Microsoft Corporation $MSFT Stock: Armstrong Henry H Associates Inc. Lowers Stake

Key Points

• Armstrong Henry H Associates trimmed its Microsoft stake by 0.5% in the third quarter, selling 2,998 shares; it still held 619,403 shares valued at about $317.7 million.
• Institutional investors own 71.13% of Microsoft shares, with several major firms—including State Street and Amundi—increasing their positions in the periods reported.
• Microsoft beat quarterly earnings and revenue estimates and raised its dividend, while reports that it is scaling back some external AI-computing commitments have raised questions about demand, spending, and returns on its AI buildout.

Armstrong Henry H Associates Inc. lessened its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 0.5% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 619,403 shares of the software giant's stock after selling 2,998 shares during the period. Microsoft makes up approximately 29.7% of Armstrong Henry H Associates Inc.'s holdings, making the stock its 2nd largest position. Armstrong Henry H Associates Inc.'s holdings in Microsoft were worth $317,692,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in MSFT. State Street Corp increased its position in Microsoft by 2.9% during the second quarter. State Street Corp now owns 315,653,206 shares of the software giant's stock valued at $117,744,959,000 after acquiring an additional 8,944,917 shares during the last quarter. Bank of America Corp DE purchased a new position in Microsoft in the second quarter worth about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Microsoft by 0.9% in the second 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 purchasing an additional 543,172 shares during the last quarter. Legal & General Group Plc purchased a new stake in shares of Microsoft during the 2nd quarter valued at about $18,306,443,000. Finally, Amundi lifted its stake in shares of Microsoft by 12.0% in the 2nd quarter. Amundi now owns 46,694,778 shares of the software giant's stock worth $17,418,076,000 after purchasing an additional 5,019,702 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

More Microsoft News

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

Insiders Place Their Bets

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated Tuesday, September 1st. The shares were 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 owned 486,763 shares of the company's stock, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the firm's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the transaction, the executive vice president owned 533,624 shares of the company's stock, valued at approximately $265,888,830.48. The trade was 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. In the last 90 days, insiders have sold 135,504 shares of company stock valued at $68,138,024. 0.03% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on MSFT. KeyCorp set a $625.00 price objective on shares of Microsoft in a report on Thursday, October 29th. Wolfe Research raised shares of Microsoft from a "hold" rating to a "strong-buy" rating in a report on Thursday, October 29th. The Goldman Sachs Group reiterated a "buy" rating and issued a $640.00 price target on shares of Microsoft in a research report on Thursday, July 30th. DA Davidson increased their price target on shares of Microsoft from $550.00 to $650.00 and gave the stock a "buy" rating in a research report on Thursday, October 29th. Finally, Mizuho lifted their price target on shares of Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a research note on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $609.54.

Microsoft Price Performance

NASDAQ:MSFT opened at $530.61 on Friday. The business's 50-day simple moving average is $516.65 and its two-hundred day simple moving average is $440.18. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $559.15. The stock has a market cap of $3.94 trillion, a PE ratio of 27.69, a P/E/G ratio of 1.56 and a beta of 1.05. The company has a quick ratio of 1.21, a current ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share 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 firm had revenue of $92.28 billion during the quarter, compared to analyst estimates of $90.62 billion. During the same quarter in the prior year, the company posted $4.13 earnings per share. The business's quarterly revenue was up 18.8% compared to the same quarter last year. As a group, analysts forecast that Microsoft Corporation will post 19.92 EPS for the current fiscal year.

Microsoft Increases Dividend

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

Microsoft Company Profile

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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