Microsoft Corporation $MSFT Shares Sold by Compass Capital Management Inc.

Key Points

• Compass Capital Management cut its Microsoft stake by 2.6% in the second quarter, selling 4,462 shares and retaining 166,539 shares valued at approximately $62.1 million. Microsoft remains the firm’s fourth-largest holding and represents about 3.7% of its portfolio.
• Microsoft reported better-than-expected quarterly results, with EPS of $4.74 and revenue of $90.01 billion, up 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, or $3.92 annualized.
• Institutional ownership remains high at 71.13%, while insiders sold roughly $71.4 million of shares over the past 90 days. Analysts maintain a “Moderate Buy” consensus with an average price target of $578.73, though concerns remain over AI spending, leverage and Copilot adoption.

Compass Capital Management Inc. reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.6% during the 2nd quarter, according to its most recent filing with the SEC. The firm owned 166,539 shares of the software giant's stock after selling 4,462 shares during the period. Microsoft makes up approximately 3.7% of Compass Capital Management Inc.'s portfolio, making the stock its 4th biggest holding. Compass Capital Management Inc.'s holdings in Microsoft were worth $62,123,000 as of its most recent filing with the SEC.

Other institutional investors have also modified their holdings of the company. Avise Financial Cooperative Inc. boosted its holdings in Microsoft by 7.1% in the 2nd quarter. Avise Financial Cooperative Inc. now owns 3,743 shares of the software giant's stock worth $1,396,000 after buying an additional 248 shares during the last quarter. Cura Wealth Advisors LLC raised its holdings in shares of Microsoft by 9.6% during the second quarter. Cura Wealth Advisors LLC now owns 6,626 shares of the software giant's stock valued at $2,472,000 after acquiring an additional 580 shares during the last quarter. Simplicity Wealth LLC raised its holdings in shares of Microsoft by 61.1% during the second quarter. Simplicity Wealth LLC now owns 85,761 shares of the software giant's stock valued at $31,991,000 after acquiring an additional 32,532 shares during the last quarter. Baxter Bros Inc. lifted its position in shares of Microsoft by 1.1% in the second quarter. Baxter Bros Inc. now owns 131,367 shares of the software giant's stock valued at $49,002,000 after acquiring an additional 1,383 shares in the last quarter. Finally, Wealth Effects LLC lifted its position in shares of Microsoft by 1.5% in the second quarter. Wealth Effects LLC now owns 17,183 shares of the software giant's stock valued at $6,410,000 after acquiring an additional 261 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

Shares of MSFT stock opened at $529.76 on Thursday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a market capitalization of $3.93 trillion, a PE ratio of 29.50, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. The firm's 50-day moving average is $498.31 and its two-hundred day moving average is $433.03. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results 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. The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business's revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.65 EPS. Analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The firm 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 dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's payout ratio is 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

Insiders Place Their Bets

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares of the company's stock, valued at $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 that occurred 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 directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% 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. Insiders have sold 143,009 shares of company stock worth $71,420,699 over the last ninety days. Company insiders own 0.03% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. BNP Paribas Exane lowered Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday. CLSA reaffirmed an "outperform" rating on shares of Microsoft in a report on Thursday, July 30th. Truist Financial reiterated a "buy" rating and issued a $575.00 target price on shares of Microsoft in a research report on Wednesday, July 22nd. Jefferies Financial Group initiated coverage on shares of Microsoft in a research note on Monday. They issued a "buy" rating on the stock. Finally, Cantor Fitzgerald boosted their price target on shares of Microsoft from $522.00 to $608.00 and gave the stock an "overweight" rating in a research report on Monday, September 21st. Forty-one research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $578.73.

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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