Microsoft Corporation $MSFT Stake Reduced by Chapin Davis Inc.

Key Points

• Chapin Davis cut its Microsoft stake by 12.6% in the second quarter, selling 3,812 shares and retaining 26,472 shares valued at approximately $9.9 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft’s outlook remains broadly positive but faces AI-spending risks. Analysts expect Azure growth and AI monetization to support results, while heavy data-center investment could pressure margins; the stock has a “Moderate Buy” consensus rating with an average price target of $592.15.
• Recent financial and insider activity was mixed. Microsoft exceeded quarterly earnings and revenue estimates, raised its quarterly dividend to $0.98, and executives sold shares—including CEO Satya Nadella’s $43.4 million sale under a pre-arranged trading plan.

Chapin Davis Inc. lessened its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 12.6% in the second quarter, according to its most recent filing with the SEC. The firm owned 26,472 shares of the software giant's stock after selling 3,812 shares during the quarter. Microsoft makes up approximately 1.8% of Chapin Davis Inc.'s investment portfolio, making the stock its 19th largest holding. Chapin Davis Inc.'s holdings in Microsoft were worth $9,875,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the company. Markel Group Inc. lifted its holdings in shares of Microsoft by 0.4% in the 1st quarter. Markel Group Inc. now owns 537,630 shares of the software giant's stock worth $199,014,000 after purchasing an additional 1,950 shares in the last quarter. Bessemer Group Inc. grew its position in Microsoft by 8.4% in the 1st quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant's stock valued at $2,562,197,000 after purchasing an additional 537,634 shares during the period. Harel Insurance Investments & Financial Services Ltd. increased its stake in Microsoft by 138.8% during the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant's stock valued at $502,077,000 after purchasing an additional 788,297 shares in the last quarter. Hamilton Wealth LLC increased its stake in Microsoft by 16.8% during the 1st quarter. Hamilton Wealth LLC now owns 68,212 shares of the software giant's stock valued at $25,250,000 after purchasing an additional 9,802 shares in the last quarter. Finally, Decker Wealth Management LLC bought a new stake in Microsoft during the 1st quarter valued at $8,530,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Insider Activity at Microsoft

In other Microsoft 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 transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. Insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Morgan Stanley lowered shares of Microsoft from an "overweight" rating to a "negative" rating in a research note on Monday, October 5th. Cantor Fitzgerald lifted their price objective on shares of Microsoft from $522.00 to $608.00 and gave the company an "overweight" rating in a report on Monday, September 21st. Jefferies Financial Group boosted their target price on shares of Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a research report on Wednesday, October 14th. UBS Group boosted their target price on shares of Microsoft from $525.00 to $675.00 and gave the stock a "buy" rating in a research report on Thursday, October 15th. Finally, Bank of America upped their target price on shares of Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a report on Tuesday, September 1st. Forty-three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $592.15.

Microsoft Stock Performance

MSFT stock opened at $524.51 on Friday. The firm has a market cap of $3.90 trillion, a PE ratio of 29.20, a P/E/G ratio of 1.67 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. The business has a 50 day moving average of $508.51 and a 200-day moving average of $446.17. 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 issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. Microsoft's revenue was up 17.7% on a year-over-year basis. During the same period last year, the business posted $3.65 earnings per share. As a group, sell-side analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently disclosed 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 is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's payout ratio is presently 20.27%.

About Microsoft

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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.