Microsoft Corporation $MSFT Stock: Davidson Investment Advisors Cuts Position

Key Points

• Davidson Investment Advisors reduced its Microsoft position by 2.6%, selling 6,535 shares and retaining 242,760 shares worth approximately $90.6 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, exceeding analyst expectations, with revenue up 17.7% year over year.
• The company raised its quarterly dividend from $0.91 to $0.98 per share. Analysts maintain a “Moderate Buy” consensus, with an average price target of $592.15.

Davidson Investment Advisors decreased its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.6% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 242,760 shares of the software giant's stock after selling 6,535 shares during the period. Microsoft comprises about 3.7% of Davidson Investment Advisors' investment portfolio, making the stock its 6th biggest holding. Davidson Investment Advisors' holdings in Microsoft were worth $90,555,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Frankly Finances LLC bought a new position in shares of Microsoft in the second quarter worth about $35,000. Ramsey Quantitative Systems purchased a new stake in Microsoft in the 2nd quarter worth approximately $112,000. Midwest Capital Advisors LLC increased its holdings in Microsoft by 16.6% in the 1st quarter. Midwest Capital Advisors LLC now owns 422 shares of the software giant's stock worth $156,000 after acquiring an additional 60 shares in the last quarter. Friedenthal Financial increased its holdings in Microsoft by 6.2% in the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant's stock worth $160,000 after acquiring an additional 25 shares in the last quarter. Finally, Kings Path Partners LLC raised its stake in Microsoft by 26.8% during the 2nd quarter. Kings Path Partners LLC now owns 530 shares of the software giant's stock worth $198,000 after acquiring an additional 112 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Stock Up 0.7%

Shares of NASDAQ:MSFT opened at $524.51 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The business has a 50 day simple moving average of $508.51 and a two-hundred day simple moving average of $446.17. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a market capitalization of $3.90 trillion, a PE ratio of 29.20, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (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 analysts' expectations 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% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.65 EPS. On average, equities analysts predict that Microsoft Corporation will post 19.66 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 20.27%.

Analyst Upgrades and Downgrades

MSFT has been the subject of several recent analyst reports. Mizuho upped their target price on shares of Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a report on Thursday, October 15th. Melius Research set a $665.00 price target on Microsoft and gave the company a "buy" rating in a report on Monday, October 5th. TD Cowen boosted their price objective on Microsoft from $540.00 to $625.00 and gave the company a "buy" rating in a research report on Thursday, October 15th. DA Davidson reiterated a "buy" rating and issued a $550.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Finally, Oppenheimer boosted their price target on shares of Microsoft from $515.00 to $570.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 22nd. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $592.15.

Trending Headlines about Microsoft

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 related news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the firm's stock in a transaction 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 transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was 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 three months, insiders sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is owned by insiders.

Microsoft Company 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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