Microsoft Corporation $MSFT Stock Sold by Qsemble Capital Management LP

Key Points

• Qsemble Capital Management reduced its Microsoft stake by 69.5% in the second quarter, selling 23,662 shares and retaining 10,368 shares valued at approximately $3.87 million. Institutional investors still own 71.13% of Microsoft.
• Wall Street remains broadly bullish: 43 analysts rate Microsoft a Buy, with a consensus “Moderate Buy” rating and an average price target of $569.29. Analysts cite Azure growth, Copilot adoption and expanding AI infrastructure as key catalysts.
• Microsoft reported strong quarterly results, with revenue rising 17.7% year over year to $90.01 billion and EPS of $4.74, beating expectations. The company also increased its quarterly dividend to $0.98 per share, or $3.92 annualized.

Qsemble Capital Management LP cut its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 69.5% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 10,368 shares of the software giant's stock after selling 23,662 shares during the period. Qsemble Capital Management LP's holdings in Microsoft were worth $3,867,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in the business. Eagle Bay Advisors LLC raised its stake in shares of Microsoft by 5.3% during the 2nd quarter. Eagle Bay Advisors LLC now owns 8,894 shares of the software giant's stock valued at $3,317,000 after buying an additional 450 shares during the last quarter. University of Texas Texas AM Investment Management Co. boosted its stake in shares of Microsoft by 8.2% in the second quarter. University of Texas Texas AM Investment Management Co. now owns 67,743 shares of the software giant's stock worth $25,269,000 after buying an additional 5,115 shares during the last quarter. Old Peak Finance LLC grew its holdings in Microsoft by 16.7% during the second quarter. Old Peak Finance LLC now owns 4,583 shares of the software giant's stock worth $1,710,000 after acquiring an additional 656 shares during the period. Crew Capital Management Ltd grew its holdings in Microsoft by 4.7% during the second quarter. Crew Capital Management Ltd now owns 10,616 shares of the software giant's stock worth $3,960,000 after acquiring an additional 478 shares during the period. Finally, Willis Investment Counsel raised its position in Microsoft by 6.8% during the second quarter. Willis Investment Counsel now owns 121,147 shares of the software giant's stock valued at $45,190,000 after acquiring an additional 7,713 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Needham & Company LLC started coverage on Microsoft in a research report on Wednesday, September 23rd. They issued a "buy" rating on the stock. Barclays cut their target price on shares of Microsoft from $545.00 to $512.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. DA Davidson reissued a "buy" rating and set a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Rothschild & Co Redburn set a $440.00 price target on shares of Microsoft in a research report on Monday, September 21st. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-three analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $569.29.

Insider Transactions at Microsoft

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the firm'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 transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 143,009 shares of company stock valued at $71,420,699. Insiders own 0.03% of the company's stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Copilot remains the primary catalyst. Jefferies reiterated its bullish view, citing Microsoft’s redesigned Copilot, new usage-based revenue opportunities and potential for paid Copilot seats to double over the next year. Enterprise AI adoption, however, is expected to build gradually. Jefferies Doubles Down on Microsoft's Copilot Opportunity
• Positive Sentiment: Analysts see further upside. JPMorgan maintained a Buy rating with a $625 target, while RBC reportedly set a $640 target, supported by Azure growth, Copilot adoption and Microsoft’s expanding AI infrastructure. The stock is also on track for its strongest quarterly performance in decades, reflecting a market “flight to quality.” Microsoft Stock Surges Past $500
• Positive Sentiment: Azure and enterprise demand support the long-term case. Recent commentary points to Azure growth above 40%, rapidly increasing Copilot seats and a commercial backlog approaching $700 billion. Microsoft is also bringing OpenAI’s autonomous “Dots” AI workers into its enterprise security ecosystem, potentially expanding cloud and software consumption. Microsoft Brings OpenAI's Autonomous Dots AI Workers Into the Enterprise
• Neutral Sentiment: AI policy developments remain mixed. President Trump reaffirmed support for data centers and announced voluntary AI controls with Microsoft and other technology companies, potentially easing regulatory concerns while leaving uncertainty over whether voluntary safeguards will be sufficient. At A.I. Event, Trump Asks Meta, OpenAI and Microsoft to Make Safety Decisions Themselves
• Negative Sentiment: Privacy and competitive risks are weighing on sentiment. Reports that humans may review some Copilot prompts have raised data-privacy concerns. OpenAI is also launching workplace features that increasingly resemble Microsoft Office, intensifying the risk that a key partner could compete directly with Microsoft’s software franchise. OpenAI Takes on Microsoft With a ChatGPT Office Suite
• Negative Sentiment: Investors are questioning the cost and valuation of the AI buildout. Microsoft is reducing staff while committing heavily to data centers, and some analysts argue that cash-flow benefits may take longer to materialize. After its rally, elevated expectations leave less room for execution setbacks.

Microsoft Stock Down 0.1%

MSFT stock opened at $508.96 on Wednesday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm has a 50-day simple moving average of $482.29 and a 200-day simple moving average of $427.75. The stock has a market capitalization of $3.78 trillion, a P/E ratio of 28.34, a P/E/G ratio of 1.64 and a beta of 1.11.

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 for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the company posted $3.65 EPS. Microsoft's quarterly revenue was up 17.7% compared to the same quarter last year. Equities analysts forecast that Microsoft Corporation will post 19.62 earnings per share for the current fiscal 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 given a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is 20.27%.

Microsoft 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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