Belleair Asset Management LLC Makes New Investment in Microsoft Corporation $MSFT

Key Points

• Belleair Asset Management opened a new position in Microsoft during the fourth quarter, buying 2,606 shares worth about $1.26 million. Microsoft now makes up roughly 1.2% of the firm’s portfolio.
• Other institutional investors also added to Microsoft holdings, and hedge funds and institutions still own 71.13% of the company’s stock. That suggests continued broad professional interest in the shares.
• Microsoft’s recent fundamentals and outlook remain solid: the company beat quarterly earnings and revenue estimates, posted 18.3% revenue growth, and announced a quarterly dividend of $0.91 per share. Analysts remain broadly positive, with a consensus rating of Moderate Buy.

Belleair Asset Management LLC purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 2,606 shares of the software giant's stock, valued at approximately $1,260,000. Microsoft accounts for approximately 1.2% of Belleair Asset Management LLC's holdings, making the stock its 20th largest holding.

Several other institutional investors also recently added to or reduced their stakes in the company. North Star Investment Management Corp. increased its position in Microsoft by 2.0% during the fourth quarter. North Star Investment Management Corp. now owns 95,719 shares of the software giant's stock worth $46,292,000 after buying an additional 1,884 shares during the period. Safe Harbor Family Capital LLC acquired a new position in Microsoft during the fourth quarter worth approximately $1,239,000. Reicon Wealth Advisors LLC acquired a new position in Microsoft during the fourth quarter worth approximately $214,000. Spectrum Financial Alliance Ltd LLC increased its position in Microsoft by 3.9% during the fourth quarter. Spectrum Financial Alliance Ltd LLC now owns 772 shares of the software giant's stock worth $374,000 after buying an additional 29 shares during the period. Finally, WoodTrust Financial Corp increased its position in Microsoft by 0.9% during the fourth quarter. WoodTrust Financial Corp now owns 63,616 shares of the software giant's stock worth $30,766,000 after buying an additional 564 shares during the period. Institutional investors and hedge funds own 71.13% of the company's stock.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is expected to showcase new homegrown AI models at Build, including a coding model that could improve GitHub Copilot and support future developer adoption. Microsoft to release new coding model next week, the Information reports
• Positive Sentiment: Wall Street commentary is turning more bullish on Microsoft’s AI revenue potential, with Morgan Stanley and HSBC both suggesting the market may be underestimating future upside from Azure, Copilot, and the Anthropic relationship. Is Wall Street underestimating MSFT AI revenue potential? Morgan Stanley weighs in
• Positive Sentiment: Microsoft also benefited from a broad tech rally, with AI and software stocks leading the market higher late in the session. Sector Update: Tech Stocks Rise Late Afternoon
• Positive Sentiment: Microsoft secured a five-year $9.69 billion Pentagon software deal that consolidates government licensing and reinforces its entrenched enterprise and public-sector position. Pentagon awards Microsoft $9.7 billion deal in bid to cut costs, end license sprawl
• Neutral Sentiment: Some articles also note Microsoft’s heavy AI spending and the risk of capital misallocation across the sector, which could keep valuation debates active even as the stock trends higher. Peter Schiff: The $1 Trillion AI CapEx Bubble Is Hiding a Massive Capital Misallocation

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Robert W. Baird cut their price target on Microsoft from $540.00 to $500.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 15th. Jefferies Financial Group reiterated a "buy" rating on shares of Microsoft in a research note on Monday, May 4th. The Goldman Sachs Group reiterated a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Stifel Nicolaus lifted their target price on Microsoft from $392.00 to $415.00 and gave the company a "hold" rating in a research note on Thursday, April 30th. Finally, TD Cowen upgraded Microsoft from a "buy" rating to a "hold" rating in a research note on Tuesday, May 5th. Thirty-nine research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $560.88.

Insider Buying and Selling

In related news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the transaction, the executive vice president directly owned 46,003 shares of the company's stock, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction on Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following the transaction, the executive vice president directly owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.03% of the stock is owned by insiders.

Microsoft Stock Up 3.5%

Microsoft stock opened at $426.99 on Friday. 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 1-year low of $356.28 and a 1-year high of $555.45. The company has a market cap of $3.17 trillion, a PE ratio of 25.42, a price-to-earnings-growth ratio of 1.49 and a beta of 1.10. The stock's 50 day moving average price is $400.93 and its 200 day moving average price is $434.51.

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

Microsoft Dividend Announcement

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

About Microsoft

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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