Microsoft Corporation $MSFT Stock: Worth Asset Management LLC Increases Stake

Key Points

• Worth Asset Management increased its Microsoft stake 28.9% in the third quarter, to 9,706 shares valued at about $4.98 million; institutional investors collectively own 71.13% of the stock.
• Microsoft beat quarterly earnings and revenue expectations, with revenue up 18.8% year over year, and raised its quarterly dividend from $0.91 to $0.98 per share.
• Microsoft is reportedly scaling back some rented AI-computing capacity and consolidating cloud partners, a move that may curb costs but has raised questions about AI demand and returns on data-center investment. The article notes Microsoft continues to generate positive free cash flow.

Worth Asset Management LLC increased its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 28.9% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 9,706 shares of the software giant's stock after buying an additional 2,174 shares during the quarter. Microsoft accounts for 1.5% of Worth Asset Management LLC's investment portfolio, making the stock its 15th largest holding. Worth Asset Management LLC's holdings in Microsoft were worth $4,978,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also bought and sold shares of MSFT. Crumly & Associates Inc. raised its holdings in shares of Microsoft by 11.2% in the third quarter. Crumly & Associates Inc. now owns 6,597 shares of the software giant's stock valued at $3,383,000 after purchasing an additional 664 shares during the last quarter. First Community Trust NA boosted its holdings in Microsoft by 4.3% during the third quarter. First Community Trust NA now owns 20,642 shares of the software giant's stock worth $10,587,000 after purchasing an additional 858 shares during the last quarter. Asempa Wealth Advisors boosted its holdings in Microsoft by 0.9% during the third quarter. Asempa Wealth Advisors now owns 3,550 shares of the software giant's stock worth $1,820,000 after purchasing an additional 33 shares during the last quarter. Great Waters Wealth Management grew its position in Microsoft by 2.6% in the 3rd quarter. Great Waters Wealth Management now owns 5,453 shares of the software giant's stock worth $2,797,000 after purchasing an additional 140 shares in the last quarter. Finally, Weaver Consulting Group grew its position in Microsoft by 1.5% in the 3rd quarter. Weaver Consulting Group now owns 16,217 shares of the software giant's stock worth $8,318,000 after purchasing an additional 238 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s free-cash-flow position may offer some reassurance: an analysis notes that several other major AI hyperscalers are generating negative free cash flow, while Microsoft is generating positive cash flow. Is Microsoft Getting Enough Credit for Better Free Cash Flow Compared to its Peers?
• Neutral Sentiment: Reports say Microsoft plans to reduce the number of neocloud partners it uses, wind down rented AI capacity from Oracle, and declined a Texas data-center expansion with Nscale. This could help control costs and give Microsoft tighter oversight as it builds its own infrastructure, but the implications for capacity growth remain uncertain. Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain
• Negative Sentiment: Investors may read the canceled or reduced AI-computing commitments as a sign that Microsoft is reassessing demand, project timing, or returns on its data-center spending. The shift comes as reports highlight construction delays and the rising cost of meeting a growing AI backlog, intensifying scrutiny of whether heavy investment will pay off. Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
• Negative Sentiment: Broader unease around AI spending and tech-market volatility may also weigh on MSFT, as investors question the scale of data-center investment relative to future cash returns. Microsoft and Oracle's AI ambitions are suddenly a lot more expensive

Microsoft Stock Performance

NASDAQ MSFT opened at $530.61 on Friday. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $559.15. The company has a 50-day simple moving average of $516.65 and a 200 day simple moving average of $440.18. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22. The company has a market capitalization of $3.94 trillion, a PE ratio of 27.69, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping the consensus estimate of $4.72 by $0.17. The business had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The company's revenue for the quarter was up 18.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.13 earnings per share. On average, research analysts predict that Microsoft Corporation will post 19.92 EPS for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 annualized dividend 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 19.00%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $600.00 price objective on shares of Microsoft in a research note on Monday, October 12th. Citizens Jmp boosted their target price on Microsoft from $550.00 to $625.00 and gave the stock a "market outperform" rating in a research note on Thursday, October 29th. TD Cowen upped their target price on Microsoft from $625.00 to $650.00 and gave the company a "buy" rating in a report on Thursday, October 29th. Griffin Securities downgraded Microsoft from a "buy" rating to a "neutral" rating in a research report on Thursday, October 29th. Finally, Bank of America increased their price target on Microsoft from $500.00 to $600.00 and gave the company a "buy" rating in a research report on Tuesday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus target price of $609.54.

Insider Activity at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the company's stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value of $3,984,293.10. Following the completion of the transaction, the executive vice president owned 555,396 shares in the company, valued at approximately $302,924,086.32. The trade was a 1.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 135,504 shares of company stock valued at $68,138,024. 0.03% of the stock is currently owned by company insiders.

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, and digital solutions for consumers, businesses, and public-sector organizations. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington.

Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.

Microsoft serves customers around the world through its products, online platforms, and network of business partners.

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