Private Capital Advisors Inc. cut its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4.0% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 61,547 shares of the software giant’s stock after selling 2,535 shares during the quarter. Microsoft accounts for 2.7% of Private Capital Advisors Inc.’s portfolio, making the stock its 7th largest position. Private Capital Advisors Inc.’s holdings in Microsoft were worth $31,567,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds and other institutional investors also recently made changes to their positions in MSFT. Bank of America Corp DE acquired a new position in Microsoft in the 2nd quarter worth approximately $27,338,370,000. Legal & General Group Plc purchased a new position in Microsoft during the 2nd quarter worth approximately $18,306,443,000. Jupiter Topco LLC acquired a new stake in Microsoft during the 2nd quarter valued at $6,928,664,000. Canada Pension Plan Investment Board acquired a new stake in Microsoft during the 2nd quarter valued at $5,653,812,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in Microsoft during the 2nd quarter valued at $4,000,706,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets
MSFT has been the subject of a number of research analyst reports. UBS Group set a $700.00 target price on Microsoft in a research report on Thursday, October 29th. Morgan Stanley reiterated an “overweight” rating on shares of Microsoft in a report on Thursday, October 29th. Guggenheim upped their price target on Microsoft from $586.00 to $595.00 and gave the company a “buy” rating in a research report on Thursday, October 29th. Raymond James Financial set a $650.00 price objective on Microsoft in a research note on Thursday, October 29th. Finally, Weiss Ratings raised Microsoft from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus target price of $609.54.
Get Our Latest Analysis on Microsoft
Microsoft Stock Down 1.0%
Microsoft stock opened at $530.61 on Friday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month 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. The firm has a market cap of $3.94 trillion, a PE ratio of 27.69, a P/E/G ratio of 1.56 and a beta of 1.05. The firm’s 50 day moving average price is $516.65 and its two-hundred day moving average price is $440.18.
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 analysts’ consensus estimates of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The company had revenue of $92.28 billion during the quarter, compared to analyst estimates of $90.62 billion. During the same quarter last year, the business posted $4.13 EPS. The company’s revenue for the quarter was up 18.8% on a year-over-year basis. On average, research analysts predict that Microsoft Corporation will post 19.92 EPS for the current fiscal year.
Microsoft Increases Dividend
The company 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 dividend of $0.98 per share. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is 19.00%.
Insider Buying and Selling at Microsoft
In related news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction on Tuesday, September 1st. The stock was 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 directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 Microsoft stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value 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. The disclosure for this sale is available in the SEC filing. 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 corporate insiders.
Key Headlines Impacting 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 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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