Microsoft Corporation $MSFT Stock Position Decreased by Northstar Asset Management Inc.

Key Points

• Northstar Asset Management reduced its Microsoft position by 3.2% in the second quarter, selling 1,392 shares and retaining 41,891 shares valued at approximately $15.6 million. Microsoft remains the fund’s fifth-largest holding and represents 4.6% of its portfolio.
• Analysts remain broadly bullish on Microsoft. Forty-three analysts rate the stock Buy, compared with four Holds and two Sells, producing a “Moderate Buy” consensus and an average price target of $592.15.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, beating estimates, while revenue rose 17.7% year over year. The company also increased its quarterly dividend to $0.98 per share, though insider selling and significant AI infrastructure spending remain factors for investors to monitor.

Northstar Asset Management Inc. trimmed its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 3.2% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 41,891 shares of the software giant's stock after selling 1,392 shares during the period. Microsoft accounts for about 4.6% of Northstar Asset Management Inc.'s investment portfolio, making the stock its 5th largest position. Northstar Asset Management Inc.'s holdings in Microsoft were worth $15,626,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Bank of America Corp DE acquired a new stake in Microsoft during the second quarter worth approximately $27,338,370,000. Legal & General Group Plc purchased a new position in shares of Microsoft during the 2nd quarter worth about $18,306,443,000. Amundi boosted its position in shares of Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Microsoft by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after purchasing an additional 2,784,809 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of Microsoft by 64.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock valued at $8,982,083,000 after buying an additional 9,493,778 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

MSFT has been the subject of several research analyst reports. Barclays upped their price target on Microsoft from $512.00 to $600.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 13th. UBS Group boosted their price objective on Microsoft from $525.00 to $675.00 and gave the stock a "buy" rating in a research note on Thursday, October 15th. Piper Sandler reissued an "overweight" rating on shares of Microsoft in a research report on Tuesday. The Goldman Sachs Group reissued a "buy" rating and issued a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. Finally, Jefferies Financial Group increased their target price on Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a research note on Wednesday, October 14th. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $592.15.

Insider Activity at Microsoft

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. 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 ninety days, insiders sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company's stock.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $524.51 on Friday. The stock has a market cap of $3.90 trillion, a P/E ratio of 29.20, a P/E/G ratio of 1.67 and a beta of 1.10. The firm's 50-day simple moving average is $508.51 and its 200 day simple moving average is $446.17. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The company 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 firm's revenue for the quarter was up 17.7% on a year-over-year basis. During the same period last year, the firm earned $3.65 EPS. Equities analysts expect that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is a positive change 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 currently 20.27%.

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

About Microsoft

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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