Caprock Group LLC Purchases 25,730 Shares of Microsoft Corporation $MSFT

Key Points

• Caprock Group LLC increased its Microsoft stake by 9.4% in the fourth quarter, buying 25,730 shares and bringing its holdings to 300,250 shares valued at about $145.2 million.
• Microsoft reported strong quarterly results, with EPS of $4.27 and revenue of $82.89 billion, both ahead of estimates, while revenue grew 18.3% year over year.
• The company also announced a quarterly dividend of $0.91 per share, and analysts remain broadly bullish, with 39 Buy ratings and a consensus “Moderate Buy” price target of $560.88.

Caprock Group LLC raised its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 9.4% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 300,250 shares of the software giant's stock after buying an additional 25,730 shares during the quarter. Microsoft accounts for about 3.1% of Caprock Group LLC's holdings, making the stock its 4th biggest position. Caprock Group LLC's holdings in Microsoft were worth $145,207,000 as of its most recent filing with the SEC.

Several other large investors have also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC increased its stake in 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 buying an additional 20 shares during the period. Bayforest Capital Ltd acquired a new position in Microsoft in the 3rd quarter valued at approximately $38,000. LSV Asset Management acquired a new position in Microsoft in the 4th quarter valued at approximately $44,000. Sellwood Investment Partners LLC acquired a new position in Microsoft in the 3rd quarter valued at approximately $49,000. Finally, Daytona Street Capital LLC acquired a new position in Microsoft in the 4th quarter valued at approximately $50,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Microsoft Stock Performance

MSFT stock 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. The company has a market capitalization of $3.13 trillion, a price-to-earnings ratio of 25.11, a P/E/G ratio of 1.52 and a beta of 1.10. Microsoft Corporation has a 12 month low of $356.28 and a 12 month high of $555.45. The firm has a 50 day moving average of $398.18 and a two-hundred day moving average of $441.39.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.06 by $0.21. The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. Microsoft's quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.46 EPS. As a group, equities analysts anticipate that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Announces Dividend

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

Key Headlines Impacting 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

Analyst Ratings Changes

Several research analysts have weighed in on MSFT shares. JPMorgan Chase & Co. dropped their price objective on shares of Microsoft from $575.00 to $550.00 and set an "overweight" rating on the stock in a research note on Thursday, January 29th. BNP Paribas Exane decreased their target price on shares of Microsoft from $556.00 to $555.00 and set an "outperform" rating for the company in a research report on Friday, May 1st. Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a research report on Thursday, January 29th. Scotiabank decreased their target price on shares of Microsoft from $600.00 to $550.00 and set an "outperform" rating for the company in a research report on Thursday, April 30th. Finally, Barclays reissued a "buy" rating on shares of Microsoft in a research report on Thursday, May 7th. Thirty-nine equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $560.88.

Insider Buying and Selling at Microsoft

In related news, EVP Kathleen T. Hogan sold 12,321 shares of the company'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 completion of the sale, the executive vice president directly owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John W. Stanton acquired 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The shares were purchased at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.03% of the stock is currently owned by corporate insiders.

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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