Microsoft Corporation $MSFT Stock Sold by DMC Group LLC

Key Points

• DMC Group LLC reduced its Microsoft position by 12.2% in the second quarter, selling 1,200 shares and retaining 8,664 shares valued at approximately $3.23 million. Microsoft remains 2.2% of the firm’s portfolio and its 10th-largest holding.
• Microsoft reported stronger-than-expected quarterly results, with revenue of $92.28 billion and EPS of $4.89, while Azure revenue grew 48%. Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $609.54.
• Investors continue to weigh Microsoft’s AI growth against rising costs and capital intensity, including roughly $170 billion in planned AI spending and a proposed $25 billion bond sale. The company also increased its quarterly dividend to $0.98 per share.

DMC Group LLC decreased its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 12.2% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 8,664 shares of the software giant's stock after selling 1,200 shares during the period. Microsoft accounts for approximately 2.2% of DMC Group LLC's portfolio, making the stock its 10th biggest holding. DMC Group LLC's holdings in Microsoft were worth $3,232,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. Bank of America Corp DE bought a new position in shares of Microsoft during the 2nd quarter worth about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Microsoft by 0.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after purchasing an additional 543,172 shares in the last quarter. Legal & General Group Plc bought a new stake in Microsoft in the second quarter worth $18,306,443,000. Amundi grew its holdings in Microsoft by 30.8% in 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 during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock valued at $10,852,884,000 after acquiring an additional 2,784,809 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft News Roundup

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.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on MSFT. Yorkville Ives initiated coverage on Microsoft in a report on Monday, October 5th. They issued an "outperform" rating and a $615.00 price target for the company. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $600.00 price target on shares of Microsoft in a research report on Monday, October 12th. Benchmark reiterated a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Wells Fargo & Company upped their target price on shares of Microsoft from $725.00 to $750.00 and gave the stock an "overweight" rating in a research report on Thursday. Finally, Rothschild & Co Redburn set a $440.00 price target on shares of Microsoft in a research report on Monday, September 21st. One equities 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. According to data from MarketBeat.com, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $609.54.

Insider Activity at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction dated 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 completion of the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Amy Hood sold 7,305 shares of Microsoft stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the transaction, the executive vice president owned 555,396 shares in the company, valued at approximately $302,924,086.32. This trade represents a 1.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 150,314 shares of company stock worth $75,404,992 in the last quarter. Insiders own 0.03% of the company's stock.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $521.91 on Monday. The company has a market capitalization of $3.88 trillion, a price-to-earnings ratio of 27.24, a PEG ratio of 1.61 and a beta of 1.05. The company has a current ratio of 1.22, a quick ratio of 1.21 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $551.15. The firm's 50-day moving average is $512.91 and its 200 day moving average is $438.43.

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

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This is a boost 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%. Microsoft's dividend payout ratio is presently 19.00%.

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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