Microsoft Corporation $MSFT Stake Trimmed by Cypress Capital Management LLC WY

Key Points

• Cypress Capital Management LLC WY cut its Microsoft stake by 60.9% in the second quarter, selling 1,424 shares; it held 914 shares worth about $341,000 at quarter-end.
• Microsoft reported quarterly EPS of $4.89, beating the $4.72 consensus, while revenue rose 18.8% year over year to $92.28 billion. It also raised its quarterly dividend from $0.91 to $0.98 per share.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus rating and a $609.54 average price target, though one firm recently downgraded the stock to “Hold.”

Cypress Capital Management LLC WY reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 60.9% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 914 shares of the software giant's stock after selling 1,424 shares during the period. Cypress Capital Management LLC WY's holdings in Microsoft were worth $341,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Bank of America Corp DE bought a new position in shares of Microsoft during the 2nd quarter worth $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Microsoft by 0.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after acquiring an additional 543,172 shares during the last quarter. Legal & General Group Plc bought a new stake in Microsoft in the 2nd quarter valued at about $18,306,443,000. Amundi raised its stake in Microsoft by 12.0% in the 2nd quarter. Amundi now owns 46,694,778 shares of the software giant's stock valued at $17,418,076,000 after acquiring an additional 5,019,702 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have weighed in on MSFT shares. Tigress Financial increased their target price on shares of Microsoft from $680.00 to $690.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Sanford C. Bernstein boosted their price target on shares of Microsoft from $662.00 to $722.00 and gave the company an "outperform" rating in a research report on Thursday, October 29th. The Goldman Sachs Group restated a "buy" rating and set a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. BNP Paribas Exane cut shares of Microsoft from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Finally, KeyCorp set a $625.00 price objective on shares of Microsoft in a report on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $609.54.

Microsoft Trading Up 2.7%

Shares of Microsoft stock opened at $520.99 on Wednesday. The company's 50-day moving average price is $514.06 and its 200-day moving average price is $438.92. The company has a current ratio of 1.22, a quick ratio of 1.21 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 $551.15. The company has a market cap of $3.87 trillion, a price-to-earnings ratio of 27.19, a PEG ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating the consensus estimate of $4.72 by $0.17. The company had revenue of $92.28 billion during the quarter, compared to analysts' expectations of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. Microsoft's revenue for the quarter was up 18.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.13 earnings per share. On average, equities analysts expect that Microsoft Corporation will post 19.86 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is 19.00%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure’s reported 48% growth helped lift Microsoft amid an AI-related tech rebound. Commentary also points to AI demand exceeding available capacity and argues Microsoft can fund its expansion from strong cash flow—an advantage as investors scrutinize rivals’ borrowing and spending. Article: What's Going on with Microsoft Stock on Tuesday? Article: Why Microsoft Was Rewarded for Spending Less on AI
• Positive Sentiment: Microsoft’s AI tools may reach a broader base of PC users: the company says AI can run on a computer with 8GB of memory, potentially supporting adoption of Copilot and related services. Article: AI on an 8GB PC? Yes, Says Microsoft
• Neutral Sentiment: Xbox’s reveal of a new Elder Scrolls title drew attention to Microsoft’s gaming business, but the article provides no indication of near-term financial impact. Article: Microsoft Stock Rises After The Elder Scrolls VI: Sentinel Reveal
• Negative Sentiment: A Seeking Alpha contributor downgraded Microsoft, arguing that the easiest gains may be behind the stock—an assessment that could temper expectations after its recent strength. Article: Microsoft: The Easy Gains Are Already Over (Downgrade)
• Negative Sentiment: Microsoft’s reported $45.2 billion in quarterly capital spending, largely for AI, underscores the risk that infrastructure costs could weigh on cash flow before returns fully materialize. Reports of buyouts offered to roughly 60,000 employees may also prompt questions about workforce changes. Article: 5 questions to ask if your boss offers you a buyout

Insiders Place Their Bets

In other news, EVP Amy Hood sold 41,674 shares of the business's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares in the company, valued at $265,888,830.48. The trade was a 7.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 135,504 shares of company stock valued at $68,138,024 over the last 90 days. Company insiders own 0.03% of the company's stock.

Microsoft Profile

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.

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