Microsoft Corporation $MSFT Stock Position Cut by American National Bank & Trust

Key Points

• American National Bank & Trust cut its Microsoft position by 4% in the third quarter, selling 3,869 shares. It still held 93,988 shares, valued at about $48.2 million, making Microsoft its fourth-largest holding.
• Microsoft beat quarterly earnings and revenue expectations, with revenue up 18.8% year over year, and raised its quarterly dividend from $0.91 to $0.98 per share.
• Reports that Microsoft is scaling back some rented AI-computing capacity and consolidating neocloud partnerships have raised questions about AI demand and spending returns, though the company’s positive free cash flow may offer reassurance.

American National Bank & Trust trimmed its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.0% during the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 93,988 shares of the software giant's stock after selling 3,869 shares during the quarter. Microsoft comprises about 4.3% of American National Bank & Trust's holdings, making the stock its 4th biggest holding. American National Bank & Trust's holdings in Microsoft were worth $48,206,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Bank of America Corp DE bought a new stake in Microsoft during the second quarter valued at about $27,338,370,000. Legal & General Group Plc purchased a new stake in Microsoft in the 2nd quarter worth approximately $18,306,443,000. Jupiter Topco LLC purchased a new position in Microsoft during the second quarter valued at approximately $6,928,664,000. Canada Pension Plan Investment Board purchased a new position in Microsoft during the second quarter valued at approximately $5,653,812,000. Finally, The Manufacturers Life Insurance Company bought a new position in shares of Microsoft in the second quarter worth approximately $4,000,706,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft Trading Down 1.0%

Shares of NASDAQ MSFT opened at $530.61 on Friday. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $559.15. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.21. The business's 50 day moving average is $516.65 and its two-hundred day moving average is $440.18. The stock has a market capitalization of $3.94 trillion, a P/E ratio of 27.69, a PEG ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.17. The business had revenue of $92.28 billion during the quarter, compared to analyst estimates of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company's revenue for the quarter was up 18.8% on a year-over-year basis. During the same period last year, the company earned $4.13 EPS. As a group, research analysts expect that Microsoft Corporation will post 19.92 EPS 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 given a $0.98 dividend. This is a boost from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is 19.00%.

Insiders Place Their Bets

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction on 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 transaction, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 sale, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. This 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 sold 135,504 shares of company stock valued at $68,138,024. 0.03% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on MSFT. Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a research note on Thursday, October 29th. DA Davidson boosted their price objective on Microsoft from $550.00 to $650.00 and gave the company a "buy" rating in a research report on Thursday, October 29th. Sanford C. Bernstein upped their price objective on Microsoft from $662.00 to $722.00 and gave the stock an "outperform" rating in a research note on Thursday, October 29th. Mizuho increased their target price on Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a research report on Thursday, October 15th. Finally, Evercore raised Microsoft from an "underperform" rating to an "outperform" rating in a research note on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $609.54.

Key Microsoft News

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

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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