Thu Jan 02 11:40:00 UTC 2025: **Hills Bank & Trust Reduces Microsoft Stake; Mixed Signals from Analysts and Insiders**

**Sioux Falls, SD [Date]** – Hills Bank & Trust Co. trimmed its Microsoft (MSFT) holdings by 1.7% in the third quarter, selling 1,371 shares, according to a recent SEC filing. Despite the reduction, Microsoft remains a significant holding, representing approximately 2.5% of the bank’s portfolio. The value of Hills Bank & Trust’s remaining 77,386 shares totaled $33.3 million.

This move comes amidst varied activity from other institutional investors. Several firms, including Rebalance LLC, First National Bank Sioux Falls, BCK Partners Inc., Flagship Private Wealth LLC, and Massachusetts Wealth Management, increased their Microsoft positions during the second and third quarters, though the increases were relatively small. Institutional investors and hedge funds collectively own 71.13% of MSFT stock.

Analyst sentiment toward Microsoft is mixed. While Truist Financial and Royal Bank of Canada maintain “buy” ratings, Citigroup lowered its price target, and Oppenheimer downgraded the stock from “outperform” to “market perform.” The average analyst rating remains a “Moderate Buy,” with a $509.90 average price target, according to MarketBeat.

Microsoft’s stock closed at $421.50 on Wednesday, down $3.33, following the release of its latest earnings report. The company exceeded earnings per share (EPS) expectations, reporting $3.30 compared to analysts’ estimates of $3.10. Revenue also surpassed predictions. The company also announced a $60 billion share buyback program.

However, recent insider trading activity presents a mixed signal. While Microsoft declared a quarterly dividend of $0.83 per share, EVP Christopher David Young and CMO Takeshi Numoto recently sold significant amounts of company stock, representing 6.51% and 1.71% decreases in their respective holdings, respectively. Over the last ninety days, insiders sold a total of 41,200 shares.

Despite strong earnings and a substantial buyback program, the reduction in holdings by Hills Bank & Trust and insider selling raises questions about the future trajectory of Microsoft’s stock price.

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