Alphinity Investment Management Pty Ltd Reduces Stake in Microsoft Corporation $MSFT

Key Points

• Alphinity Investment Management trimmed its Microsoft stake by 5.6% in the fourth quarter, selling 86,456 shares and leaving it with 1,450,062 shares worth about $701.3 million.
• Microsoft’s latest earnings beat expectations, with EPS of $4.27 versus $4.06 expected and revenue of $82.89 billion, up 18.3% year over year. The company also posted strong profitability, including a 31.94% return on equity.
• Despite some recent regulatory and cost-cutting concerns, analysts remain broadly positive on Microsoft: 39 analysts rate it a Buy, and the consensus price target is $560.88.

Alphinity Investment Management Pty Ltd cut its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,450,062 shares of the software giant's stock after selling 86,456 shares during the quarter. Microsoft makes up 7.1% of Alphinity Investment Management Pty Ltd's investment portfolio, making the stock its 2nd largest holding. Alphinity Investment Management Pty Ltd's holdings in Microsoft were worth $701,279,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. IRON Financial LLC boosted its holdings in Microsoft by 23.2% during the 3rd quarter. IRON Financial LLC now owns 6,510 shares of the software giant's stock valued at $3,372,000 after acquiring an additional 1,225 shares during the period. PMG Family Office LLC purchased a new position in Microsoft during the 3rd quarter valued at $828,000. Trifecta Capital Advisors LLC boosted its holdings in Microsoft by 2.3% during the 3rd quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant's stock valued at $36,347,000 after acquiring an additional 1,572 shares during the period. TD Waterhouse Canada Inc. boosted its holdings in Microsoft by 1.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 949,901 shares of the software giant's stock valued at $493,860,000 after acquiring an additional 9,700 shares during the period. Finally, Werba Rubin Papier Wealth Management boosted its holdings in Microsoft by 15.7% during the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant's stock valued at $6,041,000 after acquiring an additional 1,698 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bill Ackman revealed a new multi-billion-dollar stake in Microsoft (MSFT), saying the company looks attractively valued and highlighting Azure, Microsoft 365, and AI as key growth drivers. Reuters: Ackman's Pershing Square takes stake in Microsoft, citing 'compelling' valuation
• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft’s AI infrastructure, Azure growth, and OpenAI exposure could support further upside, with some seeing the stock’s weaker recent performance as a buying opportunity. TipRanks: Microsoft Buy Rating Reiterated as AI and Cloud Momentum Builds
• Neutral Sentiment: Microsoft also announced a board addition, appointing former EY chief Carmine Di Sibio to its board of directors, which is a governance update but not an immediate operating catalyst. PR Newswire: Microsoft announces appointment of Carmine Di Sibio to board of directors
• Negative Sentiment: The UK opened an antitrust probe into Microsoft’s business software and cloud practices, creating a potential regulatory overhang for the stock. Reuters: UK opens antitrust probe into Microsoft's business software
• Negative Sentiment: LinkedIn, a Microsoft-owned unit, announced 5% workforce cuts, reinforcing that the company is still trimming costs even as it ramps AI spending. Reuters: LinkedIn to lay off 5% of workforce amid tech industry cuts

Microsoft Trading Up 3.1%

Shares of NASDAQ:MSFT opened at $421.92 on Friday. The business's 50-day moving average is $398.18 and its 200 day moving average is $441.39. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45. The firm has a market capitalization of $3.13 trillion, a P/E ratio of 25.11, a P/E/G ratio of 1.52 and a beta of 1.10. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.06 by $0.21. The company had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm's quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the company posted $3.46 EPS. On average, research analysts predict that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a $0.91 dividend. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft's dividend payout ratio is currently 21.67%.

Analysts Set New Price Targets

Several brokerages have weighed in on MSFT. The Goldman Sachs Group reiterated a "buy" rating on shares of Microsoft in a report on Thursday, April 30th. Guggenheim reiterated a "buy" rating and issued a $586.00 target price on shares of Microsoft in a report on Thursday, April 30th. TD Cowen upgraded Microsoft from a "buy" rating to a "hold" rating in a report on Tuesday, May 5th. Truist Financial lowered their target price on Microsoft from $675.00 to $575.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. lowered their target price on Microsoft from $575.00 to $550.00 and set an "overweight" rating for the company in a report on Thursday, January 29th. Thirty-nine equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and a consensus price target of $560.88.

Insider Transactions at Microsoft

In other news, EVP Kathleen T. Hogan sold 12,321 shares of the stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following the transaction, the executive vice president directly owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John W. Stanton acquired 5,000 shares of the business's stock in a transaction dated Wednesday, February 18th. The stock was purchased at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the acquisition, the director directly owned 83,905 shares of the company's stock, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 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).

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