Microsoft Corporation $MSFT Shares Sold by Montecito Bank & Trust

Key Points

• Montecito Bank & Trust trimmed its Microsoft stake by 8.8%, selling 4,117 shares and retaining 42,659 shares worth about $20.63 million, making MSFT its third-largest holding.
• Microsoft beat quarterly expectations with $4.14 EPS vs. $3.86 and $81.27 billion in revenue (up 16.7% YoY), and declared a quarterly dividend of $0.91 ($3.64 annualized, ~1.0% yield).
• Market sentiment is mixed: heavy AI capex and execution worries (reports of roughly $30B/quarter in AI spending and targeted hiring freezes) have pressured the stock, yet analysts remain largely bullish with a consensus "Moderate Buy" and an average price target near $589.

Montecito Bank & Trust reduced its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 8.8% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 42,659 shares of the software giant's stock after selling 4,117 shares during the period. Microsoft comprises 3.3% of Montecito Bank & Trust's holdings, making the stock its 3rd largest position. Montecito Bank & Trust's holdings in Microsoft were worth $20,631,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Longfellow Investment Management Co. LLC increased its holdings in Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Bayforest Capital Ltd purchased a new position in Microsoft during the third quarter valued at $38,000. Sellwood Investment Partners LLC purchased a new position in Microsoft during the third quarter valued at $49,000. University of Illinois Foundation acquired a new stake in shares of Microsoft in the second quarter valued at about $50,000. Finally, Stance Capital LLC acquired a new stake in shares of Microsoft in the third quarter valued at about $54,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Stock Performance

MSFT opened at $356.77 on Friday. Microsoft Corporation has a twelve month low of $344.79 and a twelve month high of $555.45. The firm has a market capitalization of $2.65 trillion, a PE ratio of 22.31, a PEG ratio of 1.35 and a beta of 1.10. The company has a current ratio of 1.39, a quick ratio of 1.38 and a debt-to-equity ratio of 0.09. The firm's 50-day moving average price is $409.36 and its 200 day moving average price is $467.44.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, beating analysts' consensus estimates of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The company had revenue of $81.27 billion during the quarter, compared to the consensus estimate of $80.28 billion. During the same quarter in the prior year, the firm earned $3.23 EPS. Microsoft's quarterly revenue was up 16.7% on a year-over-year basis. As a group, sell-side analysts expect that Microsoft Corporation will post 13.08 EPS for the current fiscal year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft's dividend payout ratio (DPR) is currently 22.76%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Some Wall Street analysts still see large upside for MSFT, arguing the pullback may be overdone and presenting a buying opportunity for long‑term investors. Wall Street Says Microsoft Stock Has 89% Rebound Potential
• Positive Sentiment: Fundamental revenue drivers remain: LinkedIn ad growth and marketing solutions are cited as near‑term revenue positives that help offset AI spending concerns. Microsoft Benefits From LinkedIn Ad Growth: More Upside Ahead?
• Neutral Sentiment: Microsoft has implemented targeted hiring freezes in major cloud and North American sales groups while keeping AI and engineering hiring active — a cost‑management move that highlights prioritization of AI infrastructure but leaves uncertainty over near‑term sales execution. Microsoft freezes hiring in major cloud, sales groups, The Information reports
• Neutral Sentiment: Infrastructure expansion continues: third‑party partner Crusoe announced a 900 MW AI campus in Abilene, Texas to support large‑scale workloads for Microsoft — this reinforces demand for hyperscale capacity even as investors debate ROI timing. Crusoe Announces New 900 MW AI Factory Campus in Abilene, Texas to Support Microsoft AI Infrastructure
• Negative Sentiment: Market narrative has flipped: analysts and commentary say Microsoft is “losing the AI narrative,” and technical indicators show the stock at decade‑low oversold levels — fueling momentum selling. Microsoft’s stock hasn’t been this oversold in a decade, with the tech giant ‘really losing the AI narrative’
• Negative Sentiment: Heavy AI capex and execution concerns: multiple reports highlight Microsoft’s very large AI spending (reports cite ~$30B per quarter-level scale), slowing Copilot adoption vs. expectations, and the stock is on track for its worst quarter since 2008 — pressuring valuations and near‑term sentiment. Microsoft Is Down 24% This Year While Spending $30B a Quarter on AI
• Negative Sentiment: Competitive and strategic risks are rising: OpenAI and other AI firms (including reports of Anthropic eyeing an IPO) are evolving relationships and competition that could reduce Microsoft’s exclusive leverage in parts of the AI stack. Anthropic eyes IPO, Microsoft stock set for worst quarter since 2008

Insider Buying and Selling

In related news, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the transaction, the executive vice president owned 137,933 shares in the company, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John W. Stanton acquired 5,000 shares of the stock in a transaction on Wednesday, February 18th. The shares were bought at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the purchase, the director directly owned 83,905 shares of the company's stock, valued at $33,339,651.75. The trade was a 6.34% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.03% of the company's stock.

Analyst Ratings Changes

Several research analysts recently weighed in on MSFT shares. Sanford C. Bernstein restated an "outperform" rating and set a $641.00 price target (down from $645.00) on shares of Microsoft in a research report on Thursday, January 29th. Mizuho lowered their price objective on Microsoft from $640.00 to $620.00 and set an "outperform" rating on the stock in a report on Wednesday, January 21st. JPMorgan Chase & Co. cut their price objective on Microsoft from $575.00 to $550.00 and set an "overweight" rating for the company in a research note on Thursday, January 29th. DZ Bank reissued a "buy" rating on shares of Microsoft in a report on Thursday, January 29th. Finally, Guggenheim restated a "buy" rating and issued a $586.00 target price on shares of Microsoft in a research report on Thursday, January 22nd. Two analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $588.97.

Microsoft Company Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.