Microsoft Corporation $MSFT Stock Position Lowered by Wedbush Securities Inc.

Key Points

• Wedbush Securities trimmed its Microsoft position by 0.9% in the second quarter, selling 2,076 shares and retaining 237,199 shares valued at approximately $88.5 million. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft reported quarterly earnings of $4.74 per share and revenue of $90.01 billion, surpassing estimates, while revenue increased 17.7% year over year. The stock opened at $535.07, near its 52-week high of $553.72, with a market capitalization of roughly $3.97 trillion.
• The company raised its quarterly dividend to $0.98 per share from $0.91, implying an annualized dividend of $3.92 and a 0.7% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $578.73.

Wedbush Securities Inc. lowered its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 0.9% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 237,199 shares of the software giant's stock after selling 2,076 shares during the period. Microsoft makes up 2.3% of Wedbush Securities Inc.'s portfolio, making the stock its 8th biggest position. Wedbush Securities Inc.'s holdings in Microsoft were worth $88,480,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Frankly Finances LLC acquired a new stake in shares of Microsoft during the 2nd quarter valued at about $35,000. Bard Associates Inc. bought a new stake in Microsoft during the second quarter worth approximately $37,000. PMV Capital Advisers LLC bought a new stake in Microsoft during the second quarter worth approximately $38,000. Fiduciary Advisors Inc. grew its stake in Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock valued at $47,000 after buying an additional 34 shares during the last quarter. Finally, Persistent Asset Partners Ltd acquired a new position in Microsoft in the 2nd quarter valued at $60,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft Stock Performance

MSFT stock opened at $535.07 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a 50 day moving average price of $501.15 and a 200 day moving average price of $434.73. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The stock has a market capitalization of $3.97 trillion, a PE ratio of 29.79, a price-to-earnings-growth ratio of 1.72 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the business posted $3.65 EPS. The firm's quarterly revenue was up 17.7% on a year-over-year basis. Analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's payout ratio is currently 20.27%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Insider Transactions at Microsoft

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares of the company's stock, valued at $265,888,830.48. This represents a 7.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction on 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 transaction, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 143,009 shares of company stock valued at $71,420,699 over the last three months. 0.03% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on MSFT. Evercore raised shares of Microsoft from an "underperform" rating to an "outperform" rating in a research report on Monday, October 5th. Barclays reduced their target price on shares of Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Tigress Financial lifted their target price on Microsoft from $680.00 to $690.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. The Goldman Sachs Group restated a "buy" rating and set a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Finally, DA Davidson restated a "buy" rating and issued a $550.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Microsoft presently has an average rating of "Moderate Buy" and an average price target of $578.73.

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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