Microsoft Corporation $MSFT Shares Sold by Transcendent Capital Group LLC

Key Points

• Transcendent Capital Group LLC reduced its Microsoft stake by 16.5% in Q3, selling 3,299 shares and ending the period with 16,654 shares worth $8.63 million (about 3.9% of the fund and its 4th-largest holding).
• Analysts have trimmed price targets recently (e.g., BofA to $520, Wedbush to $575), but the consensus remains a Moderate Buy with an average target of $591.95.
• Microsoft beat quarterly estimates with $4.14 EPS (vs. $3.86) and $81.27B revenue (up 16.7% YoY), while insiders showed mixed signals—an EVP sold 2,850 shares and a director purchased 5,000 shares.

Transcendent Capital Group LLC reduced its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 16.5% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 16,654 shares of the software giant's stock after selling 3,299 shares during the period. Microsoft accounts for about 3.9% of Transcendent Capital Group LLC's holdings, making the stock its 4th biggest holding. Transcendent Capital Group LLC's holdings in Microsoft were worth $8,626,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the company. Longfellow Investment Management Co. LLC increased its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after acquiring an additional 20 shares during the last quarter. Bayforest Capital Ltd acquired a new position in Microsoft during the third quarter worth $38,000. LSV Asset Management purchased a new stake in shares of Microsoft in the 4th quarter valued at $44,000. Sellwood Investment Partners LLC purchased a new position in Microsoft during the 3rd quarter valued at about $49,000. Finally, University of Illinois Foundation acquired a new position in Microsoft in the 2nd quarter valued at about $50,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Wall Street Analysts Forecast Growth

MSFT has been the subject of several recent research reports. Wedbush lowered their price objective on shares of Microsoft from $625.00 to $575.00 and set an "outperform" rating for the company in a research note on Thursday, January 29th. Wall Street Zen downgraded shares of Microsoft from a "buy" rating to a "hold" rating in a research note on Sunday, January 18th. Bank of America cut their target price on shares of Microsoft from $640.00 to $520.00 and set a "buy" rating on the stock in a research note on Monday, January 26th. Wolfe Research decreased their target price on Microsoft from $625.00 to $530.00 and set an "outperform" rating for the company in a research note on Thursday, January 29th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Microsoft from $630.00 to $575.00 and set a "buy" rating for the company in a research report on Thursday, January 29th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Microsoft currently has a consensus rating of "Moderate Buy" and an average target price of $591.95.

Microsoft Stock Up 1.5%

NASDAQ:MSFT opened at $398.55 on Tuesday. Microsoft Corporation has a twelve month low of $344.79 and a twelve month high of $555.45. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09. The stock's 50 day moving average price is $441.83 and its two-hundred day moving average price is $482.37. The firm has a market capitalization of $2.96 trillion, a price-to-earnings ratio of 24.92, a price-to-earnings-growth ratio of 1.54 and a beta of 1.08.

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 the consensus estimate of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The firm had revenue of $81.27 billion for the quarter, compared to the consensus estimate of $80.28 billion. During the same period in the previous year, the company earned $3.23 earnings per share. The company's quarterly revenue was up 16.7% on a year-over-year basis. Equities research analysts expect that Microsoft Corporation will post 13.08 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Microsoft news, EVP Takeshi Numoto sold 2,850 shares of the company's stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $478.72, for a total value of $1,364,352.00. Following the completion of the transaction, the executive vice president owned 55,782 shares of the company's stock, valued at $26,703,959.04. This represents a 4.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director John W. Stanton purchased 5,000 shares of Microsoft stock in a transaction dated Wednesday, February 18th. The shares were purchased at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares of the company's stock, valued at approximately $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.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Industry forecasts highlight large, multi‑year demand for industrial and enterprise digital tools — the connected‑worker market is projected to more than double by 2030, with Microsoft listed among the dominant vendors. That supports long‑term Azure/software monetization and IIoT growth expectations. Connected Worker Market Forecast
• Positive Sentiment: New initiatives and partnerships — including a SpaceX Starlink tie-up to extend Azure reach to underserved regions, a leadership reshuffle in gaming, and sustainability/rare‑earth efforts — underline Microsoft’s push to expand cloud footprint and enterprise reach. These moves can support revenue diversification in cloud and gaming. Gaming, Starlink & Azure Initiatives
• Positive Sentiment: Analyst support: Royal Bank of Canada reaffirmed an "outperform" rating on MSFT, which can bolster investor confidence amid recent weakness. RBC Outperform Reaffirmed
• Neutral Sentiment: Options and technical flows are active: reports show heavy options activity and MSFT testing key technical levels — this can amplify intraday moves and increase volatility, especially around earnings windows. Options Traders & Technical Levels
• Neutral Sentiment: Broader market context: commentary suggesting renewed March momentum for U.S. equities could lift large-cap tech, which benefits Microsoft, but macro-driven rallies are not guaranteed. Market Momentum
• Negative Sentiment: Share‑price weakness & relative underperformance: several pieces note MSFT is down materially year‑to‑date and underperforming peers, and the stock has declined since the last earnings report — a reminder that sentiment and multiple compression remain risks. Is MSFT in Trouble? (Fool) Down Since Earnings (Yahoo)
• Negative Sentiment: Reputational/operational noise: community furor around Copilot’s Discord (“Microslop”) creates PR distraction that could affect developer relations and adoption narratives if unresolved. Copilot Discord Furor
• Negative Sentiment: Execution & infrastructure constraints: coverage notes an electrician/skills shortage that could slow data‑center buildouts and raise costs for AI/cloud expansion — a potential medium‑term headwind to capacity growth. Data Center Labor Shortage

About Microsoft

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).

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