Microsoft Corporation $MSFT Stock: Sapient Capital LLC Decreases Position

Key Points

• Sapient Capital cut its Microsoft position by 8.4% in the second quarter, selling 40,222 shares and retaining 438,394 shares worth approximately $163.5 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported stronger-than-expected quarterly results, including $4.89 in EPS, $92.28 billion in revenue, and 48% Azure growth. However, the company lowered its 2026 capital-expenditure forecast to $170 billion amid capacity delays and is offering buyouts to about 60,000 employees.
• Wall Street remains broadly bullish, with 44 Buy ratings and a consensus price target of $596.07. Microsoft also raised its quarterly dividend to $0.98 per share, while executives sold shares and insiders sold approximately $75.4 million of stock during the quarter.

Sapient Capital LLC reduced its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 8.4% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 438,394 shares of the software giant's stock after selling 40,222 shares during the period. Microsoft accounts for about 1.9% of Sapient Capital LLC's investment portfolio, making the stock its 7th biggest position. Sapient Capital LLC's holdings in Microsoft were worth $163,530,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Atlas Brown Inc. grew its position in Microsoft by 1.0% in the second quarter. Atlas Brown Inc. now owns 23,402 shares of the software giant's stock worth $8,729,000 after acquiring an additional 230 shares in the last quarter. Professional Financial Advisors LLC raised its position in Microsoft by 8.7% during the second quarter. Professional Financial Advisors LLC now owns 8,170 shares of the software giant's stock valued at $3,048,000 after purchasing an additional 657 shares during the period. Arbor Wealth Advisors LLC raised its position in Microsoft by 3.6% during the second quarter. Arbor Wealth Advisors LLC now owns 3,278 shares of the software giant's stock valued at $1,223,000 after purchasing an additional 115 shares during the period. Fluent Financial LLC bought a new stake in shares of Microsoft in the 2nd quarter valued at approximately $5,366,000. Finally, Alliance Wealth Advisors LLC lifted its stake in shares of Microsoft by 1.4% in the 2nd quarter. Alliance Wealth Advisors LLC now owns 10,027 shares of the software giant's stock valued at $3,740,000 after purchasing an additional 136 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on 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 owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 150,314 shares of company stock worth $75,404,992. 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 reported earnings of $4.89 per share versus the $4.71–$4.72 consensus and revenue of $92.28 billion, up 19% year over year and above estimates of approximately $90.6 billion. Net income increased 32%, while the company extended its streak of record quarterly revenue. Microsoft Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Azure growth accelerated to 48%, generating approximately $33.2 billion in quarterly revenue. Stronger-than-expected cloud demand suggests Microsoft’s investments in artificial intelligence and Copilot-related services are beginning to translate into significant sales and profit growth. Microsoft Azure Revenue Surges
• Neutral Sentiment: Microsoft disclosed that commercial arrangements with OpenAI produced roughly $10 billion of revenue during the quarter, highlighting the value of the partnership but also the company’s substantial financial dependence on a single AI ecosystem. Microsoft Recorded $10 Billion in Revenue From OpenAI
• Negative Sentiment: Microsoft lowered its 2026 capital-expenditure forecast to $170 billion from $175 billion, citing delays in third-party capacity. The reduction may ease cash-flow pressure, but it also raises concerns that infrastructure constraints could limit Azure growth and delay returns on AI investment. Microsoft Cuts Capex Forecast on AI Capacity Delays
• Negative Sentiment: The company is offering voluntary buyouts to roughly 60,000 employees while spending heavily on data centers. Although the effort could improve long-term efficiency, investors may view it as evidence that Microsoft is managing mounting AI-related costs. Rising interest rates also pose a valuation risk for the high-growth technology sector.

Wall Street Analysts Forecast Growth

MSFT has been the subject of a number of recent research reports. TD Cowen lifted their target price on Microsoft from $540.00 to $625.00 and gave the stock a "buy" rating in a report on Thursday, October 15th. Oppenheimer increased their price target on Microsoft from $570.00 to $625.00 and gave the company an "outperform" rating in a report on Monday. CLSA restated an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. William Blair started coverage on Microsoft in a research report on Monday, October 5th. They issued an "outperform" rating for the company. Finally, Needham & Company LLC started coverage on shares of Microsoft in a research note on Wednesday, September 23rd. They set a "buy" rating for the company. Forty-four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $596.07.

Microsoft Stock Down 0.1%

Shares of NASDAQ:MSFT opened at $531.01 on Thursday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $551.15. The business has a 50 day simple moving average of $511.18 and a two-hundred day simple moving average of $437.96. The firm has a market capitalization of $3.94 trillion, a PE ratio of 29.57, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.

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, beating analysts' consensus estimates of $4.71 by $0.18. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $92.28 billion for the quarter, compared to analysts' expectations of $90.62 billion. During the same quarter in the prior year, the firm posted $4.13 earnings per share. The company's quarterly revenue was up 18.8% on a year-over-year basis. On average, equities analysts predict that Microsoft Corporation will post 19.66 EPS for the current year.

Microsoft Increases Dividend

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

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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