Microsoft Corporation $MSFT Stock: Fosun International Ltd Decreases Holdings

Key Points

• Fosun International cut its Microsoft stake by 86.3% in the second quarter, selling 8,191 shares and retaining 1,300 shares valued at approximately $485,000. Institutional investors collectively own 71.13% of Microsoft.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus from 49 analysts and an average price target of $592.15, despite some recent rating and price-target reductions.
• Microsoft reported quarterly EPS and revenue above consensus estimates and increased its quarterly dividend to $0.98 per share. Investors remain focused on Azure growth, AI monetization and heavy infrastructure spending ahead of the next earnings report.

Fosun International Ltd decreased its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 86.3% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 1,300 shares of the software giant's stock after selling 8,191 shares during the quarter. Fosun International Ltd's holdings in Microsoft were worth $485,000 as of its most recent filing with the SEC.

Several other hedge funds also recently made changes to their positions in the company. Frankly Finances LLC purchased a new position in Microsoft during the 2nd quarter worth approximately $35,000. Bard Associates Inc. acquired a new position in Microsoft during the second quarter worth approximately $37,000. PMV Capital Advisers LLC acquired a new position in Microsoft during the second quarter worth approximately $38,000. Fiduciary Advisors Inc. lifted its stake in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after buying an additional 34 shares during the last quarter. Finally, Persistent Asset Partners Ltd acquired a new stake in shares of Microsoft in the second quarter valued at approximately $60,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. KeyCorp reissued an "overweight" rating on shares of Microsoft in a report on Thursday, September 3rd. DA Davidson reaffirmed a "buy" rating and issued a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Microsoft in a research report on Thursday, September 10th. 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, Argus lowered their price objective on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a research report on Friday, July 10th. Forty-three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $592.15.

Key Headlines 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 Stock Up 0.7%

Microsoft stock opened at $524.51 on Friday. The stock has a 50 day moving average of $508.51 and a two-hundred day moving average of $446.17. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The stock has a market capitalization of $3.90 trillion, a price-to-earnings ratio of 29.20, a PEG ratio of 1.68 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results 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 business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.65 earnings per share. As a group, research analysts expect that Microsoft Corporation will post 19.66 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This is a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio is 20.27%.

Insider Buying and Selling

In related news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction on 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. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the business's stock in a transaction 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 completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 150,314 shares of company stock valued at $75,404,992 in the last ninety days. Company insiders own 0.03% of the company's stock.

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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