Microsoft Corporation $MSFT Stock Position Reduced by Hutchens & Kramer Investment Management Group LLC

Key Points

• Hutchens & Kramer Investment Management Group cut its Microsoft stake by 42.3% in the second quarter, selling 2,919 shares and retaining 3,987 shares worth approximately $1.49 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly EPS of $4.89 and revenue of $92.28 billion, surpassing analyst estimates, with revenue up 18.8% year over year. The company also raised its quarterly dividend to $0.98 per share, equivalent to an annualized yield of about 0.8%.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $609.54. However, investors are monitoring Microsoft’s substantial AI-related capital spending, planned debt issuance and pressure on cloud margins.

Hutchens & Kramer Investment Management Group LLC lessened its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 42.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 3,987 shares of the software giant's stock after selling 2,919 shares during the quarter. Hutchens & Kramer Investment Management Group LLC's holdings in Microsoft were worth $1,487,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the business. Montgomery Financial Services LLC purchased a new stake in Microsoft during the 2nd quarter worth approximately $26,000. Frankly Finances LLC acquired a new position in Microsoft during the 2nd quarter valued at approximately $35,000. Bard Associates Inc. acquired a new position in Microsoft during the 2nd quarter valued at approximately $37,000. PMV Capital Advisers LLC purchased a new position in shares of Microsoft in the second quarter worth $38,000. Finally, Fiduciary Advisors Inc. raised its holdings in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after buying an additional 34 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Stock Performance

MSFT opened at $521.91 on Friday. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $551.15. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $3.88 trillion, a PE ratio of 27.24, a P/E/G ratio of 1.66 and a beta of 1.10. The firm has a 50 day moving average of $512.91 and a two-hundred day moving average of $438.43.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating the consensus estimate of $4.72 by $0.17. The business had revenue of $92.28 billion during the quarter, compared to analysts' expectations of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The business's quarterly revenue was up 18.8% compared to the same quarter last year. During the same period in the previous year, the business posted $4.13 EPS. On average, analysts anticipate that Microsoft Corporation will post 19.71 EPS for the current 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. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio is 20.46%.

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Amy Hood sold 7,305 shares of the stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the sale, the executive vice president directly owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. This trade represents a 1.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 150,314 shares of company stock valued at $75,404,992 in the last three months. Company insiders own 0.03% of the company's stock.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Scotiabank lifted their price objective on shares of Microsoft from $625.00 to $650.00 and gave the stock a "sector outperform" rating in a research note on Thursday. CLSA reissued an "outperform" rating on shares of Microsoft in a report on Thursday, July 30th. Tigress Financial upped their target price on Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. The Goldman Sachs Group restated a "buy" rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Finally, Oppenheimer raised their target price on Microsoft from $570.00 to $625.00 and gave the stock an "outperform" rating in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, Microsoft presently has a consensus rating of "Moderate Buy" and a consensus price target of $609.54.

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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