Panoramic Capital Partners LLC Reduces Position in Microsoft Corporation $MSFT

Key Points

• Panoramic Capital Partners cut its Microsoft position by 40.8% in the second quarter, selling 7,004 shares and retaining 10,149 shares worth approximately $3.8 million. Institutional investors and hedge funds collectively own 71.13% of MSFT.
• Microsoft reported stronger-than-expected quarterly results, with EPS of $4.74 and revenue of $90.01 billion, while revenue grew 17.7% year over year. The company also raised its quarterly dividend to $0.98 per share, producing a 0.7% yield.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $578.73, although Morgan Stanley downgraded the stock and insiders have sold more than $71 million of shares over the past 90 days.

Panoramic Capital Partners LLC reduced its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 40.8% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 10,149 shares of the software giant's stock after selling 7,004 shares during the quarter. Microsoft makes up about 1.8% of Panoramic Capital Partners LLC's portfolio, making the stock its 7th biggest holding. Panoramic Capital Partners LLC's holdings in Microsoft were worth $3,786,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in MSFT. Frankly Finances LLC acquired a new position in shares of Microsoft in the second quarter valued at $35,000. MidAtlantic Capital Management Inc. bought a new position in shares of Microsoft in the fourth quarter valued at about $59,000. Fiduciary Advisors Inc. lifted its stake in shares of Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after buying an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new stake in shares of Microsoft during the 2nd quarter worth about $60,000. Finally, Lifetime Wealth Management P.C. bought a new stake in shares of Microsoft during the 4th quarter worth about $101,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Trading Up 0.1%

MSFT opened at $529.76 on Thursday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a 50-day simple moving average of $498.31 and a 200 day simple moving average of $433.03. 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 stock has a market capitalization of $3.93 trillion, a price-to-earnings ratio of 29.50, a P/E/G ratio of 1.70 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the firm earned $3.65 EPS. Analysts predict that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors 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 annualized dividend and a dividend yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. Microsoft's dividend payout ratio (DPR) is 20.27%.

Insider Activity

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 sale, the chief executive officer owned 100,447 shares of the company's stock, 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 can be accessed through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction 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 transaction, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.

Analyst Ratings Changes

Several research analysts have weighed in on MSFT shares. Benchmark reissued a "buy" rating on shares of Microsoft in a report on Friday, July 24th. Jefferies Financial Group assumed coverage on Microsoft in a report on Monday. They set a "buy" rating for the company. Citigroup upgraded Microsoft from a "market outperform" rating to a "buy" rating in a research note on Monday. Cantor Fitzgerald lifted their price target on Microsoft from $522.00 to $608.00 and gave the stock an "overweight" rating in a report on Monday, September 21st. Finally, Morgan Stanley downgraded Microsoft from an "overweight" rating to a "negative" rating in a research note on Monday. Forty-one equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and an average target price of $578.73.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

About Microsoft

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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