Microsoft Corporation $MSFT Stock Position Cut by Violich Capital Management Inc.

Violich Capital Management Inc. decreased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT) by 2.1% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 173,373 shares of the software giant’s stock after selling 3,706 shares during the quarter. Microsoft accounts for approximately 9.6% of Violich Capital Management Inc.’s investment portfolio, making the stock its 3rd largest position. Violich Capital Management Inc.’s holdings in Microsoft were worth $88,923,000 as of its most recent SEC filing.

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

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Wolfe Research raised Microsoft from a “hold” rating to a “strong-buy” rating in a report on Thursday, October 29th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Microsoft in a report on Monday, September 28th. Scotiabank increased their target price on Microsoft from $625.00 to $650.00 and gave the company a “sector outperform” rating in a research report on Thursday, October 29th. Phillip Securities downgraded Microsoft from a “moderate buy” rating to a “hold” rating in a research report on Monday, October 12th. Finally, Piper Sandler restated an “overweight” rating and set a $650.00 price target (up from $610.00) on shares of Microsoft in a report on Thursday, October 29th. One research analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $609.54.

Insider Activity

In related news, EVP Amy Hood sold 7,305 shares of the company’s 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 sale, the executive vice president directly owned 555,396 shares in the company, valued at $302,924,086.32. This represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 135,504 shares of company stock valued at $68,138,024. Insiders own 0.03% of the company’s stock.

Microsoft Trading Down 1.0%

Shares of NASDAQ:MSFT traded down $5.32 during mid-day trading on Friday, reaching $530.61. 26,926,992 shares of the company’s stock were exchanged, compared to its average volume of 22,422,492. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $559.15. The firm has a market capitalization 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 business’s fifty day moving average price is $516.65 and its 200-day moving average price is $440.18.

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

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. 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%. Microsoft’s payout ratio is currently 19.00%.

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

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.