Microsoft Corporation $MSFT Position Lowered by Maverick Capital Ltd.

Maverick Capital Ltd. reduced its position in shares of Microsoft Corporation (NASDAQ:MSFT) by 36.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 725,649 shares of the software giant’s stock after selling 424,849 shares during the period. Microsoft comprises approximately 3.1% of Maverick Capital Ltd.’s portfolio, making the stock its 8th largest position. Maverick Capital Ltd.’s holdings in Microsoft were worth $268,613,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Longfellow Investment Management Co. LLC lifted its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after purchasing an additional 20 shares during the last quarter. Shepherd Kaplan Krochuk LLC increased its stake in Microsoft by 4.9% in the third quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock valued at $223,000 after purchasing an additional 20 shares during the last quarter. Fischer Investment Strategies LLC raised its holdings in Microsoft by 3.1% during the fourth quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant’s stock worth $337,000 after purchasing an additional 21 shares in the last quarter. Pollock Investment Advisors LLC raised its holdings in Microsoft by 0.8% during the third quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock worth $1,453,000 after purchasing an additional 21 shares in the last quarter. Finally, Better Money Decisions LLC lifted its position in shares of Microsoft by 0.6% during the 2nd quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock worth $1,740,000 after buying an additional 21 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

Trending Headlines about Microsoft

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

Microsoft Trading Down 2.3%

NASDAQ:MSFT opened at $492.43 on Thursday. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock’s 50 day simple moving average is $408.32 and its 200-day simple moving average is $407.67. The firm has a market cap of $3.66 trillion, a P/E ratio of 27.42, a PEG ratio of 1.62 and a beta of 1.11.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period last year, the company earned $3.65 earnings per share. Equities analysts anticipate that Microsoft Corporation will post 19.58 EPS for the current year.

Microsoft Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio is currently 20.27%.

Analysts Set New Price Targets

MSFT has been the subject of several research analyst reports. Dbs Bank lowered their target price on shares of Microsoft from $678.00 to $573.00 in a report on Thursday, May 7th. Wedbush reissued an “outperform” rating and issued a $575.00 price target on shares of Microsoft in a research report on Wednesday, May 13th. Argus decreased their price objective on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research note on Friday, July 10th. Mizuho dropped their price objective on Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a report on Wednesday, July 15th. Finally, BNP Paribas Exane cut their target price on Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a research report on Friday, May 1st. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and an average price target of $560.27.

Insider Activity

In related news, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 value of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 37,310 shares of company stock valued at $17,256,219 over the last three months. 0.03% of the stock is currently owned by corporate insiders.

Microsoft Company Profile

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).