Apella Capital LLC Boosts Stake in Microsoft Corporation $MSFT

Key Points

• Apella Capital LLC increased its Microsoft stake by 22.6%, buying 18,885 shares to hold 102,628 shares worth about $49.63 million, representing roughly 1.0% of Apella's portfolio and its 22nd largest position.
• Positive catalysts include OpenAI's ChatGPT Images 2.0 and large enterprise deals (e.g., Stellantis, Accenture integrations), which bolster Azure and AI-driven revenue opportunities for Microsoft.
• Risks include a U.K. tribunal ordering Microsoft to face a £2.1B (~$2.8B) mass lawsuit over Windows Server licensing and heightened scrutiny of AI capital spending, even as Wall Street's consensus remains a Moderate Buy with an average target near $576.66.

Apella Capital LLC increased its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 22.6% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 102,628 shares of the software giant's stock after buying an additional 18,885 shares during the period. Microsoft accounts for about 1.0% of Apella Capital LLC's investment portfolio, making the stock its 22nd biggest position. Apella Capital LLC's holdings in Microsoft were worth $49,633,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the company. IRON Financial LLC increased its position in shares of Microsoft by 23.2% in 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 acquired a new position in shares of Microsoft in the 3rd quarter valued at $828,000. Trifecta Capital Advisors LLC increased its position in shares of Microsoft by 2.3% in 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. Weaver Capital Management LLC increased its position in shares of Microsoft by 14.0% in the 3rd quarter. Weaver Capital Management LLC now owns 18,340 shares of the software giant's stock valued at $9,499,000 after acquiring an additional 2,247 shares during the period. Finally, TD Waterhouse Canada Inc. increased its position in shares of Microsoft by 1.0% in 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. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: OpenAI (backed by Microsoft) launched ChatGPT Images 2.0 — improvements to OpenAI’s image capabilities strengthen the product ecosystem that Microsoft leverages via its OpenAI partnership and Azure hosting, supporting longer-term AI revenue opportunities. OpenAI Launches ChatGPT Images 2.0 – Here’s What You Need to KnowArticle
• Positive Sentiment: Large enterprise deals deepen Azure and Microsoft 365 Copilot adoption — a five-year collaboration with Stellantis and industrial showcases at Hannover Messe (and Accenture partnerships) signal expanding, sticky enterprise AI workflows that drive cloud consumption and services revenue. Microsoft Deepens Industrial AI Role With Stellantis And Hannover Messe DealsArticle
• Positive Sentiment: Accenture’s agentic factory system debuts with Microsoft integrations — another indicator of enterprise traction for Azure-based AI platforms and professional services monetization. Accenture's New Agentic Factory System Debuts With MicrosoftArticle
• Neutral Sentiment: Investor chatter and analysts expect a rebound into earnings: social-media buzz and many buy ratings highlight Azure growth and AI backlog optimism ahead of Microsoft’s April 29 report — but the stock has drawn intense debate about valuation and execution. Microsoft Stock (MSFT) Opinions on Rebound Ahead of EarningsArticle
• Neutral Sentiment: Xbox Game Pass price cut — the new Xbox leadership is trimming subscription prices to boost engagement; could lift user growth and retention but may compress near-term gaming revenue/margins. Microsoft cuts Game Pass subscription prices after new Xbox CEO promises to 'recommit' to gamersArticle
• Neutral Sentiment: Citigroup trimmed its MSFT price target from $635 to $600 but kept a buy rating — a reminder that analyst targets are being adjusted while consensus remains constructive (median targets still well above current levels). Finviz — Citigroup price target noteArticle
• Negative Sentiment: U.K. tribunal ruled Microsoft must face a £2.1B (~$2.8B) mass lawsuit alleging overcharging for Windows Server licenses on rival clouds — a sizeable litigation risk that could lead to material settlements and heightened regulatory/legal scrutiny. Microsoft must face $2.8 billion UK lawsuit over cloud computing licencesArticle
• Negative Sentiment: Analysis piece flags scrutiny of Microsoft’s AI investments and capital intensity — investors may worry about the pace, returns and governance of large AI capex and partnerships, which can pressure near-term margins and share performance. Microsoft AI Investments Face ScrutinyArticle

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. New Street Research increased their price target on Microsoft from $670.00 to $675.00 and gave the stock a "buy" rating in a research report on Tuesday, March 31st. Phillip Securities raised shares of Microsoft from a "moderate buy" rating to a "strong-buy" rating in a report on Sunday, February 1st. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Microsoft from $630.00 to $575.00 and set a "buy" rating for the company in a research report on Thursday, January 29th. Wolfe Research dropped their target price on Microsoft from $625.00 to $530.00 and set an "outperform" rating on the stock in a research report on Thursday, January 29th. Finally, Daiwa Securities Group dropped their target price on Microsoft from $630.00 to $600.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and an average target price of $576.66.

Microsoft Stock Up 1.5%

Shares of NASDAQ MSFT opened at $424.16 on Wednesday. The company has a 50 day simple moving average of $392.16 and a 200-day simple moving average of $452.23. The company has a market capitalization of $3.15 trillion, a P/E ratio of 26.53, a P/E/G ratio of 1.58 and a beta of 1.11. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.86 by $0.28. The business had revenue of $81.27 billion during the quarter, compared to the consensus estimate of $80.28 billion. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The business's revenue was up 16.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.23 EPS. On average, equities research analysts predict that Microsoft Corporation will post 16.54 earnings per share for the current year.

Microsoft Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft's dividend payout ratio (DPR) is 22.76%.

Insider Activity at Microsoft

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

Microsoft 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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