Microsoft Corporation $MSFT Stock: NS Partners Ltd Cuts Stake

Key Points

• NS Partners cut its Microsoft stake by 14.5% in the second quarter, selling 55,698 shares and retaining 328,766 shares valued at approximately $122.6 million. Microsoft remains about 5.3% of the firm’s portfolio.
• Microsoft reported stronger-than-expected quarterly results, with $4.74 in EPS and $90.01 billion in revenue, while analysts maintain a broadly bullish view with a “Moderate Buy” consensus and a $592.15 price target.
• Azure growth and AI monetization are key catalysts, but heavy data-center spending, margin pressure and operational challenges could weigh on the stock. Microsoft also raised its quarterly dividend to $0.98 per share, implying a 0.7% yield.

NS Partners Ltd trimmed its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 14.5% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 328,766 shares of the software giant's stock after selling 55,698 shares during the quarter. Microsoft comprises approximately 5.3% of NS Partners Ltd's holdings, making the stock its 4th biggest position. NS Partners Ltd's holdings in Microsoft were worth $122,636,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. 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 in the last quarter. Friedenthal Financial lifted its stake in shares of Microsoft by 6.2% during the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant's stock valued at $160,000 after buying an additional 25 shares in the last quarter. Sequent Planning LLC boosted its holdings in Microsoft by 0.7% in the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock worth $1,382,000 after buying an additional 25 shares during the period. Lee Johnson Capital Management LLC boosted its holdings in Microsoft by 3.8% in the 2nd 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 during the period. Finally, Riverpoint Wealth Management Holdings LLC boosted its holdings 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 buying an additional 26 shares during the period. Institutional investors own 71.13% of the company's stock.

Microsoft News Summary

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 Performance

NASDAQ MSFT opened at $524.51 on Monday. The stock has a market capitalization of $3.90 trillion, a PE ratio of 29.20, a P/E/G ratio of 1.68 and a beta of 1.10. The business has a 50 day simple moving average of $508.51 and a two-hundred day simple moving average of $446.69. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion for 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%. The company's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the firm earned $3.65 EPS. On average, research analysts predict that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

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

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Royal Bank Of Canada reiterated an "outperform" rating on shares of Microsoft in a research note on Thursday, September 10th. Bank of America boosted their price objective on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. Wells Fargo & Company upped their price objective on Microsoft from $700.00 to $725.00 and gave the stock an "overweight" rating in a research note on Thursday, October 1st. Benchmark reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Finally, Rothschild & Co Redburn set a $440.00 target price on Microsoft in a research report on Monday, September 21st. Forty-three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $592.15.

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Amy Hood sold 7,305 shares of the stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the completion of the transaction, the executive vice president owned 555,396 shares in the company, valued at $302,924,086.32. This trade represents a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the 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 transaction, 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 position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 150,314 shares of company stock worth $75,404,992. 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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