Vulcan Value Partners LLC Sells 122,086 Shares of Microsoft Corporation $MSFT

Key Points

• Vulcan Value Partners reduced its Microsoft position by 11%, selling 122,086 shares and retaining 986,905 shares worth approximately $368.1 million. Microsoft remains the firm’s second-largest holding, representing about 11.2% of its portfolio.
• Microsoft reported strong quarterly results, with revenue up 18.8% year over year to $92.28 billion and EPS of $4.89, exceeding analyst expectations. The company also raised its quarterly dividend to $0.98 per share, or $3.92 annually.
• Investor sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $609.54 versus a reported share price of $507.12. However, concerns persist over heavy AI infrastructure spending, declining free cash flow, and increased financing needs.

Vulcan Value Partners LLC trimmed its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 11.0% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 986,905 shares of the software giant's stock after selling 122,086 shares during the period. Microsoft accounts for approximately 11.2% of Vulcan Value Partners LLC's holdings, making the stock its 2nd largest holding. Vulcan Value Partners LLC's holdings in Microsoft were worth $368,135,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of MSFT. Bank of America Corp DE bought a new position in shares of Microsoft in the second quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position 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 worth $24,013,297,000 after buying an additional 543,172 shares in the last quarter. Legal & General Group Plc bought a new stake in Microsoft during the 2nd quarter worth about $18,306,443,000. Amundi grew its holdings in Microsoft by 12.0% during the 2nd quarter. Amundi now owns 46,694,778 shares of the software giant's stock worth $17,418,076,000 after acquiring an additional 5,019,702 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant's stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares during the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $507.12 on Tuesday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $551.15. The stock has a market capitalization of $3.77 trillion, a P/E ratio of 26.47, a P/E/G ratio of 1.67 and a beta of 1.10. The business has a 50-day moving average price of $513.39 and a two-hundred day moving average price of $438.62.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results 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. Microsoft had a net margin of 41.17% and a return on equity of 32.31%. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. During the same quarter last year, the firm earned $4.13 EPS. The company's revenue for the quarter was up 18.8% on a year-over-year basis. Equities analysts predict that Microsoft Corporation will post 19.79 earnings per share for the current year.

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. This is an increase from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is currently 20.46%.

Insider Activity at Microsoft

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 145,504 shares of company stock worth $73,016,924 over the last ninety days. Company 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: Azure and AI demand remain the key bullish catalysts. Recent coverage highlights Azure revenue growth of 48%, above Microsoft’s 44%–45% forecast, with demand reportedly exceeding available capacity. Strong cloud growth, expanding Copilot adoption, and a reported $677 billion contract backlog support the view that Microsoft can monetize its AI investments. Microsoft Delivers Strong Azure Growth as AI Demand Exceeds Supply
• Positive Sentiment: Analysts and long-term investors continue to favor Microsoft’s scale and financial quality. Commentary points to Microsoft’s high-margin Azure platform, OpenAI partnership, prudent infrastructure expansion, and durable competitive position. Bill Ackman and other investors continue to view MSFT as a long-term compounder, while Microsoft’s latest quarterly results exceeded expectations with revenue up 18.8% year over year to $92.28 billion and EPS of $4.89. Microsoft’s Prudent Approach to the AI Infrastructure Buildout
• Neutral Sentiment: Microsoft is expanding enterprise AI relationships. Estée Lauder selected Microsoft’s cloud, data, and AI tools to unify data and support personalized customer experiences. The deal reinforces Azure’s enterprise relevance, although its financial contribution to Microsoft was not disclosed. Estée Lauder Partners With Microsoft on AI and Data Tools
• Negative Sentiment: AI financing and cash-flow concerns are weighing on mega-cap technology stocks. Microsoft’s roughly $25 billion bond offering and heavy data-center spending have prompted debate about leverage and returns on AI infrastructure. Recent coverage notes that free cash flow fell to about $18.6 billion as capital expenditures increased, making investors more sensitive to execution and funding risks. AI Bond Funding Might Change the Case for Investing in Microsoft
• Negative Sentiment: Market-wide technology weakness amplified the pressure. The Nasdaq declined as investors reassessed expensive AI-linked stocks, while Oracle’s $10 billion debt sale revived concerns that aggressive AI buildouts may require substantial borrowing. Microsoft’s strong balance sheet and low debt-to-equity ratio distinguish it from weaker peers, but the sector-wide risk-off move still affected MSFT. Oracle Declines as AI Debt Worries Return

Analysts Set New Price Targets

A number of brokerages have weighed in on MSFT. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Microsoft in a research note on Monday, September 28th. Jefferies Financial Group upped their target price on shares of Microsoft from $575.00 to $650.00 and gave the stock a "buy" rating in a research report on Wednesday, October 14th. BNP Paribas Exane cut shares of Microsoft from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. BMO Capital Markets set a $610.00 price target on shares of Microsoft in a report on Thursday. Finally, CLSA restated an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $609.54.

Microsoft Company Profile

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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