BDFS Capital LLC Makes New $2.36 Million Investment in Microsoft Corporation $MSFT

Key Points

• BDFS Capital LLC opened a new position in Microsoft, buying 4,882 shares worth about $2.36 million in the fourth quarter. Microsoft now makes up roughly 1.2% of the firm’s portfolio.
• Institutional interest in Microsoft remains strong, with the article noting that 71.13% of the stock is owned by hedge funds and other institutional investors. Several other firms also recently added to or initiated positions in MSFT.
• Analysts remain broadly bullish despite some price-target cuts, with Microsoft holding a “Moderate Buy” consensus and a target price of $561.20. The company also posted strong recent earnings, beating estimates on both EPS and revenue.

BDFS Capital LLC acquired a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 4,882 shares of the software giant's stock, valued at approximately $2,361,000. Microsoft comprises approximately 1.2% of BDFS Capital LLC's portfolio, making the stock its 14th biggest holding.

Several other large investors have also modified their holdings of MSFT. Longfellow Investment Management Co. LLC raised its position in shares of 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 buying an additional 20 shares during the period. 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 stake in Microsoft during the fourth quarter worth about $36,000. Fairway Wealth LLC increased its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after acquiring an additional 66 shares during the last quarter. Finally, University of Illinois Foundation purchased a new position in shares of Microsoft in the 2nd quarter worth about $50,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. China Renaissance reduced their price objective on Microsoft from $630.00 to $550.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. President Capital raised their price target on shares of Microsoft from $500.00 to $520.00 and gave the company a "buy" rating in a report on Thursday, April 30th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Microsoft in a research report on Thursday, April 30th. Truist Financial decreased their price objective on shares of Microsoft from $675.00 to $575.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Microsoft in a research report on Monday, May 4th. Forty-one analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $561.20.

More Microsoft News

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 Stock Performance

NASDAQ MSFT opened at $379.40 on Friday. The company's fifty day simple moving average is $412.37 and its 200-day simple moving average is $425.58. Microsoft Corporation has a 52 week low of $356.28 and a 52 week high of $555.45. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The stock has a market cap of $2.82 trillion, a P/E ratio of 22.58, a PEG ratio of 1.37 and a beta of 1.11.

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

Microsoft Announces Dividend

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

Insiders Place Their Bets

In other news, CEO Judson Althoff sold 15,500 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of the transaction, the executive vice president owned 47,468 shares of the company's stock, valued at $19,122,009.12. This trade represents a 8.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 in the last ninety days. Corporate insiders own 0.03% of the company's stock.

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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