Calder Financial LLC Invests $1.92 Million in Microsoft Corporation $MSFT

Key Points

• Calder Financial LLC bought a new position of 3,968 Microsoft shares valued at about $1.92 million, representing roughly 1.9% of Calder’s holdings and ranking MSFT as its 11th-largest position.
• Microsoft beat estimates in Q3 with $4.27 EPS (vs. $4.06) and $82.89B revenue (+18.3% YoY), driven by 40%+ Azure/cloud growth and accelerating AI monetization that underpins investor confidence.
• However, heavy AI-related capex (guidance near $190B) and elevated cloud cash burn are weighing on near-term free cash flow and valuation, prompting some analysts to trim price targets despite other bullish notes and Pentagon deal wins.

Calder Financial LLC purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 4th quarter, according to the company in its most recent filing with the SEC. The fund purchased 3,968 shares of the software giant's stock, valued at approximately $1,919,000. Microsoft accounts for approximately 1.9% of Calder Financial LLC's holdings, making the stock its 11th biggest position.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares during the last quarter. Bayforest Capital Ltd bought a new position in Microsoft during the 3rd quarter worth approximately $38,000. Sellwood Investment Partners LLC bought a new position in Microsoft during the 3rd quarter worth approximately $49,000. University of Illinois Foundation bought a new position in Microsoft during the 2nd quarter worth approximately $50,000. Finally, Daytona Street Capital LLC bought a new position in Microsoft during the 4th quarter worth approximately $50,000. Institutional investors own 71.13% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 results and the earnings call highlighted 40%+ Azure/cloud growth and accelerating AI monetization, giving investors confidence in the company’s long-term AI revenue runway. Microsoft Earnings Call: AI Growth Surges, Margins Squeezed
• Positive Sentiment: The U.S. Pentagon signed agreements allowing Microsoft’s AI tech on classified networks — a credibility and contract win that can translate into long-term, high‑value government revenue. Pentagon inks deals with Nvidia, Microsoft and AWS to deploy AI on classified networks
• Positive Sentiment: Analyst actions include several price‑target raises and reaffirmations (Benchmark raised to $525, others keep buy ratings), signaling continued bullish conviction among some buy‑side firms. Microsoft Corp. (MSFT) Price Target Increased to $525 by Benchmark
• Positive Sentiment: Product catalyst: rollout of Windows 11’s new Xbox Mode supports consumer engagement and adds a near‑term, tangible product story for the stock. Microsoft Stock (MSFT) Jumps on Windows 11 Xbox Mode Rollout
• Neutral Sentiment: The revised Microsoft–OpenAI relationship (ending exclusivity) is being parsed by markets: it reduces some exclusivity upside but clarifies commercial terms that could be neutral-to-positive longer term depending on monetization. Microsoft and OpenAI Just Ended Their Exclusive Deal, and Wall Street Is Trying Hard to Shake Off the Negatives for MSFT Stock
• Neutral Sentiment: Commentary from TV/hosts (e.g., Jim Cramer) describes MSFT as attractively valued but notes limited new messaging on the call — this shapes retail sentiment but isn’t new fundamental data. Jim Cramer on Microsoft: “Maybe You Can Consider It Cheap, But It’s Software”
• Negative Sentiment: Investors remain focused on record capex (roughly $190B guidance) and the near‑term hit to free cash flow — that spending narrative caused the post‑earnings pullback and continues to cap the multiple. Beat meets bill: MSFT stock slips on AI expenditure concerns despite strong Q3
• Negative Sentiment: Goldman’s note flagging extreme cloud cash burn and other outlets highlighting the industry’s rising AI capex raises concern that spending could pressure margins and returns if monetization lags. Microsoft, Amazon On Watch ― Goldman Sounds Alarm On 90% Cloud Cash Burn
• Negative Sentiment: Some brokers trimmed price targets or cut upside on valuation as they bake in capex risk (HSBC cut its target), keeping a portion of the market cautious. HSBC Cuts Microsoft Price Target to $571 From $593

Microsoft Stock Up 1.6%

Microsoft stock opened at $414.41 on Friday. The company has a 50 day moving average of $395.28 and a 200-day moving average of $447.91. The company has a quick ratio of 1.38, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $3.08 trillion, a PE ratio of 24.67, a price-to-earnings-growth ratio of 1.56 and a beta of 1.10. Microsoft Corporation has a twelve month low of $356.28 and a twelve month high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The firm's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.46 earnings per share. On average, equities research analysts anticipate that Microsoft Corporation will post 16.68 EPS for the current fiscal year.

Microsoft Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on MSFT shares. UBS Group reissued a "buy" rating on shares of Microsoft in a research note on Friday, April 24th. Stifel Nicolaus lifted their price objective on shares of Microsoft from $392.00 to $415.00 and gave the stock a "hold" rating in a research note on Thursday. HSBC reduced their price objective on shares of Microsoft from $593.00 to $571.00 in a research note on Thursday. Truist Financial reduced their price objective on shares of Microsoft from $675.00 to $575.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $556.15.

Insiders Place Their Bets

In other Microsoft news, Director John W. Stanton acquired 5,000 shares of the business's stock in a transaction dated Wednesday, February 18th. The shares were acquired at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the transaction, the director directly owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Kathleen T. Hogan sold 12,321 shares of the business's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of the sale, the executive vice president directly owned 137,933 shares in the company, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 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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