Microsoft Corporation $MSFT Shares Acquired by CapWealth Advisors LLC

CapWealth Advisors LLC grew its position in Microsoft Corporation (NASDAQ:MSFT) by 1.7% in the third quarter, HoldingsChannel.com reports. The fund owned 84,108 shares of the software giant’s stock after buying an additional 1,380 shares during the quarter. Microsoft comprises 3.3% of CapWealth Advisors LLC’s portfolio, making the stock its 4th biggest position. CapWealth Advisors LLC’s holdings in Microsoft were worth $43,139,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also modified their holdings of the company. Montgomery Financial Services LLC acquired a new stake in Microsoft in the second quarter valued at approximately $26,000. Frankly Finances LLC purchased a new position in Microsoft in the second quarter worth about $35,000. Bard Associates Inc. purchased a new stake in Microsoft in the 2nd quarter worth $37,000. PMV Capital Advisers LLC purchased a new stake in shares of Microsoft during the second quarter valued at $38,000. Finally, Fiduciary Advisors Inc. boosted its position in shares of Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after purchasing an additional 34 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

Analysts Set New Price Targets

MSFT has been the topic of a number of analyst reports. Piper Sandler restated an “overweight” rating and issued a $650.00 price target (up from $610.00) on shares of Microsoft in a research note on Thursday, October 29th. TD Cowen lifted their price target on shares of Microsoft from $625.00 to $650.00 and gave the stock a “buy” rating in a research note on Thursday, October 29th. Bank of America lifted their price target on shares of Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a research note on Tuesday, September 1st. Griffin Securities lowered Microsoft from a “buy” rating to a “neutral” rating in a research report on Thursday, October 29th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $640.00 price target on shares of Microsoft in a research report on Thursday, October 29th. One equities research 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. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $609.54.

Microsoft Trading Down 1.0%

Shares of NASDAQ:MSFT opened at $530.61 on Friday. 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 firm has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a PEG ratio of 1.56 and a beta of 1.05. The company’s fifty day simple moving average is $516.65 and its 200 day simple moving average is $440.18. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $559.15.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating the consensus estimate of $4.72 by $0.17. The firm had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The business’s quarterly revenue was up 18.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.13 earnings per share. As a group, research analysts forecast that Microsoft Corporation will post 19.89 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders 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 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio is presently 19.00%.

Insider Buying and Selling

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 of the company’s stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 dated 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 sale, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. The trade was a 1.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 135,504 shares of company stock worth $68,138,024. 0.03% of the stock is owned by insiders.

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

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.