Odyssean LLC Cuts Stock Holdings in Microsoft Corporation $MSFT

Key Points

• Odyssean LLC cut its Microsoft stake by 48.9% in the second quarter, selling 1,783 shares and retaining 1,863 shares valued at approximately $695,000.
• Analyst sentiment remains positive, with 42 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $560.27.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, beating estimates, while its AI growth outlook is supported by a large backlog but tempered by concerns over data-center costs, cash conversion and limited AI disclosure.

Odyssean LLC lowered its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 48.9% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,863 shares of the software giant's stock after selling 1,783 shares during the quarter. Odyssean LLC's holdings in Microsoft were worth $695,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors acquired a new position in Microsoft during the 4th quarter valued at about $34,000. Frankly Finances LLC purchased a new stake in Microsoft in the second quarter valued at about $35,000. Timmons Wealth Management LLC acquired a new stake in Microsoft in the fourth quarter worth about $36,000. Finally, Bard Associates Inc. purchased a new stake in shares of Microsoft during the second quarter worth about $37,000. 71.13% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of analysts recently commented on MSFT shares. Royal Bank Of Canada reiterated an "outperform" rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. DA Davidson reissued a "buy" rating and set a $550.00 price objective on shares of Microsoft in a report on Thursday, July 30th. BMO Capital Markets raised their target price on Microsoft from $500.00 to $515.00 and gave the stock an "outperform" rating in a research note on Thursday, July 30th. Citigroup reaffirmed a "buy" rating and set a $600.00 price target (up from $570.00) on shares of Microsoft in a research report on Tuesday, July 28th. Finally, Stifel Nicolaus boosted their price target on Microsoft from $400.00 to $450.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $560.27.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft agreed to a long-term partnership with Saudi Arabia’s HUMAIN to bring its ALLAM Arabic-language AI models to Microsoft Foundry and Microsoft 365 Copilot. The deal expands Azure’s enterprise AI reach in the Middle East and adds regional-language capabilities to Microsoft’s ecosystem. Microsoft Expands Middle East AI Footprint Through Long-Term HUMAIN Deal
• Positive Sentiment: China’s Moonshot AI is reportedly discussing revenue-sharing arrangements with Microsoft, Amazon and Alphabet that could allow the cloud providers to host its Kimi K3 model. If completed, the arrangement could generate additional Azure consumption and provide access to a large pool of enterprise AI customers. China's Moonshot in talks with Microsoft, Amazon, Google over K3 revenue sharing
• Positive Sentiment: Microsoft’s roughly $678 billion commercial backlog and growing reliance on Azure for AI workloads—including demand from major customers such as Meta—continue to reinforce the long-term revenue outlook. Pershing Square’s decision to make Microsoft its largest AI holding also provides a favorable institutional signal. Microsoft Rises as $678 Billion Backlog Defies Tech Selloff
• Neutral Sentiment: Microsoft is developing its own Maia 300 AI chip, potentially reducing dependence on third-party GPUs and improving inference economics over time. However, custom silicon requires significant upfront investment, and the financial benefits remain unproven. OpenAI’s Jalapeño Chip Could Change the AI Hardware Race
• Negative Sentiment: Investors remain concerned that Microsoft’s AI capacity is converting into cash more slowly than expected. Fulfilling the backlog requires a historically large data-center buildout, while rising memory and server costs are increasing pressure on capital spending and near-term margins. Microsoft's AI Capacity Is Selling - But Cash Conversion Is Lagging
• Negative Sentiment: Critics say Microsoft provides insufficient disclosure on AI revenue, costs and capital allocation, making it difficult to assess returns on its AI investments. A slightly hotter-than-expected core PCE reading also creates a broader valuation headwind for richly valued technology shares. Microsoft Is Leaving Investors Flying Blind on Its AI Businesses

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $496.37 on Thursday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The stock has a market capitalization of $3.69 trillion, a price-to-earnings ratio of 27.64, a PEG ratio of 1.58 and a beta of 1.11. The firm's 50 day simple moving average is $425.67 and its 200-day simple moving average is $411.00. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during 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 revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the business posted $3.65 EPS. Analysts expect that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's dividend payout ratio (DPR) is 20.27%.

Insider Transactions at Microsoft

In related news, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the transaction, the chief executive officer owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 37,310 shares of company stock valued at $17,256,219 in the last ninety days. 0.03% of the stock is currently owned by insiders.

Microsoft Company Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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