Berkshire Money Management Inc. Makes New Investment in Microsoft Corporation $MSFT

Key Points

• Berkshire Money Management Inc. opened a new position in Microsoft during the fourth quarter, buying 6,498 shares worth about $3.14 million. Microsoft now makes up 0.3% of the firm’s portfolio and is its 28th largest holding.
• Microsoft reported strong quarterly results, with EPS of $4.27 beating estimates and revenue of $82.89 billion topping forecasts. Revenue rose 18.3% year over year, underscoring continued growth in the business.
• The company also announced a quarterly dividend of $0.91 per share, payable on June 11, and Wall Street remains broadly positive with a Moderate Buy consensus and an average price target of $562.69.

Berkshire Money Management Inc. acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 4th quarter, according to its most recent 13F filing with the SEC. The fund acquired 6,498 shares of the software giant's stock, valued at approximately $3,142,000. Microsoft comprises 0.3% of Berkshire Money Management Inc.'s investment portfolio, making the stock its 28th biggest holding.

Several other hedge funds and other institutional investors also recently bought and sold shares of MSFT. IRON Financial LLC grew its stake in Microsoft by 23.2% during the 3rd quarter. IRON Financial LLC now owns 6,510 shares of the software giant's stock worth $3,372,000 after buying an additional 1,225 shares during the last quarter. PMG Family Office LLC bought a new position in Microsoft during the 3rd quarter worth $828,000. Trifecta Capital Advisors LLC grew its stake in Microsoft by 2.3% during the 3rd quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant's stock worth $36,347,000 after buying an additional 1,572 shares during the last quarter. TD Waterhouse Canada Inc. grew its stake in Microsoft by 1.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 949,901 shares of the software giant's stock worth $493,860,000 after buying an additional 9,700 shares during the last quarter. Finally, Weaver Capital Management LLC grew its stake in Microsoft by 14.0% during the 3rd quarter. Weaver Capital Management LLC now owns 18,340 shares of the software giant's stock worth $9,499,000 after buying an additional 2,247 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Trading Down 1.2%

Shares of MSFT stock opened at $407.77 on Wednesday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45. The stock has a fifty day moving average of $397.60 and a two-hundred day moving average of $443.14. The firm has a market capitalization of $3.03 trillion, a PE ratio of 24.27, a price-to-earnings-growth ratio of 1.49 and a beta of 1.10.

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

Microsoft Announces Dividend

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

Wall Street Analyst Weigh In

A number of research analysts recently commented on MSFT shares. Jefferies Financial Group restated a "buy" rating on shares of Microsoft in a research note on Monday, May 4th. Weiss Ratings downgraded Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, March 24th. Deutsche Bank Aktiengesellschaft lowered their price objective on Microsoft from $575.00 to $550.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Wedbush restated an "outperform" rating and set a $575.00 price objective on shares of Microsoft in a research note on Thursday, April 30th. Finally, William Blair reiterated an "outperform" rating on shares of Microsoft in a research report on Monday, March 9th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $562.69.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft remains a long-term AI winner, with several notes saying the stock still looks undervalued and that its AI/Cloud thesis remains intact. Microsoft’s (MSFT) Q3 Revealed 3 Things that Matter for the AI Bull Case
• Positive Sentiment: Microsoft CEO Satya Nadella’s testimony in the Musk v. Altman trial reinforced Microsoft’s early backing of OpenAI and its expected payoff from that investment, which some investors view as supportive of the company’s AI strategy. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Positive Sentiment: OpenAI reportedly capped revenue-sharing payments to Microsoft at $38 billion through 2030, which may be read as a structural clarification that still preserves a major economic relationship while supporting OpenAI’s IPO path. Microsoft secures structural wins in OpenAI revenue cap deal, Wedbush says
• Neutral Sentiment: Microsoft was mentioned in broader AI-market commentary about whether AI spending is generating enough ROI, which adds to sentiment volatility but does not directly change fundamentals. Chamath Warns Companies Must Prove ROI from AI Within ‘500 Days’
• Neutral Sentiment: Several reports focused on Microsoft’s role in OpenAI’s founding and governance in the Musk lawsuit; these headlines keep the stock in the news, but the market impact is mostly indirect unless they lead to regulatory or contractual changes. How Much Power Did Microsoft Have Over OpenAI?
• Negative Sentiment: The biggest near-term overhang is the perception that Microsoft may have less upside from OpenAI than previously assumed, after reports that revenue-sharing is capped far below earlier projections. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Negative Sentiment: Nadella’s testimony in the Musk trial also highlighted how closely Microsoft is tied to OpenAI’s governance fight, keeping legal and reputational risks in focus for investors. Microsoft CEO Satya Nadella takes stand in Musk v. Altman trial

Insider Buying and Selling at Microsoft

In other news, EVP Kathleen T. Hogan sold 12,321 shares of the company's 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 completion of the sale, the executive vice president owned 137,933 shares in the company, valued at $56,486,322.16. This represents a 8.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director John W. Stanton acquired 5,000 shares of the business's stock in a transaction dated Wednesday, February 18th. The stock was purchased 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 of the company's stock, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.03% of the company's stock.

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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