Microsoft Corporation $MSFT Stock: Washington Trust Bank Lowers Stake

Key Points

• Washington Trust Bank reduced its Microsoft stake by 4.3% in the second quarter, selling 6,481 shares and retaining 145,023 shares worth approximately $54.1 million. Microsoft remains the bank’s fifth-largest holding and represents 3.8% of its portfolio.
• Microsoft reported strong quarterly results, with revenue up 17.7% year over year to $90.01 billion and EPS of $4.74, beating expectations. The company also raised its quarterly dividend to $0.98 per share, while analysts maintain a consensus “Moderate Buy” rating and a $592.15 target price.
• Investors are focused on Azure growth and AI spending ahead of upcoming results, with strong cloud demand and custom chips supporting the outlook but heavy data-center investment potentially pressuring margins. CEO Satya Nadella and other insiders have sold shares, though the transactions were conducted under pre-arranged plans.

Washington Trust Bank trimmed its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 145,023 shares of the software giant's stock after selling 6,481 shares during the period. Microsoft comprises 3.8% of Washington Trust Bank's portfolio, making the stock its 5th largest position. Washington Trust Bank's holdings in Microsoft were worth $54,096,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of MSFT. Strategic Wealth Advisors LLC boosted its stake in shares of Microsoft by 1.7% during the 2nd quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant's stock valued at $549,000 after purchasing an additional 24 shares in the last quarter. Friedenthal Financial boosted its position in shares of Microsoft by 6.2% during the first quarter. Friedenthal Financial now owns 431 shares of the software giant's stock valued at $160,000 after purchasing an additional 25 shares in the last quarter. Sequent Planning LLC increased 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 acquiring an additional 25 shares in the last quarter. Lee Johnson Capital Management LLC boosted its stake in Microsoft by 3.8% during the second quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock worth $256,000 after acquiring an additional 25 shares in the last quarter. Finally, Riverpoint Wealth Management Holdings LLC increased its stake in shares of Microsoft by 0.5% during the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock valued at $2,052,000 after purchasing an additional 26 shares in the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft News Summary

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

Microsoft Trading Up 0.7%

Shares of Microsoft stock opened at $524.51 on Friday. 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 company has a fifty day moving average of $508.51 and a 200 day moving average of $446.17. The company has a market capitalization of $3.90 trillion, a P/E ratio of 29.20, a P/E/G ratio of 1.67 and a beta of 1.10. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion for the quarter, compared to analysts' expectations of $87.62 billion. During the same period in the previous year, the firm earned $3.65 EPS. The firm's revenue was up 17.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Microsoft Corporation will post 19.65 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 dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio is currently 20.27%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. The Goldman Sachs Group reissued a "buy" rating and issued a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Argus cut their target price on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Oppenheimer increased their price objective on Microsoft from $515.00 to $570.00 and gave the company an "outperform" rating in a research report on Tuesday, September 22nd. Benchmark reissued a "buy" rating on shares of Microsoft in a report on Friday, July 24th. Finally, Cantor Fitzgerald raised their price target on Microsoft from $522.00 to $608.00 and gave the stock an "overweight" rating in a research note on Monday, September 21st. Forty-three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $592.15.

Insider Buying and Selling at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of the firm's 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 completion of the sale, the chief executive officer directly owned 486,763 shares of the company's stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 completion of the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 150,314 shares of company stock worth $75,404,992 in the last ninety days. Company insiders own 0.03% of the company's stock.

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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