Microsoft Corporation $MSFT Stock Sold by Agate Pass Investment Management LLC

Key Points

• Agate Pass Investment Management cut its Microsoft stake by 4.5% in the second quarter, selling 1,210 shares and retaining 25,850 shares valued at approximately $9.64 million. Microsoft remains the firm’s seventh-largest holding and represents 3.6% of its portfolio.
• Microsoft reported strong quarterly results, with revenue of $92.28 billion and EPS of $4.89, while Azure revenue grew 48%. Analysts maintain a broadly positive view, with a “Moderate Buy” consensus rating and an average price target of $609.54.
• Investors are weighing Microsoft’s AI growth against rising costs and capital requirements, including about $170 billion in planned AI spending and a proposed $25 billion bond sale. Insider selling and concerns about narrowing cloud margins are additional areas of scrutiny.

Agate Pass Investment Management LLC decreased its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.5% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 25,850 shares of the software giant's stock after selling 1,210 shares during the period. Microsoft makes up 3.6% of Agate Pass Investment Management LLC's investment portfolio, making the stock its 7th largest holding. Agate Pass Investment Management LLC's holdings in Microsoft were worth $9,642,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently bought and sold shares of the stock. Sequent Planning LLC lifted its stake in shares of Microsoft by 0.7% in the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock worth $1,382,000 after purchasing an additional 25 shares during the period. Riverpoint Wealth Management Holdings LLC raised its position in Microsoft by 0.5% in the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after acquiring an additional 26 shares during the period. American Investment Services Inc. boosted its stake in shares of Microsoft by 3.1% during the 1st quarter. American Investment Services Inc. now owns 876 shares of the software giant's stock worth $324,000 after acquiring an additional 26 shares during the last quarter. Alpha Financial Partners LLC boosted its stake in shares of Microsoft by 0.9% during the 1st quarter. Alpha Financial Partners LLC now owns 3,182 shares of the software giant's stock worth $1,178,000 after acquiring an additional 28 shares during the last quarter. Finally, Mullaney Keating & Wright Inc. boosted its stake in shares of Microsoft by 1.2% during the 1st quarter. Mullaney Keating & Wright Inc. now owns 2,445 shares of the software giant's stock worth $905,000 after acquiring an additional 29 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

Key Microsoft News

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.

Insider Transactions at Microsoft

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction that occurred 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 directly owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 150,314 shares of company stock valued at $75,404,992 in the last ninety days. Corporate insiders own 0.03% of the company's stock.

Analyst Ratings Changes

MSFT has been the subject of several analyst reports. Phillip Securities lowered Microsoft from a "moderate buy" rating to a "hold" rating in a research note on Monday, October 12th. Argus lowered their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a research report on Friday, July 10th. Oppenheimer lifted their target price on Microsoft from $570.00 to $625.00 and gave the company an "outperform" rating in a research report on Monday, October 26th. Piper Sandler reissued an "overweight" rating and set a $650.00 price target (up from $610.00) on shares of Microsoft in a report on Thursday. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $640.00 price target on shares of Microsoft in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $609.54.

Microsoft Trading Down 1.6%

MSFT stock opened at $521.91 on Friday. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $551.15. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.22. The company has a market capitalization of $3.88 trillion, a price-to-earnings ratio of 27.24, a PEG ratio of 1.64 and a beta of 1.10. The business has a 50 day simple moving average of $512.91 and a two-hundred day simple moving average of $438.43.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The firm had revenue of $92.28 billion for the quarter, compared to analysts' expectations of $90.62 billion. During the same quarter last year, the business posted $4.13 earnings per share. The company's revenue for the quarter was up 18.8% compared to the same quarter last year. Research analysts anticipate that Microsoft Corporation will post 19.79 EPS for the current fiscal year.

Microsoft Increases Dividend

The company 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. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is presently 19.00%.

Microsoft 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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