BXM Wealth LLC Lowers Stake in Microsoft Corporation $MSFT

Key Points

• BXM Wealth LLC sharply reduced its Microsoft stake by 95.7% in the first quarter, selling 111,309 shares and leaving it with 5,001 shares valued at about $1.85 million.
• Microsoft reported better-than-expected quarterly results, with EPS of $4.27 versus $4.06 expected and revenue of $82.89 billion versus $81.44 billion expected, while revenue grew 18.3% year over year.
• The company also announced a quarterly dividend of $0.91 per share, payable on September 10, alongside a mixed backdrop of insider selling, analyst price-target cuts, and recent negative headlines around Xbox layoffs and shareholder lawsuits.

BXM Wealth LLC cut its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 95.7% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 5,001 shares of the software giant's stock after selling 111,309 shares during the quarter. Microsoft comprises about 1.4% of BXM Wealth LLC's portfolio, making the stock its 17th biggest position. BXM Wealth LLC's holdings in Microsoft were worth $1,851,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently made changes to their positions in the stock. Longfellow Investment Management Co. LLC lifted its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after buying an additional 20 shares during the last quarter. Shepherd Kaplan Krochuk LLC grew its position in shares of Microsoft by 4.9% in the 3rd quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant's stock worth $223,000 after buying an additional 20 shares during the last quarter. Fischer Investment Strategies LLC raised its stake in shares of Microsoft by 3.1% during the 4th quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant's stock worth $337,000 after acquiring an additional 21 shares in the last quarter. Pollock Investment Advisors LLC raised its stake in shares of Microsoft by 0.8% during the 3rd quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant's stock worth $1,453,000 after acquiring an additional 21 shares in the last quarter. Finally, Better Money Decisions LLC lifted its position in Microsoft by 0.6% during the second quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant's stock valued at $1,740,000 after acquiring an additional 21 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

Insider Buying and Selling

In other Microsoft news, CEO Judson Althoff sold 15,500 shares of the firm's stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer directly 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 position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the sale, the executive vice president owned 47,468 shares of the company's stock, valued at approximately $19,122,009.12. The trade was a 8.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 23,762 shares of company stock valued at $10,508,361 over the last quarter. 0.03% of the stock is currently owned by company insiders.

Microsoft Price Performance

NASDAQ MSFT opened at $383.34 on Thursday. The company has a market cap of $2.85 trillion, a price-to-earnings ratio of 22.82, a PEG ratio of 1.22 and a beta of 1.13. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The stock's fifty day moving average price is $404.01 and its 200 day moving average price is $415.50. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $555.45.

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

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft's payout ratio is 21.67%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is shifting more Excel and Outlook AI prompts to its own MAI models instead of relying on OpenAI and Anthropic, a move that could reduce AI costs and improve long-term profitability. Microsoft joins AI cost-cutting trend by relying more on its own models
• Positive Sentiment: Several analysts and market commentators argue Microsoft is trading at a rare discount after its recent pullback, suggesting some investors see the sell-off as a buying opportunity ahead of earnings later this month. Microsoft (MSFT) Is Trading at a Rare Discount. I See a Buying Opportunity
• Neutral Sentiment: Microsoft announced it will report fiscal fourth-quarter 2026 results on July 29, keeping attention on cloud growth, AI spending, and whether margin pressure is easing. Microsoft announces quarterly earnings release date
• Neutral Sentiment: Microsoft continues to get positive attention from some market voices, including CNBC’s “Final Trades,” but this is more sentiment support than a direct fundamental catalyst. Nvidia, Microsoft, ServiceNow And More On CNBC’s ‘Final Trades’
• Negative Sentiment: Microsoft’s Xbox unit is facing a deep reset, including roughly 3,200 job cuts and studio divestitures, reinforcing concerns that parts of the business are struggling and that layoffs may not be done yet. Microsoft’s Xbox to Cut 3200 Jobs, Divest Five Studios in Major Overhaul
• Negative Sentiment: Microsoft is also dealing with multiple shareholder lawsuits and deadline reminders tied to alleged securities fraud and Copilot-related disclosures, which adds an overhang on sentiment. MSFT Investment Loss: Microsoft Investors that Lost Money after Copilot Functionality Issues Disclosed are Notified to Contact BFA Law about the Filed Securities Fraud Class Action

Analysts Set New Price Targets

Several equities research analysts have weighed in on MSFT shares. HSBC lowered their target price on shares of Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Oppenheimer reiterated an "outperform" rating and set a $515.00 price objective (down from $630.00) on shares of Microsoft in a report on Monday, April 27th. Jefferies Financial Group reissued a "buy" rating on shares of Microsoft in a research report on Monday, May 4th. Piper Sandler restated an "overweight" rating on shares of Microsoft in a research note on Tuesday, May 26th. Finally, Benchmark reaffirmed a "buy" rating and set a $525.00 target price (up from $450.00) on shares of Microsoft in a research report on Tuesday, April 28th. Forty investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $560.98.

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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