Microsoft Corporation $MSFT Stock: MassMutual Private Wealth & Trust FSB Reduces Position

Key Points

• MassMutual Private Wealth & Trust FSB reduced its Microsoft stake by 2.8%, selling 10,041 shares in the third quarter; it still held 353,759 shares valued at about $181.4 million.
• Microsoft beat quarterly expectations, reporting $4.89 in earnings per share and $92.28 billion in revenue; revenue rose 18.8% year over year.
• The company raised its quarterly dividend to $0.98 per share, up from $0.91, for an annualized dividend of $3.92.

MassMutual Private Wealth & Trust FSB cut its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.8% during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor owned 353,759 shares of the software giant's stock after selling 10,041 shares during the period. Microsoft makes up approximately 4.6% of MassMutual Private Wealth & Trust FSB's holdings, making the stock its 4th largest holding. MassMutual Private Wealth & Trust FSB's holdings in Microsoft were worth $181,443,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of MSFT. Miller Global Investments LLC boosted its position in Microsoft by 17.3% in the 3rd quarter. Miller Global Investments LLC now owns 2,205 shares of the software giant's stock valued at $1,131,000 after buying an additional 326 shares during the last quarter. RFG Holdings Inc. increased its position in shares of Microsoft by 1.1% during the third quarter. RFG Holdings Inc. now owns 7,633 shares of the software giant's stock worth $3,915,000 after acquiring an additional 83 shares during the last quarter. Polaris Financial Partners acquired a new position in shares of Microsoft in the third quarter worth about $4,493,000. Boltwood Capital Management lifted its stake in shares of Microsoft by 2.0% in the third quarter. Boltwood Capital Management now owns 20,630 shares of the software giant's stock worth $10,581,000 after acquiring an additional 401 shares in the last quarter. Finally, CX Institutional boosted its holdings in Microsoft by 2.0% in the third quarter. CX Institutional now owns 121,105 shares of the software giant's stock valued at $62,115,000 after purchasing an additional 2,374 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Stock Performance

NASDAQ:MSFT traded down $5.32 during trading hours on Friday, reaching $530.61. 26,926,992 shares of the stock were exchanged, compared to its average volume of 22,422,492. The company has a quick ratio of 1.21, a current ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a 50 day simple moving average of $516.65 and a 200-day simple moving average of $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 capitalization of $3.94 trillion, a P/E ratio of 27.69, a P/E/G ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating analysts' consensus estimates of $4.72 by $0.17. The business had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The business's quarterly revenue was up 18.8% on a year-over-year basis. During the same period in the previous year, the business earned $4.13 EPS. As a group, sell-side analysts forecast that Microsoft Corporation will post 19.89 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm 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 is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft's payout ratio is presently 19.00%.

Microsoft News Summary

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

Insider Buying and Selling at Microsoft

In other news, EVP Amy Hood sold 7,305 shares of Microsoft stock in a transaction dated 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 completion of the transaction, the executive vice president directly owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. The trade was a 1.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the business's 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 sale, the chief executive officer directly owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This represents a 15.09% 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. In the last quarter, insiders have sold 135,504 shares of company stock valued at $68,138,024. 0.03% of the stock is owned by insiders.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Scotiabank raised their price objective on Microsoft from $625.00 to $650.00 and gave the company a "sector outperform" rating in a research note on Thursday, October 29th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $640.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Roth Capital initiated coverage on Microsoft in a research note on Friday. They set a "buy" rating for the company. Royal Bank Of Canada reissued an "outperform" rating and set a $640.00 price target on shares of Microsoft in a research report on Thursday, October 29th. Finally, Benchmark restated a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $609.54.

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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