Arwa LLC Invests $2.41 Million in Microsoft Corporation $MSFT

Key Points

• Arwa LLC opened a new position in Microsoft during the fourth quarter, buying 4,974 shares worth about $2.41 million. The stake makes Microsoft Arwa’s 11th-largest holding and about 1.4% of its portfolio.
• Wall Street sentiment remains constructive: Microsoft currently has a Moderate Buy consensus rating, with 41 Buy ratings and an average price target of $561.20.
• Microsoft recently beat quarterly expectations, reporting $4.27 EPS and $82.89 billion in revenue, while also announcing a quarterly dividend of $0.91 per share for a 1.0% yield.

Arwa LLC bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 4,974 shares of the software giant's stock, valued at approximately $2,406,000. Microsoft accounts for approximately 1.4% of Arwa LLC's portfolio, making the stock its 11th largest holding.

Several other hedge funds and other institutional investors have also recently bought and sold shares of MSFT. Longfellow Investment Management Co. LLC increased its stake in Microsoft by 51.3% in 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 in the last quarter. Bernzott Capital Advisors purchased a new stake in Microsoft during the fourth quarter valued at about $34,000. Timmons Wealth Management LLC acquired a new position in shares of Microsoft in the fourth quarter worth about $36,000. Fairway Wealth LLC boosted its holdings in shares of Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after buying an additional 66 shares during the period. Finally, University of Illinois Foundation purchased a new position in shares of Microsoft in the second quarter worth approximately $50,000. 71.13% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on MSFT shares. Barclays restated an "overweight" rating on shares of Microsoft in a report on Wednesday, June 3rd. Rothschild & Co Redburn lowered their price target on Microsoft from $450.00 to $400.00 and set a "neutral" rating on the stock in a report on Thursday, April 23rd. Raymond James Financial lowered Microsoft from a "market perform" rating to a "market perform" rating in a research report on Tuesday, May 5th. Jefferies Financial Group restated a "buy" rating on shares of Microsoft in a research report on Monday, May 4th. Finally, Bank of America initiated coverage on Microsoft in a research note on Tuesday, March 24th. They set a "buy" rating and a $500.00 target price on the stock. Forty-one analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $561.20.

Microsoft Price Performance

Shares of Microsoft stock opened at $379.40 on Friday. The firm has a market cap of $2.82 trillion, a price-to-earnings ratio of 22.58, a P/E/G ratio of 1.37 and a beta of 1.11. 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 Corporation has a 52-week low of $356.28 and a 52-week high of $555.45. The stock has a 50-day simple moving average of $412.37 and a 200-day simple moving average of $425.58.

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

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft's dividend payout ratio (DPR) is 21.67%.

Insider Buying and Selling at Microsoft

In other news, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 23,762 shares of company stock worth $10,508,361 over the last three months. Corporate insiders own 0.03% of the company's stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New reporting suggests Microsoft is still benefiting from strong AI demand, including ByteDance spending more than $1 billion annually on Azure AI services and broader commentary that Azure growth and AI run-rate remain major drivers of investor interest. Microsoft Builds $1 Billion-Plus AI Business With ByteDance
• Positive Sentiment: Several pieces argued Microsoft’s pullback may be creating a buying opportunity because the company still has strong cash flow, dividend growth, and discounted valuation relative to its AI prospects. Microsoft's Boring Stock Story May Be Its Biggest Strength
• Neutral Sentiment: Microsoft also drew attention for product and ecosystem updates, including a possible PayPal integration for Xbox buy-now-pay-later checkout and new Teams features, but these are not likely near-term stock movers. Microsoft Sizes Up PayPal as Xbox Leak Exposes Buy Now Pay Later Plans
• Negative Sentiment: Multiple law firms announced or promoted securities class actions tied to Microsoft, alleging investors were harmed by misleading AI/Copilot-related statements during the May 2025 to January 2026 period. These legal headlines can weigh on sentiment. Portnoy Law Firm Announces Class Action on Behalf of Microsoft Corporation Investors
• Negative Sentiment: Another negative overhang is the claim that Copilot functionality issues contributed to a sharp stock drop, reinforcing investor concerns about execution risk and AI spending efficiency. Investor Rights Alert: Microsoft Faces Securities Fraud Class Action after Copilot Issues
• Negative Sentiment: There is also renewed concern that Microsoft’s gaming strategy is under pressure, with coverage pointing to the Steam Machine and broader cost-cutting in gaming as threats to growth in that segment. The Biggest Threat to Microsoft’s Gaming Ambitions is the Steam Machine

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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