Microsoft Corporation $MSFT Stock Position Lessened by Clifford Swan Investment Counsel LLC

Key Points

• Clifford Swan Investment Counsel reduced its Microsoft stake by 0.5%, selling 1,407 shares and retaining 298,885 shares valued at approximately $111.5 million. Microsoft remains the fund’s third-largest holding, while institutions and hedge funds collectively own 71.13% of the stock.
• Microsoft reported quarterly earnings of $4.74 per share on $90.01 billion in revenue, exceeding analyst expectations, with revenue up 17.7% year over year. Shares opened at $524.51, near their 12-month high, and the company has a market capitalization of roughly $3.9 trillion.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $592.15. Microsoft also raised its quarterly dividend to $0.98 per share, while investors continue to monitor AI spending, Azure growth, margins and upcoming earnings.

Clifford Swan Investment Counsel LLC reduced its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 0.5% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 298,885 shares of the software giant's stock after selling 1,407 shares during the period. Microsoft comprises about 3.6% of Clifford Swan Investment Counsel LLC's investment portfolio, making the stock its 3rd biggest position. Clifford Swan Investment Counsel LLC's holdings in Microsoft were worth $111,490,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Bank of America Corp DE bought a new position in shares of Microsoft in the second quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Microsoft by 0.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock valued at $24,013,297,000 after buying an additional 543,172 shares during the period. Legal & General Group Plc bought a new position in shares of Microsoft in the 2nd quarter worth $18,306,443,000. Amundi boosted its holdings in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after buying an additional 9,814,598 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $524.51 on Monday. The firm has a market cap of $3.90 trillion, a price-to-earnings ratio of 29.20, a PEG ratio of 1.68 and a beta of 1.10. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company's fifty day simple moving average is $508.51 and its 200 day simple moving average is $446.69. 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 announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share 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 analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the prior year, the business earned $3.65 EPS. As a group, research analysts forecast that Microsoft Corporation will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is 20.27%.

Insider Transactions at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction dated Wednesday, August 5th. The stock was 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 directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several brokerages have recently issued reports on MSFT. BMO Capital Markets boosted their price target on shares of Microsoft from $515.00 to $600.00 and gave the company an "outperform" rating in a report on Tuesday, October 20th. Argus decreased their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research note on Friday, July 10th. Jefferies Financial Group increased their price target on Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a report on Wednesday, October 14th. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Microsoft in a research report on Monday, September 28th. Finally, KeyCorp reiterated an "overweight" rating on shares of Microsoft in a report on Thursday, September 3rd. Forty-three research 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's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $592.15.

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 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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