Sarasin Cuts Microsoft Stake 5.5% as Others Trim Positions
In Q3, Sarasin & Partners cut its Microsoft stake by 5.5%, selling 114,836 shares to hold 1.98M shares valued at $1.02B and Seneca House Advisors trimmed 3,049 shares (9.6%) to 28,560 shares worth $14.79M. Lineweaver Wealth Advisors reduced holding 5.8% to 23,187 shares ($12.01M) while Tlwm sold 1,148 shares (19%).
1. Seneca House Advisors Reduces Microsoft Stake
Seneca House Advisors trimmed its position in Microsoft Corporation by 9.6% during the third quarter, selling 3,049 shares to hold 28,560 shares at period end. This position represents approximately 6.0% of the firm’s total portfolio, down from its second-quarter weighting, and ranks as the fund’s third-largest single holding. At the end of the quarter, the Microsoft stake was valued at $14.793 million, reflecting the advisor’s scaled-back conviction amid broader portfolio rebalancing.
2. Institutional Ownership and Shifts
Institutional investors now control 71.13% of Microsoft’s outstanding shares, with several hedge funds and asset managers adjusting their exposures. Longfellow Investment Management increased its stake by 51.3% to 59 shares, Bulwark Capital established a new $32,000 position, and Westend Capital opted for a 386.7% boost to 73 shares. Meanwhile, Sarasin & Partners cut its Microsoft holdings by 5.5%, retaining 1.98 million shares—its largest portfolio position worth $1.02 billion. These moves highlight divergent views on Microsoft’s near-term growth trajectory.
3. Earnings and Dividend Profile
In its latest quarter, Microsoft delivered $4.13 in earnings per share, surpassing consensus estimates by $0.48, and posted revenue of $77.67 billion—an 18.4% year-over-year increase. Net margin stood at 35.7%, while return on equity reached 32.5%. The company declared a quarterly dividend of $0.91 per share, translating to a $3.64 annualized payout and a 25.9% dividend-to-earnings ratio, with the next distribution scheduled for March 12 and an ex-dividend record date of February 19.
4. Valuation and Balance Sheet Metrics
Microsoft maintains a fortress balance sheet with a debt-to-equity ratio of 0.10, a quick ratio of 1.39 and a current ratio of 1.40. Analysts peg its forward price-to-earnings multiple near 35x and assign a price-to-earnings-growth ratio of 1.83x, underscoring expectations of sustained double-digit revenue growth driven by cloud services and AI initiatives. With a market capitalization exceeding $3.6 trillion, the software giant’s valuation reflects its leadership position in enterprise software and infrastructure.