Microsoft Corporation $MSFT Stake Cut by KBC Group NV

Key Points

• KBC Group NV reduced its Microsoft stake by 14.4% in the second quarter, selling 857,292 shares and retaining 5.12 million shares valued at approximately $1.91 billion. Microsoft remains KBC’s fourth-largest holding and represents about 4.1% of its portfolio.
• Microsoft reported stronger-than-expected quarterly results, with $4.74 in earnings per share and $90.01 billion in revenue, up 17.7% year over year. Azure and AI demand remain key growth catalysts, although investors continue to monitor heavy AI infrastructure spending and valuation risks.
• The company increased its quarterly dividend to $0.98 per share, equivalent to $3.92 annually and a 0.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $571.18, despite mixed individual rating changes.

KBC Group NV lowered its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 14.4% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 5,115,865 shares of the software giant's stock after selling 857,292 shares during the quarter. Microsoft makes up approximately 4.1% of KBC Group NV's holdings, making the stock its 4th biggest holding. KBC Group NV owned approximately 0.07% of Microsoft worth $1,908,319,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Frankly Finances LLC purchased a new position in shares of Microsoft in the 2nd quarter worth about $35,000. MidAtlantic Capital Management Inc. acquired a new stake in Microsoft in the 4th quarter valued at $59,000. Fiduciary Advisors Inc. raised its position in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after purchasing an additional 34 shares during the period. Lifetime Wealth Management P.C. acquired a new position in shares of Microsoft during the fourth quarter worth about $101,000. Finally, Glynn Capital Management LLC boosted its holdings in Microsoft by 34.2% in the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock worth $95,000 after acquiring an additional 65 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Price Performance

Shares of NASDAQ:MSFT opened at $517.53 on Friday. The company's fifty day moving average is $490.08 and its two-hundred day moving average is $429.97. The company has a market cap of $3.84 trillion, a P/E ratio of 28.82, a price-to-earnings-growth ratio of 1.65 and a beta of 1.10. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. 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 data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.Microsoft's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the company earned $3.65 earnings per share. Equities analysts expect that Microsoft Corporation will post 19.62 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The business 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. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.8%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is 20.27%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Raymond James Financial downgraded shares of Microsoft from a "moderate buy" rating to a "strong sell" rating in a research note on Wednesday, September 23rd. Argus dropped their price objective on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a report on Friday, July 10th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $640.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Barclays reduced their target price on Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Truist Financial reissued a "buy" rating and set a $575.00 price target on shares of Microsoft in a research report on Wednesday, July 22nd. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $571.18.

Insider Activity at Microsoft

In other news, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is owned by company insiders.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand
• Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth
• Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft
• Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models
• Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show
• Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential

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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