Arrow Capital Pty Ltd Sells 2,927 Shares of Microsoft Corporation $MSFT

Key Points

• Arrow Capital Pty Ltd reduced its stake in Microsoft (MSFT) by 19.6%, selling 2,927 shares to hold 12,000 shares valued at about $6.215 million, making MSFT roughly 0.1% of the firm's portfolio and its 5th largest holding.
• Microsoft faces near-term upside from AI initiatives—most notably a $99/month Copilot bundle launching May 1 and expansion into healthcare AI and enterprise Copilot/E7 bundles—but investors are also weighing large AI data‑center capex and a recent Microsoft Authenticator vulnerability as downside risks.
• Wall Street remains broadly positive with a consensus rating of "Moderate Buy" and an average target of about $591.95; MSFT trades down ~1.6%, has a market cap near $2.94 trillion, a PE of ~24.7, and pays a quarterly dividend of $0.91.

Arrow Capital Pty Ltd lessened its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 19.6% in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 12,000 shares of the software giant's stock after selling 2,927 shares during the quarter. Microsoft comprises about 0.1% of Arrow Capital Pty Ltd's holdings, making the stock its 5th largest holding. Arrow Capital Pty Ltd's holdings in Microsoft were worth $6,215,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC increased its stake in 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 buying an additional 20 shares during the period. Bayforest Capital Ltd acquired a new position in Microsoft in the 3rd quarter worth $38,000. LSV Asset Management purchased a new position in Microsoft in the 4th quarter valued at about $44,000. Sellwood Investment Partners LLC purchased a new position in Microsoft in the 3rd quarter valued at about $49,000. Finally, University of Illinois Foundation acquired a new stake in shares of Microsoft during the second quarter valued at about $50,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft has a near-term product catalyst: a $99/month AI tools bundle (includes Copilot capabilities) with a May 1 launch that could drive commercial adoption and recurring ARR growth. Microsoft Is Racing to Beat Claude Cowork. A Big Catalyst for MSFT Stock Is Coming May 1.
• Positive Sentiment: Microsoft is expanding into healthcare AI with Copilot Health (can read medical records and provide personalized insights) and partner integrations, opening a large vertical market and cross‑sell opportunities for Azure and Copilot. Microsoft launched a new healthcare chatbot
• Positive Sentiment: Microsoft 365 E7 bundles Copilot, Anthropic’s Claude Cowork and security tools — a premium enterprise offering that can lift average revenue per user for large customers. Analysts continue to highlight AI-driven revenue upside. Microsoft’s New E7 AI Suite And Healthcare Push Shape Long-Term Outlook
• Neutral Sentiment: Xbox/product cycle news: Microsoft is advancing Project Helix (next‑gen Xbox) but prototypes won’t reach developers until 2027 — positive for long-term console moat but not an immediate revenue driver. Microsoft’s Next Xbox Moves Closer to Reality: What It Means for MSFT Stock
• Neutral Sentiment: Gaming/graphics tech progress (DirectX/advanced shader delivery with NVIDIA/Intel) reduces frictions for PC gaming and helps Xbox/Windows gaming competitiveness but is a more gradual, longer-term tailwind. DirectX Gears Up For ML Era On Windows
• Negative Sentiment: Investor concern about huge AI data‑center capex and public pushback over electricity/costs is weighing on the stock; large lease and buildouts boost growth but increase near‑term cash burn. Who is really footing the AI energy bill? Inside the debate about data center electricity costs
• Negative Sentiment: Security scare: reports of a new vulnerability in Microsoft Authenticator have spooked investors and triggered selling pressure tied to identity/security risk. New Vulnerability in Microsoft Authenticator Sends Microsoft Stock Sliding
• Negative Sentiment: Leadership change: Rajesh Jha, a long‑time head of experiences and devices (Office/Copilot products), announced retirement — creates short‑term execution/transition uncertainty. Microsoft's Rajesh Jha, head of experiences and devices unit, to retire
• Negative Sentiment: Options and flows show increased demand for downside protection (put-call skew steepening), reflecting trader caution after the pullback. Option traders moderately bearish in Microsoft with shareslittle changed

Wall Street Analyst Weigh In

Several research firms recently commented on MSFT. Robert W. Baird set a $540.00 price target on Microsoft and gave the stock an "outperform" rating in a research note on Thursday, January 29th. William Blair restated an "outperform" rating on shares of Microsoft in a research note on Monday, March 9th. Piper Sandler restated an "overweight" rating and set a $600.00 price objective (down from $650.00) on shares of Microsoft in a report on Thursday, January 29th. JPMorgan Chase & Co. cut their target price on Microsoft from $575.00 to $550.00 and set an "overweight" rating on the stock in a research report on Thursday, January 29th. Finally, BNP Paribas Exane increased their target price on Microsoft from $632.00 to $659.00 and gave the company an "outperform" rating in a research note on Tuesday, January 27th. Two investment analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $591.95.

Microsoft Trading Down 1.6%

NASDAQ MSFT opened at $395.55 on Friday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. Microsoft Corporation has a one year low of $344.79 and a one year high of $555.45. The company has a 50-day simple moving average of $427.46 and a 200-day simple moving average of $476.03. The firm has a market capitalization of $2.94 trillion, a PE ratio of 24.74, a price-to-earnings-growth ratio of 1.55 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share for the quarter, topping the consensus estimate of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The firm had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. During the same quarter in the prior year, the business earned $3.23 earnings per share. Microsoft's quarterly revenue was up 16.7% on a year-over-year basis. On average, equities analysts forecast that Microsoft Corporation will post 13.08 earnings per share for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders 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 dividend yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft's dividend payout ratio is presently 22.76%.

Insider Buying and Selling

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