Microsoft Corporation $MSFT Shares Sold by Bluefin Capital Management LLC

Key Points

• Bluefin Capital Management reduced its Microsoft stake by 17.7% in the second quarter, selling 43,208 shares and retaining 200,537 shares worth approximately $74.8 million. Microsoft remains the fund’s largest holding and represents 18.9% of its portfolio.
• Analyst sentiment remains broadly positive, with 43 Buy ratings and a consensus “Moderate Buy” rating; the average price target is $592.15. Investors are focused on Azure growth, Copilot adoption, AI monetization and the impact of heavy infrastructure spending on margins.
• Microsoft reported quarterly revenue of $90.01 billion and EPS of $4.74, exceeding analyst expectations, while revenue rose 17.7% year over year. The company also increased its quarterly dividend to $0.98 per share, though insider selling and AI-related spending remain potential concerns.

Bluefin Capital Management LLC decreased its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 17.7% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 200,537 shares of the software giant's stock after selling 43,208 shares during the period. Microsoft makes up 18.9% of Bluefin Capital Management LLC's portfolio, making the stock its largest holding. Bluefin Capital Management LLC's holdings in Microsoft were worth $74,804,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Frankly Finances LLC bought a new position in Microsoft in the 2nd quarter worth approximately $35,000. Bard Associates Inc. acquired a new stake in shares of Microsoft in the 2nd quarter valued at $37,000. PMV Capital Advisers LLC bought a new stake in shares of Microsoft during the second quarter worth $38,000. Fiduciary Advisors Inc. raised its position in shares of Microsoft by 37.4% during the second 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 last quarter. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Microsoft during the second quarter valued at $60,000. 71.13% of the stock is owned by institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Analyst Upgrades and Downgrades

MSFT has been the topic of several recent research reports. Citigroup raised their target price on shares of Microsoft from $600.00 to $636.00 and gave the company a "buy" rating in a research note on Thursday, October 15th. BMO Capital Markets boosted their price target on shares of Microsoft from $515.00 to $600.00 and gave the stock an "outperform" rating in a research note on Tuesday. Piper Sandler restated an "overweight" rating on shares of Microsoft in a report on Tuesday. Royal Bank Of Canada restated an "outperform" rating on shares of Microsoft in a report on Thursday, September 10th. Finally, Argus decreased their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research report on Friday, July 10th. Forty-three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $592.15.

Microsoft Stock Up 0.7%

NASDAQ MSFT opened at $524.51 on Friday. The company has a market cap of $3.90 trillion, a price-to-earnings ratio of 29.20, a PEG ratio of 1.67 and a beta of 1.10. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The company has a 50 day moving average of $508.51 and a 200-day moving average of $446.17.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the prior year, the company posted $3.65 earnings per share. The business's revenue for the quarter was up 17.7% on a year-over-year basis. On average, equities research analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.98 dividend. This is an increase from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft's dividend payout ratio is currently 20.27%.

Insider Buying and Selling at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. Company insiders own 0.03% of the company's stock.

About Microsoft

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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