Microsoft Corporation $MSFT Shares Sold by Lakehouse Capital Pty Ltd

Key Points

• Lakehouse Capital cut its Microsoft stake by 8.5% in the third quarter, selling 1,846 shares; it retained 19,927 shares valued at about $10.2 million.
• Microsoft reported quarterly EPS of $4.89 and revenue of $92.28 billion, both above analyst expectations, and raised its quarterly dividend to $0.98 per share. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $609.54.
• Microsoft is consolidating some AI infrastructure partnerships and winding down rented Oracle capacity, prompting questions about AI demand, buildout costs, and investment returns; the article also notes Microsoft continues to generate positive free cash flow.

Lakehouse Capital Pty Ltd trimmed its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 8.5% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 19,927 shares of the software giant's stock after selling 1,846 shares during the period. Microsoft comprises about 8.2% of Lakehouse Capital Pty Ltd's holdings, making the stock its 5th biggest holding. Lakehouse Capital Pty Ltd's holdings in Microsoft were worth $10,221,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also modified their holdings of the company. Hedeker Wealth LLC boosted its stake in shares of Microsoft by 6.9% during the 2nd quarter. Hedeker Wealth LLC now owns 55,236 shares of the software giant's stock worth $20,604,000 after acquiring an additional 3,546 shares in the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its stake in shares of Microsoft by 4.0% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant's stock worth $85,604,000 after acquiring an additional 8,773 shares during the last quarter. D.B. Root & Company LLC acquired a new stake in shares of Microsoft in the second quarter worth $3,652,000. Dearborn Partners LLC acquired a new stake in shares of Microsoft in the second quarter worth $75,641,000. Finally, GTS Securities LLC increased its position in Microsoft by 44.6% during the second quarter. GTS Securities LLC now owns 271,597 shares of the software giant's stock worth $101,311,000 after acquiring an additional 83,734 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Insider Activity at Microsoft

In other Microsoft news, EVP Amy Hood sold 7,305 shares of the stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the sale, the executive vice president owned 555,396 shares of the company's stock, valued at $302,924,086.32. This represents a 1.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 firm's stock in a transaction dated 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. The trade was 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 ninety days, insiders have sold 135,504 shares of company stock valued at $68,138,024. Company insiders own 0.03% of the company's stock.

Key Headlines 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

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on MSFT shares. Oppenheimer increased their price target on shares of Microsoft from $570.00 to $625.00 and gave the company an "outperform" rating in a report on Monday, October 26th. Yorkville Ives initiated coverage on shares of Microsoft in a report on Monday, October 5th. They set an "outperform" rating and a $615.00 price objective on the stock. KeyCorp set a $625.00 price objective on shares of Microsoft in a research report on Thursday, October 29th. Scotiabank upped their price target on Microsoft from $625.00 to $650.00 and gave the company a "sector outperform" rating in a report on Thursday, October 29th. Finally, Raymond James Financial set a $650.00 price objective on Microsoft in a research report on Thursday, October 29th. One research analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $609.54.

Microsoft Price Performance

Shares of NASDAQ:MSFT traded down $5.32 during midday trading on Friday, reaching $530.61. 26,926,992 shares of the company's stock were exchanged, compared to its average volume of 22,422,492. The company's 50 day simple moving average is $516.65 and its two-hundred day simple moving average is $440.18. The firm has a market capitalization of $3.94 trillion, a PE ratio of 27.69, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $559.15. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating analysts' consensus estimates of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The business had revenue of $92.28 billion for the quarter, compared to analysts' expectations of $90.62 billion. During the same quarter in the previous year, the firm posted $4.13 earnings per share. The firm's revenue for the quarter was up 18.8% on a year-over-year basis. Equities research analysts expect that Microsoft Corporation will post 19.89 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company 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 represents a $3.92 dividend on an annualized basis and a 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 (DPR) is presently 19.00%.

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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