Microsoft (NASDAQ:MSFT) EVP Amy Hood Sells 7,305 Shares of Stock

Key Points

• Microsoft EVP Amy Hood sold 7,305 shares at an average price of $545.42, generating approximately $3.98 million. The transaction, conducted under a pre-arranged Rule 10b5-1 plan, reduced her stake by 1.3% to 555,396 shares.
• Microsoft’s shares recently traded at $533.69, near their 52-week high, while analysts maintained a “Moderate Buy” consensus with an average price target of $581.24.
• The company reported strong quarterly results, including $4.74 in adjusted EPS and $90.01 billion in revenue, and raised its quarterly dividend to $0.98. Investors remain focused on Azure and AI growth, alongside concerns about heavy infrastructure spending pressuring cash flow and margins.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) EVP Amy Hood sold 7,305 shares of the stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total value of $3,984,293.10. Following the transaction, the executive vice president owned 555,396 shares in the company, valued at approximately $302,924,086.32. This trade represents a 1.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Amy Hood also recently made the following trade(s):

• On Monday, September 14th, Amy Hood sold 41,674 shares of Microsoft stock. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98.

Microsoft Stock Performance

MSFT traded down $9.76 during trading on Wednesday, hitting $533.69. The stock had a trading volume of 22,189,457 shares, compared to its average volume of 34,153,160. The company has a 50 day moving average price of $503.23 and a 200-day moving average price of $437.50. The firm has a market cap of $3.96 trillion, a price-to-earnings ratio of 29.72, a P/E/G ratio of 1.74 and a beta of 1.10. Microsoft Corporation has a one year low of $349.20 and a one year 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.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued 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. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the firm posted $3.65 EPS. The company's revenue for the quarter was up 17.7% on a year-over-year basis. As a group, research analysts predict that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a boost from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio is currently 20.27%.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. BMO Capital Markets assumed coverage on shares of Microsoft in a research note on Monday, October 5th. They issued an "outperform" rating for the company. Melius Research set a $665.00 target price on shares of Microsoft and gave the stock a "buy" rating in a research report on Monday, October 5th. Truist Financial reaffirmed a "buy" rating and set a $575.00 target price on shares of Microsoft in a report on Wednesday, July 22nd. BNP Paribas Exane cut shares of Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Finally, Rothschild & Co Redburn set a $440.00 price target on shares of Microsoft in a research report on Monday, September 21st. Forty-one research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $581.24.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft unveiled its Maia 300 custom AI chip, which it says can deliver approximately 40% more tokens per megawatt than comparable GPU-based systems. The chip is planned for multi-gigawatt deployment across Azure data centers and could reduce the company’s reliance on Nvidia and AMD, potentially lowering long-term AI infrastructure costs. What Could Microsoft Gain From Its Maia 300 AI Chip Rollout?
• Positive Sentiment: Analysts remain focused on Azure’s growth ahead of Microsoft’s fiscal first-quarter results on October 28. Barclays raised its price target to $600 from $512 and expects the quarter to show stronger differentiation in Microsoft’s software business. Microsoft Price Target Raised by Barclays
• Positive Sentiment: Reports of more than $130 billion in new data-center leases highlight robust demand for Azure and AI infrastructure, although the commitments also underscore the scale of Microsoft’s capital requirements. Microsoft Reports $130 Billion in Data Center Leases
• Neutral Sentiment: Microsoft is scheduled to report earnings later this month, with consensus estimates calling for approximately $4.72 in earnings per share and $90.4 billion in revenue. Azure growth and management’s outlook for AI spending are likely to be the main catalysts.
• Negative Sentiment: Investors are concerned that Microsoft’s aggressive AI buildout is pressuring free cash flow and margins. Reports that Azure management is seeking at least 20% in cost reductions reflect efforts to offset soaring data-center expenses and raise questions about the near-term payoff from the investment cycle. Microsoft Weighs Cost Cuts in Azure
• Negative Sentiment: A Phillip Securities downgrade from “moderate buy” to “hold,” along with concerns about elevated valuation near record highs, added pressure. Hot inflation and higher interest rates are also weighing on AI-related stocks, particularly companies with heavy infrastructure spending.
• Negative Sentiment: Microsoft also issued patches addressing more than 1,400 security flaws, reinforcing continuing cybersecurity concerns, while the departure of Microsoft Research leader Peter Lee adds a limited leadership-overhang risk.

Hedge Funds Weigh In On Microsoft

Hedge funds have recently bought and sold shares of the company. Columbus Macro LLC raised its position in shares of Microsoft by 0.5% in the 3rd quarter. Columbus Macro LLC now owns 17,337 shares of the software giant's stock valued at $8,892,000 after buying an additional 92 shares in the last quarter. Financial Planning Navigators CORP lifted its holdings in shares of Microsoft by 83.5% during the 3rd quarter. Financial Planning Navigators CORP now owns 3,066 shares of the software giant's stock worth $1,573,000 after acquiring an additional 1,395 shares during the period. Tenon Financial LLC lifted its holdings in shares of Microsoft by 4.0% during the 3rd quarter. Tenon Financial LLC now owns 4,024 shares of the software giant's stock worth $2,064,000 after acquiring an additional 155 shares during the period. Virginia Wealth Management Group Inc. boosted its position in shares of Microsoft by 0.3% during the 3rd quarter. Virginia Wealth Management Group Inc. now owns 12,830 shares of the software giant's stock worth $6,581,000 after acquiring an additional 33 shares in the last quarter. Finally, Tempus Wealth Planning LLC boosted its position in shares of Microsoft by 3.2% during the 3rd quarter. Tempus Wealth Planning LLC now owns 22,232 shares of the software giant's stock worth $11,403,000 after acquiring an additional 680 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

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.

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.