Microsoft Corporation $MSFT Shares Sold by ICONIQ Capital LLC

Key Points

• ICONIQ Capital LLC cut its Microsoft stake by 98.4% in the second quarter, selling 146,869 shares and retaining 2,452 shares valued at approximately $915,000. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, with EPS of $4.74 and revenue of $90.01 billion, representing 17.7% year-over-year revenue growth. The company also raised its quarterly dividend to $0.98 per share, or $3.92 annually.
• Analyst sentiment remains largely positive, with 43 Buy, four Hold and two Sell ratings and a consensus “Moderate Buy” rating. However, insiders sold roughly $75.4 million of stock over the past 90 days, including sales by CEO Satya Nadella and EVP Amy Hood.

ICONIQ Capital LLC decreased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 98.4% during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor owned 2,452 shares of the software giant's stock after selling 146,869 shares during the period. ICONIQ Capital LLC's holdings in Microsoft were worth $915,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Frankly Finances LLC acquired a new position in shares of Microsoft during the 2nd quarter worth about $35,000. Bard Associates Inc. bought a new position in shares of Microsoft in the 2nd quarter valued at about $37,000. PMV Capital Advisers LLC bought a new position in shares of Microsoft in the 2nd quarter valued at about $38,000. Fiduciary Advisors Inc. grew its holdings in shares of Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after acquiring an additional 34 shares in the last quarter. Finally, Persistent Asset Partners Ltd acquired a new stake in shares of Microsoft in the second quarter valued at about $60,000. Institutional investors own 71.13% of the company's stock.

Microsoft Stock Performance

NASDAQ MSFT opened at $524.51 on Friday. The firm has a 50-day moving average of $508.51 and a 200-day moving average of $446.17. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a market cap of $3.90 trillion, a PE ratio of 29.20, a P/E/G ratio of 1.68 and a beta of 1.10. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The firm 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 for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.65 EPS. On average, sell-side analysts anticipate that Microsoft Corporation will post 19.66 EPS for the current year.

Microsoft Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is currently 20.27%.

Insider Buying and Selling

In other news, EVP Amy Hood sold 7,305 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the sale, the executive vice president directly owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. This represents a 1.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 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 completion of the transaction, the chief executive officer directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on MSFT shares. JPMorgan Chase & Co. reiterated a "buy" rating on shares of Microsoft in a report on Monday, September 28th. KeyCorp reaffirmed an "overweight" rating on shares of Microsoft in a research report on Thursday, September 3rd. Cantor Fitzgerald upped their price objective on Microsoft from $522.00 to $608.00 and gave the stock an "overweight" rating in a research note on Monday, September 21st. Raymond James Financial downgraded Microsoft from a "moderate buy" rating to a "strong sell" rating in a report on Wednesday, September 23rd. Finally, Bank of America increased their price objective on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a report on Tuesday, September 1st. Forty-three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $592.15.

Key Microsoft News

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

Microsoft Company Profile

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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