Brown Brothers Harriman & Co. Lowers Holdings in Microsoft Corporation $MSFT

Key Points

• Brown Brothers Harriman & Co. trimmed its Microsoft stake by 1.0% in Q3, selling 18,303 shares and now holds 1,861,557 shares worth $964,193,000, with Microsoft representing 5.9% of its portfolio (its largest position).
• Microsoft has near‑term AI catalysts (a $99/month Copilot bundle launching May 1 and a healthcare Copilot push) and maintains broad analyst support (average target ≈ $591.95/"Moderate Buy"), but faces headwinds from heavy AI data‑center capex, a reported Authenticator vulnerability, leadership turnover, and steeper put‑call demand signaling trader caution.
• Insider activity was mixed: Director John W. Stanton bought 5,000 shares at about $397.35 while EVP Kathleen T. Hogan sold 12,321 shares, and insiders collectively own just 0.03% of the stock.

Brown Brothers Harriman & Co. reduced its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.0% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,861,557 shares of the software giant's stock after selling 18,303 shares during the quarter. Microsoft comprises 5.9% of Brown Brothers Harriman & Co.'s investment portfolio, making the stock its biggest position. Brown Brothers Harriman & Co.'s holdings in Microsoft were worth $964,193,000 as of its most recent SEC filing.

A number of other hedge funds have also bought and sold shares of the business. Longfellow Investment Management Co. LLC grew its position in shares of Microsoft by 51.3% in the second 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 in the last quarter. Bayforest Capital Ltd purchased a new stake in Microsoft during the 3rd quarter worth about $38,000. LSV Asset Management bought a new position in Microsoft in the 4th quarter worth about $44,000. Sellwood Investment Partners LLC bought a new position in Microsoft in the 3rd quarter worth about $49,000. Finally, University of Illinois Foundation purchased a new position in Microsoft during the 2nd quarter valued at about $50,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft has a near-term product catalyst: a $99/month AI tools bundle (includes Copilot capabilities) with a May 1 launch that could drive commercial adoption and recurring ARR growth. Microsoft Is Racing to Beat Claude Cowork. A Big Catalyst for MSFT Stock Is Coming May 1.
• Positive Sentiment: Microsoft is expanding into healthcare AI with Copilot Health (can read medical records and provide personalized insights) and partner integrations, opening a large vertical market and cross‑sell opportunities for Azure and Copilot. Microsoft launched a new healthcare chatbot
• Positive Sentiment: Microsoft 365 E7 bundles Copilot, Anthropic’s Claude Cowork and security tools — a premium enterprise offering that can lift average revenue per user for large customers. Analysts continue to highlight AI-driven revenue upside. Microsoft’s New E7 AI Suite And Healthcare Push Shape Long-Term Outlook
• Neutral Sentiment: Xbox/product cycle news: Microsoft is advancing Project Helix (next‑gen Xbox) but prototypes won’t reach developers until 2027 — positive for long-term console moat but not an immediate revenue driver. Microsoft’s Next Xbox Moves Closer to Reality: What It Means for MSFT Stock
• Neutral Sentiment: Gaming/graphics tech progress (DirectX/advanced shader delivery with NVIDIA/Intel) reduces frictions for PC gaming and helps Xbox/Windows gaming competitiveness but is a more gradual, longer-term tailwind. DirectX Gears Up For ML Era On Windows
• Negative Sentiment: Investor concern about huge AI data‑center capex and public pushback over electricity/costs is weighing on the stock; large lease and buildouts boost growth but increase near‑term cash burn. Who is really footing the AI energy bill? Inside the debate about data center electricity costs
• Negative Sentiment: Security scare: reports of a new vulnerability in Microsoft Authenticator have spooked investors and triggered selling pressure tied to identity/security risk. New Vulnerability in Microsoft Authenticator Sends Microsoft Stock Sliding
• Negative Sentiment: Leadership change: Rajesh Jha, a long‑time head of experiences and devices (Office/Copilot products), announced retirement — creates short‑term execution/transition uncertainty. Microsoft's Rajesh Jha, head of experiences and devices unit, to retire
• Negative Sentiment: Options and flows show increased demand for downside protection (put-call skew steepening), reflecting trader caution after the pullback. Option traders moderately bearish in Microsoft with shareslittle changed

Insider Buying and Selling

In related news, Director John W. Stanton purchased 5,000 shares of the firm's stock in a transaction on Wednesday, February 18th. The shares were acquired at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the purchase, the director directly 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 purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Kathleen T. Hogan sold 12,321 shares of the business's stock in a transaction that occurred on Friday, March 6th. The shares were 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 of the company's stock, valued at $56,486,322.16. The trade was a 8.20% decrease in their position. The SEC filing for this sale provides additional information. 0.03% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on MSFT shares. TD Cowen reaffirmed a "buy" rating on shares of Microsoft in a report on Thursday, January 29th. DA Davidson reaffirmed a "buy" rating and issued a $650.00 price target on shares of Microsoft in a report on Thursday, January 29th. The Goldman Sachs Group restated a "buy" rating on shares of Microsoft in a research report on Thursday, February 12th. Cantor Fitzgerald reissued an "overweight" rating and set a $590.00 price objective on shares of Microsoft in a report on Thursday, January 29th. Finally, Mizuho decreased their price objective on shares of Microsoft from $640.00 to $620.00 and set an "outperform" rating on the stock in a research report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, forty have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $591.95.

Microsoft Price Performance

Shares of NASDAQ:MSFT opened at $395.55 on Friday. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09. The stock has a market cap of $2.94 trillion, a PE ratio of 24.74, a PEG ratio of 1.57 and a beta of 1.10. The company's fifty day moving average is $427.46 and its 200 day moving average is $476.21. Microsoft Corporation has a 52 week low of $344.79 and a 52 week high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.86 by $0.28. The firm had revenue of $81.27 billion for the quarter, compared to analysts' expectations of $80.28 billion. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The company's revenue for the quarter was up 16.7% compared to the same quarter last year. During the same period last year, the firm earned $3.23 earnings per share. Research analysts anticipate that Microsoft Corporation will post 13.08 earnings per share for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft's dividend payout ratio (DPR) is presently 22.76%.

Microsoft 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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