Capital Financial Group Inc. Co. ADV Acquires New Position in Microsoft Corporation $MSFT

Key Points

• Capital Financial Group Inc. Co. ADV opened a new position in Microsoft during the fourth quarter, buying 1,356 shares valued at about $656,000.
• Microsoft’s latest quarterly results topped expectations, with earnings per share of $4.27 versus $4.06 expected and revenue of $82.89 billion, up 18.3% year over year.
• The company also announced a quarterly dividend of $0.91 per share, while the stock was trading lower and insider selling continued, including notable sales by EVP Takeshi Numoto and CEO Judson Althoff.

Capital Financial Group Inc. Co. ADV acquired a new stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,356 shares of the software giant's stock, valued at approximately $656,000.

A number of other hedge funds have also recently modified their holdings of MSFT. ARK & TLK Investments LLC boosted its stake in Microsoft by 1.0% during the third quarter. ARK & TLK Investments LLC now owns 1,935 shares of the software giant's stock worth $1,002,000 after buying an additional 20 shares during the period. Rochester Wealth Strategies LLC boosted its stake in Microsoft by 2.9% during the third quarter. Rochester Wealth Strategies LLC now owns 700 shares of the software giant's stock worth $363,000 after buying an additional 20 shares during the period. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after buying an additional 20 shares during the period. Shepherd Kaplan Krochuk LLC boosted its stake in Microsoft by 4.9% during the third 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 period. Finally, Fischer Investment Strategies LLC boosted its stake in Microsoft by 3.1% during the fourth quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant's stock worth $337,000 after buying an additional 21 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Stock Down 1.5%

Shares of NASDAQ:MSFT opened at $393.83 on Wednesday. The firm's 50 day moving average price is $412.01 and its 200 day moving average price is $427.45. The stock has a market cap of $2.93 trillion, a price-to-earnings ratio of 23.44, a price-to-earnings-growth ratio of 1.44 and a beta of 1.11. Microsoft Corporation has a fifty-two week low of $356.28 and a fifty-two week high of $555.45. 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 (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping analysts' consensus estimates 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 analysts' expectations of $81.44 billion. During the same quarter last year, the company earned $3.46 earnings per share. The firm's revenue for the quarter was up 18.3% on a year-over-year basis. As a group, equities research analysts predict that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders 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 yield of 0.9%. Microsoft's dividend payout ratio (DPR) is presently 21.67%.

Insiders Place Their Bets

In other Microsoft news, EVP Takeshi Numoto sold 4,500 shares of the firm's 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. This trade represents a 8.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Judson Althoff sold 15,500 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the sale, the chief executive officer directly owned 110,477 shares in the company, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 23,762 shares of company stock valued at $10,508,361. 0.03% of the stock is owned by corporate insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft launched a new AI agent with pay-as-you-go pricing, a shift that could improve monetization and help the company capture more revenue as customers adopt usage-based AI tools.
• Positive Sentiment: Reports say Microsoft is exploring lower-cost AI model options for Copilot, which could reduce infrastructure costs and improve profitability if implemented successfully.
• Positive Sentiment: Microsoft’s product and AI roadmap continues to attract long-term bulls, with analysts and investors still pointing to the company’s strong enterprise position and AI-driven growth potential.
• Neutral Sentiment: Microsoft was reported to have held talks for a $3 billion Oracle cloud infrastructure lease, but the deal reportedly collapsed over security and compliance issues, limiting any near-term impact on operations.
• Neutral Sentiment: Coverage around a possible Xbox restructuring or spin-off highlights strategic uncertainty in gaming, though it could eventually improve Microsoft’s overall margin profile if the division is separated or reshaped.
• Negative Sentiment: Shareholders filed a class action and securities-fraud investigations were announced over alleged misstatements tied to Azure growth and AI spending, creating legal and reputational overhang for Microsoft Corporation NASDAQ: MSFT.
• Negative Sentiment: Reports that Microsoft may shut down or restructure Xbox studios add to concerns that the gaming segment is a drag on profitability and could require more restructuring costs.
• Negative Sentiment: Recent commentary also points to heavy AI capital expenditures and softer Azure growth, reinforcing investor worries that Microsoft’s spending is rising faster than its cloud revenue growth.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Citigroup assumed coverage on shares of Microsoft in a research note on Monday, June 1st. They set a "market outperform" rating for the company. Rothschild & Co Redburn lowered their target price on shares of Microsoft from $450.00 to $400.00 and set a "neutral" rating for the company in a research note on Thursday, April 23rd. Royal Bank Of Canada reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, May 22nd. UBS Group reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, April 24th. Finally, Stifel Nicolaus increased their target price on shares of Microsoft from $392.00 to $415.00 and gave the stock a "hold" rating in a research note on Thursday, April 30th. Forty-one analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Microsoft has an average rating of "Moderate Buy" and a consensus target price of $561.20.

Microsoft Company 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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