Microsoft Corporation $MSFT Stock Position Decreased by Private Capital Advisors Inc.

Key Points

• Private Capital Advisors cut its Microsoft stake by 4% in the third quarter, selling 2,535 shares and retaining 61,547 shares valued at about $31.6 million. Institutional investors and hedge funds own 71.13% of Microsoft stock.
• Microsoft beat quarterly earnings and revenue estimates, with revenue up 18.8% year over year. The company also raised its quarterly dividend from $0.91 to $0.98 per share.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $609.54, while reports of Microsoft scaling back some AI capacity commitments have raised questions about spending, demand, and returns.

Private Capital Advisors Inc. reduced its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.0% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 61,547 shares of the software giant's stock after selling 2,535 shares during the period. Microsoft comprises 2.7% of Private Capital Advisors Inc.'s investment portfolio, making the stock its 7th biggest position. Private Capital Advisors Inc.'s holdings in Microsoft were worth $31,567,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of MSFT. Hedeker Wealth LLC boosted its stake in Microsoft by 6.9% during the 2nd quarter. Hedeker Wealth LLC now owns 55,236 shares of the software giant's stock valued at $20,604,000 after purchasing an additional 3,546 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its position in Microsoft by 4.0% in the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant's stock worth $85,604,000 after purchasing an additional 8,773 shares during the last quarter. D.B. Root & Company LLC bought a new position in Microsoft in the 2nd quarter worth about $3,652,000. Dearborn Partners LLC acquired a new stake in shares of Microsoft in the second quarter valued at approximately $75,641,000. Finally, GTS Securities LLC increased its stake in shares of Microsoft by 44.6% in the second quarter. GTS Securities LLC now owns 271,597 shares of the software giant's stock valued at $101,311,000 after purchasing an additional 83,734 shares during the period. 71.13% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of the 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 sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares of the company's stock, valued at $265,888,830.48. This trade represents a 7.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 135,504 shares of company stock worth $68,138,024. 0.03% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on MSFT shares. Evercore raised Microsoft from an "underperform" rating to an "outperform" rating in a report on Monday, October 5th. William Blair assumed coverage on Microsoft in a report on Monday, October 5th. They issued an "outperform" rating for the company. DA Davidson raised their target price on Microsoft from $550.00 to $650.00 and gave the company a "buy" rating in a research report on Thursday, October 29th. Citigroup reaffirmed a "market outperform" rating on shares of Microsoft in a research note on Thursday, October 29th. Finally, Bank of America boosted their price target on Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research report on Tuesday, September 1st. One investment analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $609.54.

Microsoft Stock Performance

NASDAQ:MSFT opened at $530.61 on Friday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $559.15. The company has a current ratio of 1.22, a quick ratio of 1.21 and a debt-to-equity ratio of 0.07. The company has a 50-day moving average of $516.65 and a 200-day moving average of $440.18. The firm has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The business had revenue of $92.28 billion for the quarter, compared to the consensus estimate of $90.62 billion. During the same period in the previous year, the firm earned $4.13 EPS. The business's revenue for the quarter was up 18.8% on a year-over-year basis. Analysts forecast that Microsoft Corporation will post 19.92 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. Investors of record on Thursday, November 19th will be issued 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 dividend on an annualized basis and a yield of 0.7%. Microsoft's payout ratio is 19.00%.

Key Stories Impacting Microsoft

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 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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