18.8% year over year, and raised its quarterly dividend from $0.91 to $0.98 per share.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $609.54 average target price. Meanwhile, reports that Microsoft is scaling back some external AI-computing commitments have raised questions about spending, capacity needs, and returns.

Benedict Financial Advisors Inc. decreased its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 3.0% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 35,544 shares of the software giant's stock after selling 1,107 shares during the quarter. Microsoft makes up about 3.4% of Benedict Financial Advisors Inc.'s investment portfolio, making the stock its 3rd largest position. Benedict Financial Advisors Inc.'s holdings in Microsoft were worth $18,230,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently bought and sold shares of MSFT. Montgomery Financial Services LLC bought a new position in Microsoft in the second quarter valued at about $26,000. Frankly Finances LLC bought a new stake in Microsoft during the 2nd quarter worth about $35,000. Bard Associates Inc. acquired a new position in Microsoft during the 2nd quarter valued at about $37,000. PMV Capital Advisers LLC bought a new position in Microsoft in the second quarter valued at approximately $38,000. Finally, Fiduciary Advisors Inc. grew its holdings in Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after acquiring an additional 34 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Key Stories Impacting Microsoft

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 news, CEO Satya Nadella sold 86,525 shares of the 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 completion of the sale, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a legal 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 on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. The trade was a 7.24% 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 135,504 shares of company stock valued at $68,138,024 in the last quarter. Corporate insiders own 0.03% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on MSFT. Barclays boosted their target price on Microsoft from $600.00 to $610.00 and gave the stock an "overweight" rating in a research report on Thursday, October 29th. Needham & Company LLC initiated coverage on shares of Microsoft in a research report on Wednesday, September 23rd. They issued a "buy" rating on the stock. Sanford C. Bernstein increased their price target on shares of Microsoft from $662.00 to $722.00 and gave the company an "outperform" rating in a research report on Thursday, October 29th. Raymond James Financial set a $650.00 price objective on shares of Microsoft in a research note on Thursday, October 29th. Finally, Truist Financial restated a "buy" rating and set a $630.00 price objective (up from $600.00) on shares of Microsoft in a report on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and a consensus target price of $609.54.

Microsoft Price Performance

NASDAQ:MSFT opened at $530.61 on Monday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $559.15. The stock has a 50-day moving average price of $516.65 and a two-hundred day moving average price of $440.18. The stock has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a PEG ratio of 1.56 and a beta of 1.05. 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 (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS 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 company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. During the same quarter last year, the firm posted $4.13 earnings per share. Microsoft's revenue was up 18.8% compared to the same quarter last year. As a group, equities analysts expect that Microsoft Corporation will post 19.92 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is currently 20.46%.

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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