AMI Asset Management Corp Sells 5,905 Shares of Microsoft Corporation $MSFT

Key Points

• AMI Asset Management Corp cut its Microsoft stake by 2.5%, selling 5,905 shares and now holds 232,738 shares valued at about $112.56 million, making MSFT roughly 6.4% of AMI’s portfolio and its third-largest holding.
• Microsoft beat quarterly estimates with EPS of $4.27 (vs. $4.06) and revenue of $82.89 billion (+18.3% YoY), with Azure/cloud growth and accelerating AI monetization highlighted as key growth drivers.
• Microsoft pays a quarterly dividend of $0.91 (0.9% yield), has a market cap near $3.08 trillion and ~71% institutional ownership, while recent insider activity included an EVP selling 12,321 shares and a director buying 5,000 shares.

AMI Asset Management Corp reduced its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 2.5% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 232,738 shares of the software giant's stock after selling 5,905 shares during the period. Microsoft accounts for about 6.4% of AMI Asset Management Corp's portfolio, making the stock its 3rd largest holding. AMI Asset Management Corp's holdings in Microsoft were worth $112,557,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC increased its stake in shares of Microsoft by 51.3% during the 2nd 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. Bayforest Capital Ltd acquired a new position in shares of Microsoft during the 3rd quarter worth about $38,000. Sellwood Investment Partners LLC acquired a new position in shares of Microsoft during the 3rd quarter worth about $49,000. University of Illinois Foundation bought a new stake in shares of Microsoft during the 2nd quarter worth about $50,000. Finally, Daytona Street Capital LLC bought a new stake in shares of Microsoft during the 4th quarter worth about $50,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Performance

Shares of Microsoft stock opened at $414.41 on Friday. The company has a 50 day moving average of $395.28 and a 200-day moving average of $447.91. Microsoft Corporation has a 1-year low of $356.28 and a 1-year high of $555.45. The company has a current ratio of 1.28, a quick ratio of 1.38 and a debt-to-equity ratio of 0.08. The company has a market cap of $3.08 trillion, a PE ratio of 24.67, a price-to-earnings-growth ratio of 1.56 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping analysts' consensus estimates of $4.06 by $0.21. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The company had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same quarter in the prior year, the firm posted $3.46 EPS. The firm's quarterly revenue was up 18.3% on a year-over-year basis. As a group, equities research analysts forecast that Microsoft Corporation will post 16.68 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

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

Insider Buying and Selling

In related news, EVP Kathleen T. Hogan sold 12,321 shares of the company's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of the transaction, the executive vice president directly owned 137,933 shares in the company, valued at $56,486,322.16. This represents a 8.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John W. Stanton acquired 5,000 shares of the stock in a transaction that occurred on Wednesday, February 18th. The shares were bought at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the transaction, the director owned 83,905 shares in the company, valued at $33,339,651.75. This represents a 6.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.03% of the stock is owned by corporate insiders.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 results and the earnings call highlighted 40%+ Azure/cloud growth and accelerating AI monetization, giving investors confidence in the company’s long-term AI revenue runway. Microsoft Earnings Call: AI Growth Surges, Margins Squeezed
• Positive Sentiment: The U.S. Pentagon signed agreements allowing Microsoft’s AI tech on classified networks — a credibility and contract win that can translate into long-term, high‑value government revenue. Pentagon inks deals with Nvidia, Microsoft and AWS to deploy AI on classified networks
• Positive Sentiment: Analyst actions include several price‑target raises and reaffirmations (Benchmark raised to $525, others keep buy ratings), signaling continued bullish conviction among some buy‑side firms. Microsoft Corp. (MSFT) Price Target Increased to $525 by Benchmark
• Positive Sentiment: Product catalyst: rollout of Windows 11’s new Xbox Mode supports consumer engagement and adds a near‑term, tangible product story for the stock. Microsoft Stock (MSFT) Jumps on Windows 11 Xbox Mode Rollout
• Neutral Sentiment: The revised Microsoft–OpenAI relationship (ending exclusivity) is being parsed by markets: it reduces some exclusivity upside but clarifies commercial terms that could be neutral-to-positive longer term depending on monetization. Microsoft and OpenAI Just Ended Their Exclusive Deal, and Wall Street Is Trying Hard to Shake Off the Negatives for MSFT Stock
• Neutral Sentiment: Commentary from TV/hosts (e.g., Jim Cramer) describes MSFT as attractively valued but notes limited new messaging on the call — this shapes retail sentiment but isn’t new fundamental data. Jim Cramer on Microsoft: “Maybe You Can Consider It Cheap, But It’s Software”
• Negative Sentiment: Investors remain focused on record capex (roughly $190B guidance) and the near‑term hit to free cash flow — that spending narrative caused the post‑earnings pullback and continues to cap the multiple. Beat meets bill: MSFT stock slips on AI expenditure concerns despite strong Q3
• Negative Sentiment: Goldman’s note flagging extreme cloud cash burn and other outlets highlighting the industry’s rising AI capex raises concern that spending could pressure margins and returns if monetization lags. Microsoft, Amazon On Watch ― Goldman Sounds Alarm On 90% Cloud Cash Burn
• Negative Sentiment: Some brokers trimmed price targets or cut upside on valuation as they bake in capex risk (HSBC cut its target), keeping a portion of the market cautious. HSBC Cuts Microsoft Price Target to $571 From $593

Wall Street Analysts Forecast Growth

MSFT has been the subject of several research analyst reports. Piper Sandler lifted their target price on shares of Microsoft from $500.00 to $540.00 and gave the stock an "overweight" rating in a report on Thursday. New Street Research reduced their target price on shares of Microsoft from $675.00 to $600.00 and set a "buy" rating for the company in a report on Thursday. Evercore reduced their target price on shares of Microsoft from $580.00 to $510.00 and set an "outperform" rating for the company in a report on Thursday. Cantor Fitzgerald decreased their target price on shares of Microsoft to $502.00 and set an "overweight" rating on the stock in a research report on Monday, April 27th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Microsoft from $575.00 to $550.00 and set an "overweight" rating on the stock in a research report on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $556.15.

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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