Breachway Investments LLC Acquires Shares of 2,911 Microsoft Corporation $MSFT

Key Points

• Breachway Investments LLC opened a new position in Microsoft during the fourth quarter, buying 2,911 shares valued at about $1.4 million. Microsoft now makes up roughly 1.5% of the firm’s holdings.
• Microsoft’s latest earnings topped expectations, with EPS of $4.27 versus the $4.06 consensus and revenue of $82.89 billion, up 18.3% year over year. The company also announced a quarterly dividend of $0.91 per share.
• Recent news remains mixed: bullish commentary continues to highlight Microsoft’s AI and Azure growth, but the stock also faces a UK antitrust probe and LinkedIn has announced 5% workforce cuts.

Breachway Investments LLC acquired a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 2,911 shares of the software giant's stock, valued at approximately $1,408,000. Microsoft accounts for approximately 1.5% of Breachway Investments LLC's holdings, making the stock its 19th largest holding.

A number of other hedge funds have also recently added to or reduced their stakes in the stock. Longfellow Investment Management Co. LLC increased its stake 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 valued at $29,000 after purchasing an additional 20 shares during the last quarter. Bayforest Capital Ltd bought a new stake in Microsoft during the 3rd quarter worth $38,000. LSV Asset Management bought a new stake in Microsoft during the 4th quarter worth $44,000. Sellwood Investment Partners LLC bought a new stake in Microsoft during the 3rd quarter worth $49,000. Finally, Daytona Street Capital LLC bought a new stake in Microsoft during the 4th quarter worth $50,000. Institutional investors own 71.13% of the company's stock.

Insider Transactions at Microsoft

In other Microsoft news, Director John W. Stanton purchased 5,000 shares of Microsoft stock in a transaction that occurred on Wednesday, February 18th. The shares were bought at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the acquisition, the director directly owned 83,905 shares in the company, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of the business's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the transaction, the executive vice president directly owned 137,933 shares in the company, valued at approximately $56,486,322.16. The trade was 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.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bill Ackman revealed a new multi-billion-dollar stake in Microsoft (MSFT), saying the company looks attractively valued and highlighting Azure, Microsoft 365, and AI as key growth drivers. Reuters: Ackman's Pershing Square takes stake in Microsoft, citing 'compelling' valuation
• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft’s AI infrastructure, Azure growth, and OpenAI exposure could support further upside, with some seeing the stock’s weaker recent performance as a buying opportunity. TipRanks: Microsoft Buy Rating Reiterated as AI and Cloud Momentum Builds
• Neutral Sentiment: Microsoft also announced a board addition, appointing former EY chief Carmine Di Sibio to its board of directors, which is a governance update but not an immediate operating catalyst. PR Newswire: Microsoft announces appointment of Carmine Di Sibio to board of directors
• Negative Sentiment: The UK opened an antitrust probe into Microsoft’s business software and cloud practices, creating a potential regulatory overhang for the stock. Reuters: UK opens antitrust probe into Microsoft's business software
• Negative Sentiment: LinkedIn, a Microsoft-owned unit, announced 5% workforce cuts, reinforcing that the company is still trimming costs even as it ramps AI spending. Reuters: LinkedIn to lay off 5% of workforce amid tech industry cuts

Microsoft Stock Up 3.1%

Shares of NASDAQ MSFT opened at $421.92 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. Microsoft Corporation has a 52 week low of $356.28 and a 52 week high of $555.45. The firm's fifty day moving average is $398.18 and its 200 day moving average is $441.39. The company has a market cap of $3.13 trillion, a price-to-earnings ratio of 25.11, a PEG ratio of 1.47 and a beta of 1.10.

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

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued 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 currently 21.67%.

Analyst Upgrades and Downgrades

A number of research firms have commented on MSFT. Stifel Nicolaus upped their price target on Microsoft from $392.00 to $415.00 and gave the company a "hold" rating in a research report on Thursday, April 30th. Melius Research set a $430.00 price target on Microsoft in a research note on Monday, February 9th. Raymond James Financial downgraded Microsoft from a "market perform" rating to a "market perform" rating in a research note on Tuesday, May 5th. Morgan Stanley reaffirmed an "overweight" rating on shares of Microsoft in a research report on Thursday, January 29th. Finally, BMO Capital Markets reduced their price objective on Microsoft from $575.00 to $505.00 and set an "outperform" rating for the company in a report on Tuesday, April 28th. Thirty-nine equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $560.88.

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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