Maverick Capital Ltd. Sells 424,849 Shares of Microsoft Corporation $MSFT

Maverick Capital Ltd. reduced its position in Microsoft Corporation (NASDAQ:MSFT) by 36.9% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 725,649 shares of the software giant’s stock after selling 424,849 shares during the period. Microsoft comprises 3.1% of Maverick Capital Ltd.’s investment portfolio, making the stock its 8th biggest position. Maverick Capital Ltd.’s holdings in Microsoft were worth $268,613,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC grew its position in shares of Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares during the last quarter. Bernzott Capital Advisors acquired a new position in shares of Microsoft during the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC purchased a new stake in Microsoft in the 4th quarter valued at approximately $36,000. Fairway Wealth LLC grew its holdings in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after buying an additional 66 shares during the last quarter. Finally, University of Illinois Foundation acquired a new stake in Microsoft during the 2nd quarter valued at $50,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 completion of the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 37,310 shares of company stock valued at $17,256,219 in the last ninety days. 0.03% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

MSFT has been the subject of a number of analyst reports. Raymond James Financial cut Microsoft from a “market perform” rating to a “market perform” rating in a report on Tuesday, May 5th. Sanford C. Bernstein set a $660.00 target price on shares of Microsoft in a research note on Monday. China Renaissance reduced their target price on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a report on Monday, May 4th. Phillip Securities cut shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Finally, TD Cowen reiterated a “buy” rating and set a $540.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $560.27.

Microsoft Trading Down 2.3%

Shares of MSFT opened at $492.43 on Thursday. The stock’s 50-day moving average is $408.32 and its two-hundred day moving average is $407.67. The stock has a market cap of $3.66 trillion, a PE ratio of 27.42, a P/E/G ratio of 1.62 and a beta of 1.11. Microsoft Corporation has a 12 month low of $349.20 and a 12 month 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) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.65 earnings per share. Equities analysts forecast that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL
• Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target
• Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft
• Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand
• Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap?
• Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).