Strong Retirement Solutions LLC Sells 4,554 Shares of Microsoft Corporation $MSFT

Key Points

• Strong Retirement Solutions cut its Microsoft stake by 22.8%, selling 4,554 shares in Q3; it retained 15,405 shares valued at about $7.9 million.
• Microsoft beat quarterly earnings and revenue estimates, reporting EPS of $4.89 and revenue of $92.28 billion; revenue rose 18.8% year over year.
• Microsoft raised its quarterly dividend from $0.91 to $0.98 per share. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $609.54.

Strong Retirement Solutions LLC lowered its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 22.8% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 15,405 shares of the software giant's stock after selling 4,554 shares during the period. Microsoft makes up approximately 4.4% of Strong Retirement Solutions LLC's holdings, making the stock its 5th biggest position. Strong Retirement Solutions LLC's holdings in Microsoft were worth $7,901,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in MSFT. Box Hill Private Wealth LLC boosted its position in Microsoft by 0.5% during the second quarter. Box Hill Private Wealth LLC now owns 4,272 shares of the software giant's stock worth $1,593,000 after purchasing an additional 21 shares during the period. Strategic Wealth Advisors LLC raised its position in shares of Microsoft by 1.7% in the second quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant's stock valued at $549,000 after purchasing an additional 24 shares during the period. Lee Johnson Capital Management LLC raised its position in shares of Microsoft by 3.8% in the second quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock valued at $256,000 after purchasing an additional 25 shares during the period. Mann Financial Group Inc. raised its position in shares of Microsoft by 1.3% in the second quarter. Mann Financial Group Inc. now owns 1,921 shares of the software giant's stock valued at $717,000 after purchasing an additional 25 shares during the period. Finally, Riverpoint Wealth Management Holdings LLC lifted its stake in shares of Microsoft by 0.5% in the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after buying an additional 26 shares during the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft Trading Down 1.0%

Microsoft stock opened at $530.61 on Friday. The business has a 50 day moving average price of $516.65 and a two-hundred day moving average price of $440.18. The company has a quick ratio of 1.21, a current ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a price-to-earnings-growth ratio of 1.56 and a beta of 1.05. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $559.15.

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 analysts' consensus estimates of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. During the same quarter last year, the company earned $4.13 EPS. The company's quarterly revenue was up 18.8% on a year-over-year basis. As a group, equities analysts forecast that Microsoft Corporation will post 19.92 EPS for the current year.

Microsoft Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is an increase from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft's dividend payout ratio (DPR) is presently 19.00%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Wells Fargo & Company upped their price objective on shares of Microsoft from $725.00 to $750.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Guggenheim lifted their target price on shares of Microsoft from $586.00 to $595.00 and gave the stock a "buy" rating in a report on Thursday, October 29th. Barclays lifted their target price on shares of Microsoft from $600.00 to $610.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Wolfe Research raised shares of Microsoft from a "hold" rating to a "strong-buy" rating in a research report on Thursday, October 29th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $609.54.

Insider Activity at Microsoft

In other news, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction dated 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. This represents a 15.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the firm's stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the sale, the executive vice president directly owned 555,396 shares of the company's stock, 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. Over the last quarter, insiders sold 135,504 shares of company stock worth $68,138,024. Corporate insiders own 0.03% of the company's stock.

Trending Headlines about Microsoft

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 Company Profile

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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