Microsoft Corporation $MSFT Stock Sold by Blacksheep Fund Management Ltd

Key Points

• Blacksheep Fund Management cut its Microsoft position by 99.7% in the second quarter, selling 129,767 shares and retaining just 373 shares valued at approximately $139,000.
• Institutional investors own 71.13% of Microsoft, while insiders sold roughly $75.4 million of stock over the past 90 days. Microsoft’s latest quarter exceeded expectations, with revenue rising 17.7% year over year to $90.01 billion.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $594.11; upcoming catalysts include fiscal first-quarter results, Azure and Copilot growth, and AI-spending efficiency.

Blacksheep Fund Management Ltd reduced its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 99.7% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 373 shares of the software giant's stock after selling 129,767 shares during the period. Microsoft makes up about 6.0% of Blacksheep Fund Management Ltd's holdings, making the stock its 3rd biggest holding. Blacksheep Fund Management Ltd's holdings in Microsoft were worth $139,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Bank of America Corp DE bought a new position in shares of Microsoft during the second quarter worth about $27,338,370,000. Legal & General Group Plc bought a new position in Microsoft during the 2nd quarter worth approximately $18,306,443,000. Jupiter Topco LLC bought a new position in Microsoft during the 2nd quarter worth approximately $6,928,664,000. Canada Pension Plan Investment Board acquired a new position in shares of Microsoft in the 2nd quarter worth approximately $5,653,812,000. Finally, The Manufacturers Life Insurance Company acquired a new position in shares of Microsoft in the 2nd quarter worth approximately $4,000,706,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 Microsoft stock in a transaction that occurred on Tuesday, August 4th. The shares were 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 approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on MSFT. Piper Sandler reaffirmed an "overweight" rating on shares of Microsoft in a report on Tuesday, October 20th. CLSA reissued an "outperform" rating on shares of Microsoft in a report on Thursday, July 30th. Morgan Stanley downgraded shares of Microsoft from an "overweight" rating to a "negative" rating in a research report on Monday, October 5th. Melius Research set a $665.00 price target on shares of Microsoft and gave the stock a "buy" rating in a research report on Monday, October 5th. Finally, Needham & Company LLC initiated coverage on shares of Microsoft in a report on Wednesday, September 23rd. They issued a "buy" rating for the company. Forty-three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $594.11.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is offering voluntary buyouts to approximately 60,000 employees in the U.S., Canada, India and the U.K. The program is aimed at reducing costs and reallocating resources toward artificial intelligence, data centers and other strategic priorities. Investors appear to view the move as a way to help offset the company’s substantial AI infrastructure spending. Microsoft offers voluntary buyouts to 60,000 employees
• Positive Sentiment: Analysts raised their price targets ahead of earnings. Oppenheimer lifted its target to $625 from $570, while Truist raised its target to $600 from $575 and maintained a Buy rating, citing resilient Azure growth and strong enterprise demand. Oppenheimer raises Microsoft target ahead of earnings
• Positive Sentiment: Wall Street expects continued momentum in Azure and Copilot monetization. Microsoft reports fiscal first-quarter results on October 28, making cloud growth, AI demand and spending efficiency important near-term catalysts. Microsoft stock gains as Wall Street sees Azure growth

Microsoft Stock Performance

Shares of MSFT opened at $532.60 on Tuesday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The company has a market cap of $3.96 trillion, a price-to-earnings ratio of 29.65, 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 quick ratio of 1.22 and a current ratio of 1.23. The firm has a fifty day moving average of $508.43 and a 200-day moving average of $437.18.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the firm earned $3.65 earnings per share. The company's quarterly revenue was up 17.7% on a year-over-year basis. As a group, equities analysts anticipate that Microsoft Corporation will post 19.66 earnings per share for the current year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is presently 20.27%.

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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