RVW Wealth LLC Buys 4,006 Shares of Microsoft Corporation $MSFT

Key Points

• RVW Wealth nearly doubled its Microsoft stake in the third quarter, adding 4,006 shares to hold 8,079 shares valued at about $4.14 million. Institutional investors collectively own 71.13% of Microsoft stock.
• Microsoft beat quarterly estimates, reporting earnings of $4.89 per share and revenue of $92.28 billion, up 18.8% year over year. It also raised its quarterly dividend from $0.91 to $0.98 per share.
• Reports say Microsoft is scaling back some external AI-computing commitments as it consolidates cloud partners. The move may help manage costs, but has raised questions about AI demand, infrastructure growth, and returns on data-center spending.

RVW Wealth LLC grew its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 98.4% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 8,079 shares of the software giant's stock after buying an additional 4,006 shares during the period. RVW Wealth LLC's holdings in Microsoft were worth $4,144,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. State Street Corp raised its stake in Microsoft by 2.9% in the 2nd quarter. State Street Corp now owns 315,653,206 shares of the software giant's stock worth $117,744,959,000 after acquiring an additional 8,944,917 shares during the last quarter. Bank of America Corp DE acquired a new stake in Microsoft during the 2nd quarter worth about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Microsoft by 0.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock valued at $24,013,297,000 after purchasing an additional 543,172 shares during the last quarter. Legal & General Group Plc purchased a new stake in Microsoft during the 2nd quarter valued at about $18,306,443,000. Finally, Amundi grew its stake in Microsoft by 12.0% during the 2nd quarter. Amundi now owns 46,694,778 shares of the software giant's stock valued at $17,418,076,000 after purchasing an additional 5,019,702 shares during the last quarter. Hedge funds and other 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: 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

Insider Activity at Microsoft

In related news, EVP Amy Hood sold 41,674 shares of Microsoft stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the business's 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 completion of the transaction, the chief executive officer directly owned 486,763 shares of the company's stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. 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. Over the last quarter, insiders have sold 135,504 shares of company stock valued at $68,138,024. 0.03% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Evercore raised Microsoft from an "underperform" rating to an "outperform" rating in a report on Monday, October 5th. Sanford C. Bernstein lifted their target price on Microsoft from $662.00 to $722.00 and gave the stock an "outperform" rating in a report on Thursday, October 29th. Scotiabank upped their target price on Microsoft from $625.00 to $650.00 and gave the company a "sector outperform" rating in a research report on Thursday, October 29th. Mizuho increased their price target on shares of Microsoft from $510.00 to $600.00 and gave the stock an "outperform" rating in a report on Thursday, October 15th. Finally, Tigress Financial increased their price target on shares of Microsoft from $680.00 to $690.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $609.54.

Microsoft Price Performance

Shares of MSFT opened at $530.61 on Friday. The business's 50-day moving average is $516.65 and its two-hundred day moving average is $440.18. The company has a market capitalization of $3.94 trillion, a P/E ratio of 27.69, a P/E/G ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $559.15. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.17. The business had revenue of $92.28 billion during the quarter, compared to analysts' expectations of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. 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 EPS. Research analysts predict that Microsoft Corporation will post 19.92 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft's dividend payout ratio is 19.00%.

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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