Microsoft Corporation $MSFT Stock Sold by 1ST Source Bank

Key Points

• 1ST Source Bank reduced its Microsoft position by 1.4% in the second quarter, selling 1,098 shares and retaining 77,416 shares valued at $28.9 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly revenue of $90.01 billion and EPS of $4.74, exceeding analyst expectations, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98, or $3.92 annually.
• Analyst sentiment remains broadly positive, with 41 Buy ratings and a consensus “Moderate Buy” rating and $578.73 price target, although concerns include AI-spending execution, Copilot adoption and the loss of senior AI talent to competitors.

1ST Source Bank lowered its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.4% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 77,416 shares of the software giant's stock after selling 1,098 shares during the quarter. Microsoft makes up approximately 1.3% of 1ST Source Bank's holdings, making the stock its 10th biggest holding. 1ST Source Bank's holdings in Microsoft were worth $28,878,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. Frankly Finances LLC acquired a new position in shares of Microsoft in the second quarter worth about $35,000. MidAtlantic Capital Management Inc. purchased a new position in shares of Microsoft during the 4th quarter valued at approximately $59,000. Fiduciary Advisors Inc. grew its position in shares of Microsoft by 37.4% during 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 in the last quarter. Lifetime Wealth Management P.C. acquired a new stake in shares of Microsoft during the fourth quarter worth approximately $101,000. Finally, Glynn Capital Management LLC grew its holdings in Microsoft by 34.2% during the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant's stock worth $95,000 after acquiring an additional 65 shares in the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Melius Research upgraded Microsoft to Buy from Hold and raised its price target to $665. The firm said rising corporate concerns about AI risks could increase demand for Microsoft’s security, governance and compliance products, while positioning Azure as a relatively dependable way to participate in the AI trend. Microsoft stock rises as Melius upgrades to Buy
• Positive Sentiment: Broad market strength also supported MSFT. The Nasdaq reached a record as megacap technology stocks rallied on optimism about earnings growth, with Microsoft among the sector leaders. Expectations for strong technology-sector profits continue to support investor appetite for the shares. Nasdaq hits record as megacap gains offset elevated Treasury yields
• Positive Sentiment: Microsoft continues expanding Copilot’s enterprise usefulness. Wood Mackenzie connected its proprietary energy data and analytics to Microsoft Copilot through a new Model Context Protocol connector, providing another example of specialized business content being integrated into Microsoft’s AI ecosystem. Wood Mackenzie connects energy intelligence with Microsoft Copilot
• Positive Sentiment: Upcoming Xbox and Xbox Game Pass releases provided a smaller consumer-business catalyst. New game launches may support engagement and subscription activity, although the impact is likely less significant than Azure and AI developments. Microsoft stock rises ahead of new Xbox game releases
• Neutral Sentiment: Microsoft and Meta reportedly encouraged employees to reduce their use of Anthropic’s Claude in favor of internal AI tools. The move could lower Microsoft’s external AI expenses and strengthen Copilot adoption, but it also indicates ongoing competition and uncertainty over which AI models will deliver the best economics. Microsoft and Meta steer staff from Anthropic Claude to in-house AI
• Negative Sentiment: Amazon hired longtime Microsoft AI executive Pedram Rezaei, formerly associated with Copilot. The departure could raise concerns about retaining senior AI talent as cloud and software rivals intensify their competition. Amazon hires a Microsoft AI leader
• Negative Sentiment: Investors remain focused on execution risks. Microsoft’s large backlog offers revenue visibility, but the timing of recognition, infrastructure spending and cash conversion could limit near-term benefits. Questions also remain about whether Copilot can become a breakout AI application. How much revenue visibility does Microsoft’s backlog provide?

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on MSFT. Morgan Stanley lowered shares of Microsoft from an "overweight" rating to a "negative" rating in a research note on Monday. Scotiabank boosted their price objective on Microsoft from $510.00 to $615.00 and gave the company an "outperform" rating in a report on Monday. Guggenheim restated a "buy" rating and set a $586.00 price objective on shares of Microsoft in a research note on Monday, July 27th. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Microsoft in a report on Monday, September 28th. Finally, Weiss Ratings upgraded shares of Microsoft from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, August 27th. Forty-one analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $578.73.

Insiders Place Their Bets

In other Microsoft news, 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 transaction of $4,878,900.00. Following the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the business's 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 transaction, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 143,009 shares of company stock worth $71,420,699 over the last 90 days. Insiders own 0.03% of the company's stock.

Microsoft Stock Up 1.5%

MSFT stock opened at $525.18 on Tuesday. 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 Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The firm's 50-day simple moving average is $492.81 and its 200 day simple moving average is $431.07. The stock has a market cap of $3.90 trillion, a PE ratio of 29.24, a price-to-earnings-growth ratio of 1.66 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the firm posted $3.65 EPS. As a group, sell-side analysts predict that Microsoft Corporation will post 19.62 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 given a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's payout ratio is 20.27%.

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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