Microsoft Corporation $MSFT Stock: Denali Advisors LLC Reduces Holdings

Key Points

• Denali Advisors reduced its Microsoft stake by 17.7% in the second quarter, selling 12,346 shares and retaining 57,369 shares worth approximately $21.4 million. Microsoft remains Denali’s fourth-largest holding at 2.2% of its portfolio.
• Microsoft reported strong quarterly results, with earnings per share of $4.74 and revenue of $90.01 billion, exceeding analyst estimates; revenue rose 17.7% year over year.
• Insiders have been selling shares while analysts remain broadly bullish. Insiders sold about $75.4 million of stock over the past 90 days, but 43 analysts rate Microsoft a Buy and the consensus price target is $592.15.

Denali Advisors LLC decreased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 17.7% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 57,369 shares of the software giant's stock after selling 12,346 shares during the quarter. Microsoft comprises 2.2% of Denali Advisors LLC's investment portfolio, making the stock its 4th largest holding. Denali Advisors LLC's holdings in Microsoft were worth $21,400,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Frankly Finances LLC acquired a new position in Microsoft during the second quarter worth $35,000. Fiduciary Advisors Inc. lifted its stake in shares of Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after buying an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new stake in shares of Microsoft during the second quarter worth $60,000. Glynn Capital Management LLC lifted its position in shares of Microsoft by 34.2% during the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock valued at $95,000 after acquiring an additional 65 shares during the period. Finally, Ramsey Quantitative Systems acquired a new stake in shares of Microsoft during the 2nd quarter worth approximately $112,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Insider Activity at Microsoft

In related news, EVP Takeshi Numoto sold 4,810 shares of Microsoft 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 completion of the sale, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by insiders.

Microsoft Price Performance

Shares of Microsoft stock opened at $524.51 on Friday. The company's fifty day simple moving average is $508.51 and its two-hundred day simple moving average is $446.17. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The firm has a market cap of $3.90 trillion, a PE ratio of 30.16, a price-to-earnings-growth 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.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the business earned $3.65 EPS. The business's revenue for the quarter was up 17.7% on a year-over-year basis. As a group, equities analysts expect that Microsoft Corporation will post 19.65 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 dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. William Blair initiated coverage on shares of Microsoft in a research note on Monday, October 5th. They issued an "outperform" rating for the company. Citizens Jmp reissued a "market outperform" rating and set a $550.00 price target on shares of Microsoft in a research note on Tuesday, September 15th. Guggenheim restated a "buy" rating and set a $586.00 price target on shares of Microsoft in a report on Wednesday. Sanford C. Bernstein upped their target price on Microsoft from $660.00 to $662.00 and gave the company an "outperform" rating in a report on Monday, October 19th. Finally, Royal Bank Of Canada reissued an "outperform" rating on shares of Microsoft in a research note on Thursday, September 10th. Forty-three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $592.15.

Key Stories Impacting 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

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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