Riverbridge Partners LLC Lowers Holdings in Microsoft Corporation $MSFT

Key Points

• Riverbridge Partners reduced its Microsoft stake by 10.1% in the second quarter, selling 46,282 shares and retaining 413,524 shares worth approximately $154.3 million. Microsoft remains the firm’s second-largest portfolio holding, representing 4.3% of its assets.
• Microsoft reported quarterly EPS of $4.74 and revenue of $90.01 billion, exceeding analyst expectations, while revenue increased 17.7% year over year. The company also declared a quarterly dividend of $0.91 per share, representing a 0.7% yield.
• Analyst sentiment remains positive, with 42 Buy ratings and five Holds producing a consensus “Moderate Buy” rating and an average price target of $560.27; however, executives sold shares and investors remain focused on data-center costs and service-reliability issues.

Riverbridge Partners LLC reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 10.1% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 413,524 shares of the software giant's stock after selling 46,282 shares during the quarter. Microsoft accounts for 4.3% of Riverbridge Partners LLC's portfolio, making the stock its 2nd largest position. Riverbridge Partners LLC's holdings in Microsoft were worth $154,253,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC boosted its position 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 buying an additional 20 shares in the last quarter. Bernzott Capital Advisors acquired a new stake in shares of Microsoft during the fourth quarter worth approximately $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft during the fourth quarter worth approximately $36,000. Fairway Wealth LLC raised its stake in shares of Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after acquiring an additional 66 shares during the last quarter. Finally, Frankly Finances LLC bought a new position in shares of Microsoft in the second quarter valued at approximately $35,000. 71.13% of the stock is owned by institutional investors.

Insider Activity

In related news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated 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 directly owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 21,810 shares of company stock worth $10,110,874. 0.03% of the stock is owned by company insiders.

Analyst Ratings Changes

MSFT has been the topic of a number of research analyst reports. Weiss Ratings upgraded Microsoft from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday. Wedbush reiterated an "outperform" rating and issued a $575.00 price objective on shares of Microsoft in a research report on Wednesday, May 13th. Benchmark reissued a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Truist Financial restated a "buy" rating and set a $575.00 target price on shares of Microsoft in a report on Wednesday, July 22nd. Finally, Oppenheimer restated an "outperform" rating and issued a $515.00 target price on shares of Microsoft in a research note on Wednesday, July 22nd. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Microsoft has a consensus rating of "Moderate Buy" and an average price target of $560.27.

Microsoft Stock Performance

MSFT stock opened at $507.29 on Tuesday. The company has a 50 day moving average price of $433.67 and a 200 day moving average price of $413.10. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. 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 $3.77 trillion, a PE ratio of 28.25, a price-to-earnings-growth ratio of 1.65 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts' consensus estimates 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 return on equity of 31.98% and a net margin of 40.31%.The business's quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the company earned $3.65 EPS. Analysts forecast that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and Saudi Arabia’s HUMAIN expanded their strategic partnership, introducing enterprise AI offerings and an AI-enabled PC. The agreement supports Microsoft’s effort to expand Azure and Copilot-related AI adoption internationally. Microsoft and HUMAIN Expand Strategic Collaboration at LEAP 2026 with New Enterprise AI Offering and AI PC
• Positive Sentiment: Goldman Sachs expects elevated AI capital spending to continue into 2027. Sustained demand for cloud computing, data-center capacity and AI infrastructure could benefit Microsoft’s Azure business, although it also implies significant ongoing investment. Here comes the AI capex shocker, Goldman Sachs says
• Positive Sentiment: Analyst commentary remains constructive, with Citizens analyst Patrick Walravens anticipating that Microsoft could retest its record high over the next 12 months. Erste Group also raised its fiscal 2027 EPS estimate, reinforcing the bullish view on earnings growth. Wall Street analyst sets Microsoft stock price target for next 12 months
• Neutral Sentiment: Microsoft is expected to announce its annual dividend increase in September. Its last six increases were between 9% and 11%, but the size of the upcoming raise remains uncertain; the news offers income support rather than an immediate earnings catalyst. Microsoft Has Raised Its Dividend Every Year for More Than a Decade
• Negative Sentiment: Microsoft Outlook experienced an outage that disrupted email access, while OpenAI’s ChatGPT Work reported elevated errors and latency. Although likely temporary, the incidents raise concerns about service reliability across productivity and AI products. Microsoft Outlook and OpenAI's ChatGPT Work are experiencing user outages
• Negative Sentiment: Investors are also focused on the power, water and electricity demands associated with Microsoft’s expanding data-center footprint. Infrastructure bottlenecks and rising AI-related capital requirements could pressure margins and increase execution risk. Microsoft Stock Slips as Its Magic Word for Data Centers Emerges
• Negative Sentiment: Microsoft acknowledged that a Windows 11 update can cause broken mouse cursors and black desktop wallpapers. The issue is unlikely to materially affect financial results, but it adds to near-term product-reliability concerns. Microsoft Admits Windows 11 Update Breaks Mouse Cursors

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).

Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source