Microsoft Corporation $MSFT Stock Sold by Capital Advisors Inc. OK

Key Points

• Capital Advisors Inc. OK reduced its Microsoft stake by 0.9%, selling 4,412 shares and retaining 495,061 shares worth approximately $184.7 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, exceeding analyst expectations, while revenue rose 17.7% year over year.
• Microsoft raised its quarterly dividend from $0.91 to $0.98 per share, implying an annualized dividend of $3.92 and a 0.7% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $592.15.

Capital Advisors Inc. OK decreased its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 0.9% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 495,061 shares of the software giant's stock after selling 4,412 shares during the period. Microsoft accounts for about 2.7% of Capital Advisors Inc. OK's holdings, making the stock its 9th biggest position. Capital Advisors Inc. OK's holdings in Microsoft were worth $184,668,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Amundi grew its holdings in shares of Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant's stock worth $15,426,862,000 after purchasing an additional 9,814,598 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Microsoft by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Microsoft by 64.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant's stock valued at $8,982,083,000 after purchasing an additional 9,493,778 shares during the last quarter. California Public Employees Retirement System boosted its stake in Microsoft by 3.7% in the 1st quarter. California Public Employees Retirement System now owns 21,906,086 shares of the software giant's stock worth $8,108,976,000 after purchasing an additional 781,973 shares in the last quarter. Finally, Swiss National Bank increased its position in shares of Microsoft by 7.1% during the first quarter. Swiss National Bank now owns 20,721,690 shares of the software giant's stock valued at $7,670,548,000 after acquiring an additional 1,371,040 shares in the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft Stock Up 0.7%

MSFT stock opened at $524.51 on Friday. The firm has a market cap of $3.90 trillion, a PE ratio of 29.20, a PEG ratio of 1.67 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. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The firm's 50 day moving average price is $508.51 and its 200-day moving average price is $446.17.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business's quarterly revenue was up 17.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.65 earnings per share. On average, equities research analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

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

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Insider Activity

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction 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 represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Judson Althoff sold 10,000 shares of the business's 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 completion of the sale, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. 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 90 days. Company insiders own 0.03% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on MSFT. Wells Fargo & Company lifted their price objective on Microsoft from $700.00 to $725.00 and gave the stock an "overweight" rating in a report on Thursday, October 1st. Morgan Stanley downgraded Microsoft from an "overweight" rating to a "negative" rating in a research report on Monday, October 5th. UBS Group raised their price target on Microsoft from $525.00 to $675.00 and gave the company a "buy" rating in a research note on Thursday, October 15th. DA Davidson restated a "buy" rating and set a $550.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Finally, BNP Paribas Exane downgraded Microsoft from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Forty-three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $592.15.

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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