Microsoft Corporation $MSFT Stake Decreased by Congress Asset Management Co.

Key Points

• Congress Asset Management cut its Microsoft stake by 1.7% in the third quarter, selling 14,089 shares; it still held 801,234 shares valued at about $411 million.
• Microsoft beat quarterly earnings and revenue estimates, with revenue up 18.8% year over year, and raised its quarterly dividend from $0.91 to $0.98 per share.
• Microsoft is reportedly consolidating AI infrastructure partners and winding down rented Oracle capacity, a move that may help manage costs but has raised questions about AI demand, buildout timing, and investment returns.

Congress Asset Management Co. decreased its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.7% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 801,234 shares of the software giant's stock after selling 14,089 shares during the quarter. Microsoft accounts for about 2.6% of Congress Asset Management Co.'s investment portfolio, making the stock its 5th largest position. Congress Asset Management Co.'s holdings in Microsoft were worth $410,953,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in the business. Bank of America Corp DE purchased a new stake in Microsoft in the second quarter worth about $27,338,370,000. Legal & General Group Plc bought a new stake in Microsoft in the 2nd quarter valued at $18,306,443,000. Jupiter Topco LLC bought a new position in shares of Microsoft during the 2nd quarter valued at about $6,928,664,000. Canada Pension Plan Investment Board bought a new position in shares of Microsoft during the 2nd quarter valued at about $5,653,812,000. Finally, The Manufacturers Life Insurance Company purchased a new position in shares of Microsoft during the second quarter valued at about $4,000,706,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft News Summary

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

Microsoft Trading Down 1.0%

Shares of NASDAQ MSFT opened at $530.61 on Friday. The business's 50 day moving average is $516.65 and its two-hundred day moving average is $440.18. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.21. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $559.15. The stock has a market capitalization of $3.94 trillion, a P/E ratio of 27.69, a PEG ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. During the same period last year, the company earned $4.13 earnings per share. Microsoft's revenue was up 18.8% on a year-over-year basis. As a group, research analysts expect that Microsoft Corporation will post 19.92 EPS for the current year.

Microsoft Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is currently 19.00%.

Insider Transactions at Microsoft

In other news, 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 sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% 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, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 135,504 shares of company stock worth $68,138,024 over the last 90 days. Insiders own 0.03% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Cantor Fitzgerald lifted their target price on Microsoft from $608.00 to $630.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Stifel Nicolaus increased their price target on Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a research note on Thursday, October 29th. BNP Paribas Exane cut Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. BMO Capital Markets set a $610.00 price objective on Microsoft in a research note on Thursday, October 29th. Finally, Wells Fargo & Company upped their price objective on Microsoft from $725.00 to $750.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and an average target price of $609.54.

About Microsoft

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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