Microsoft Corporation $MSFT Stock: General Partner Inc. Decreases Position

Key Points

• General Partner Inc. cut its Microsoft stake by 6.5% in the third quarter, selling 1,200 shares; it retained 17,151 shares worth about $8.8 million.
• Microsoft beat quarterly estimates, reporting EPS of $4.89 and revenue of $92.28 billion, up 18.8% year over year. It also raised its quarterly dividend to $0.98 per share from $0.91.
• Reports that Microsoft is scaling back some outside AI-computing arrangements have raised questions about demand, infrastructure spending, and returns, though the changes could also help control costs.

General Partner Inc. trimmed its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.5% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 17,151 shares of the software giant's stock after selling 1,200 shares during the quarter. Microsoft makes up approximately 4.9% of General Partner Inc.'s portfolio, making the stock its 5th largest position. General Partner Inc.'s holdings in Microsoft were worth $8,797,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in MSFT. Box Hill Private Wealth LLC raised its stake in shares of Microsoft by 0.5% in the second quarter. Box Hill Private Wealth LLC now owns 4,272 shares of the software giant's stock worth $1,593,000 after buying an additional 21 shares during the period. Strategic Wealth Advisors LLC increased its stake in shares of Microsoft by 1.7% in the second quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant's stock worth $549,000 after purchasing an additional 24 shares during the period. Lee Johnson Capital Management LLC grew its holdings in shares of Microsoft by 3.8% during the second quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock worth $256,000 after buying an additional 25 shares in the last quarter. Mann Financial Group Inc. grew its position in shares of Microsoft by 1.3% in the 2nd quarter. Mann Financial Group Inc. now owns 1,921 shares of the software giant's stock valued at $717,000 after buying an additional 25 shares during the last quarter. Finally, Riverpoint Wealth Management Holdings LLC lifted its stake in Microsoft by 0.5% in the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after purchasing an additional 26 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Microsoft news, 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 value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the firm's stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value of $3,984,293.10. Following the sale, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. This trade represents a 1.30% 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. Over the last 90 days, insiders have sold 135,504 shares of company stock valued at $68,138,024. Insiders own 0.03% of the company's stock.

Microsoft Price Performance

Microsoft stock opened at $530.61 on Friday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $559.15. The company has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a PEG ratio of 1.56 and a beta of 1.05. The business's 50 day simple moving average is $516.65 and its 200 day simple moving average is $440.18. 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 (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating 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 for the quarter, compared to analysts' expectations of $90.62 billion. During the same period in the prior year, the firm posted $4.13 earnings per share. The firm's quarterly revenue was up 18.8% on a year-over-year basis. Sell-side analysts forecast that Microsoft Corporation will post 19.89 EPS for the current year.

Microsoft Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio is currently 19.00%.

Microsoft News Roundup

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

Analyst Ratings Changes

Several research firms recently issued reports on MSFT. BNP Paribas Exane lowered Microsoft from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Truist Financial reiterated a "buy" rating and issued a $630.00 price objective (up from $600.00) on shares of Microsoft in a research report on Thursday, October 29th. Barclays raised their price target on Microsoft from $600.00 to $610.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Cantor Fitzgerald raised their price objective on Microsoft from $608.00 to $630.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Finally, Yorkville Ives assumed coverage on Microsoft in a research note on Monday, October 5th. They issued an "outperform" rating and a $615.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $609.54.

Microsoft 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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