Microsoft Corporation $MSFT Stock Position Cut by Elite Wealth Management Inc.

Key Points

• Elite Wealth Management cut its Microsoft position by 4.2% in the first quarter, selling 10,454 shares and retaining 236,280 shares worth approximately $87.5 million. Microsoft remains the firm’s largest holding, representing 28.4% of its portfolio, while institutional investors own 71.13% of the stock.
• Microsoft reported strong quarterly results, with revenue up 17.7% to $90.01 billion and earnings of $4.74 per share, beating analyst estimates. Wall Street remains bullish, with 42 Buy ratings, five Hold ratings and an average price target of $560.27.
• AI spending and valuation are key risks as rising data-center investment could pressure margins and cash flow; Microsoft insiders have also sold shares recently. The company will pay a quarterly dividend of $0.91 per share, equal to a 0.7% yield.

Elite Wealth Management Inc. cut its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.2% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 236,280 shares of the software giant's stock after selling 10,454 shares during the quarter. Microsoft makes up approximately 28.4% of Elite Wealth Management Inc.'s investment portfolio, making the stock its largest holding. Elite Wealth Management Inc.'s holdings in Microsoft were worth $87,464,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the company. WFA Asset Management Corp grew its holdings in Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant's stock worth $427,000 after purchasing an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. increased its position in shares of Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant's stock worth $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC lifted its holdings in shares of Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant's stock valued at $1,144,000 after purchasing an additional 2,138 shares during the last quarter. Wealth Group Ltd. boosted its position in shares of Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant's stock worth $1,000,000 after purchasing an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC boosted its position in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant's stock worth $9,735,000 after purchasing an additional 96 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL
• Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target
• Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft
• Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand
• Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft's AI Data Center Push: Growth Engine or Capex Trap?
• Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published

Wall Street Analyst Weigh In

Several research analysts recently issued reports on MSFT shares. Citigroup reaffirmed a "buy" rating and set a $600.00 target price (up from $570.00) on shares of Microsoft in a research report on Tuesday, July 28th. DZ Bank restated a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Wedbush restated an "outperform" rating and set a $575.00 price objective on shares of Microsoft in a report on Wednesday, May 13th. New Street Research decreased their price objective on shares of Microsoft from $675.00 to $600.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Microsoft in a research note on Monday, May 4th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and an average price target of $560.27.

Insider Activity at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the firm'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 owned 100,447 shares of the company's stock, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 37,310 shares of company stock valued at $17,256,219. Company insiders own 0.03% of the company's stock.

Microsoft Stock Down 2.3%

Shares of MSFT stock opened at $492.43 on Thursday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The firm has a market capitalization of $3.66 trillion, a PE ratio of 27.42, a P/E/G ratio of 1.62 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock's 50-day simple moving average is $408.32 and its 200-day simple moving average is $407.67.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company's revenue 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. Equities analysts expect that Microsoft Corporation will post 19.58 earnings per share for the current year.

Microsoft Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft's payout ratio is presently 20.27%.

Microsoft Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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