Microsoft Corporation $MSFT Stock: Sapient Capital LLC Trims Position

Sapient Capital LLC cut its position in shares of Microsoft Corporation (NASDAQ:MSFT) by 8.4% in the second quarter, HoldingsChannel reports. The firm owned 438,394 shares of the software giant’s stock after selling 40,222 shares during the period. Microsoft comprises about 1.9% of Sapient Capital LLC’s investment portfolio, making the stock its 7th largest holding. Sapient Capital LLC’s holdings in Microsoft were worth $163,530,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Midwest Capital Advisors LLC raised its holdings in shares of Microsoft by 16.6% in the first quarter. Midwest Capital Advisors LLC now owns 422 shares of the software giant’s stock valued at $156,000 after acquiring an additional 60 shares in the last quarter. Friedenthal Financial grew its holdings in Microsoft by 6.2% during the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock worth $160,000 after acquiring an additional 25 shares in the last quarter. Patton Fund Management Inc. grew its holdings in Microsoft by 11.8% during the 1st quarter. Patton Fund Management Inc. now owns 549 shares of the software giant’s stock worth $203,000 after acquiring an additional 58 shares in the last quarter. Summit Portfolio Management LTD. purchased a new position in Microsoft during the 1st quarter valued at about $208,000. Finally, Evergreen Advisors LLC increased its position in Microsoft by 9.4% during the 1st quarter. Evergreen Advisors LLC now owns 571 shares of the software giant’s stock valued at $211,000 after purchasing an additional 49 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reported earnings of $4.89 per share versus the $4.71–$4.72 consensus and revenue of $92.28 billion, up 19% year over year and above estimates of approximately $90.6 billion. Net income increased 32%, while the company extended its streak of record quarterly revenue. Microsoft Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Azure growth accelerated to 48%, generating approximately $33.2 billion in quarterly revenue. Stronger-than-expected cloud demand suggests Microsoft’s investments in artificial intelligence and Copilot-related services are beginning to translate into significant sales and profit growth. Microsoft Azure Revenue Surges
• Neutral Sentiment: Microsoft disclosed that commercial arrangements with OpenAI produced roughly $10 billion of revenue during the quarter, highlighting the value of the partnership but also the company’s substantial financial dependence on a single AI ecosystem. Microsoft Recorded $10 Billion in Revenue From OpenAI
• Negative Sentiment: Microsoft lowered its 2026 capital-expenditure forecast to $170 billion from $175 billion, citing delays in third-party capacity. The reduction may ease cash-flow pressure, but it also raises concerns that infrastructure constraints could limit Azure growth and delay returns on AI investment. Microsoft Cuts Capex Forecast on AI Capacity Delays
• Negative Sentiment: The company is offering voluntary buyouts to roughly 60,000 employees while spending heavily on data centers. Although the effort could improve long-term efficiency, investors may view it as evidence that Microsoft is managing mounting AI-related costs. Rising interest rates also pose a valuation risk for the high-growth technology sector.

Wall Street Analyst Weigh In

MSFT has been the subject of several recent research reports. BMO Capital Markets boosted their price target on shares of Microsoft from $515.00 to $600.00 and gave the company an “outperform” rating in a report on Tuesday, October 20th. Cantor Fitzgerald increased their price objective on shares of Microsoft from $522.00 to $608.00 and gave the company an “overweight” rating in a research note on Monday, September 21st. The Goldman Sachs Group reissued a “buy” rating and set a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Wolfe Research lowered shares of Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday, September 23rd. Finally, Mizuho boosted their price objective on shares of Microsoft from $510.00 to $600.00 and gave the stock an “outperform” rating in a research note on Thursday, October 15th. Forty-four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $596.07.

Microsoft Price Performance

MSFT opened at $531.01 on Thursday. The business’s 50-day moving average is $511.18 and its two-hundred day moving average is $437.96. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $551.15. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The firm has a market capitalization of $3.94 trillion, a PE ratio of 29.57, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last announced its earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping analysts’ consensus estimates of $4.71 by $0.18. The business had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s revenue was up 18.8% on a year-over-year basis. During the same period in the previous year, the company posted $4.13 earnings per share. Research analysts anticipate that Microsoft Corporation will post 19.66 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is presently 20.27%.

Insider Activity

In related news, EVP Amy Hood sold 41,674 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. The trade was a 7.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the 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 directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 150,314 shares of company stock worth $75,404,992. Insiders own 0.03% of the company’s stock.

Microsoft Company Profile

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.