Catalyst Investment Management LLC Invests $1.10 Million in Microsoft Corporation $MSFT

Key Points

• Catalyst Investment Management initiated a new Microsoft position in Q4, buying 2,271 shares worth about $1.1 million. The stake represents roughly 1% of the firm’s holdings and is its 26th-largest position.
• Microsoft continues to attract broad institutional interest, with 71.13% of shares held by hedge funds and other institutional investors. Several other funds also added to or started positions in the stock during recent quarters.
• Analysts remain generally positive on Microsoft, with a consensus “Moderate Buy” and a target price of $561.20. The company also beat its latest quarterly EPS and revenue estimates, while paying a quarterly dividend of $0.91 per share.

Catalyst Investment Management LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,271 shares of the software giant's stock, valued at approximately $1,098,000. Microsoft makes up about 1.0% of Catalyst Investment Management LLC's holdings, making the stock its 26th largest position.

Several other institutional investors and hedge funds have also bought and sold shares of MSFT. Longfellow Investment Management Co. LLC boosted its holdings in Microsoft by 51.3% in the second 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 in the last quarter. Bernzott Capital Advisors bought a new position in Microsoft in the 4th quarter worth about $34,000. Timmons Wealth Management LLC purchased a new stake in Microsoft during the 4th quarter valued at about $36,000. Fairway Wealth LLC increased its stake in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares in the last quarter. Finally, LSV Asset Management bought a new stake in Microsoft during the 4th quarter valued at about $44,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the stock. Citigroup began coverage on shares of Microsoft in a research report on Monday, June 1st. They set a "market outperform" rating for the company. Scotiabank reduced their target price on Microsoft from $600.00 to $550.00 and set an "outperform" rating for the company in a report on Thursday, April 30th. DZ Bank restated a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft lowered their price target on Microsoft from $575.00 to $550.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $515.00 price objective (down from $630.00) on shares of Microsoft in a research report on Monday, April 27th. Forty-one research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $561.20.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New reporting suggests Microsoft is still benefiting from strong AI demand, including ByteDance spending more than $1 billion annually on Azure AI services and broader commentary that Azure growth and AI run-rate remain major drivers of investor interest. Microsoft Builds $1 Billion-Plus AI Business With ByteDance
• Positive Sentiment: Several pieces argued Microsoft’s pullback may be creating a buying opportunity because the company still has strong cash flow, dividend growth, and discounted valuation relative to its AI prospects. Microsoft's Boring Stock Story May Be Its Biggest Strength
• Neutral Sentiment: Microsoft also drew attention for product and ecosystem updates, including a possible PayPal integration for Xbox buy-now-pay-later checkout and new Teams features, but these are not likely near-term stock movers. Microsoft Sizes Up PayPal as Xbox Leak Exposes Buy Now Pay Later Plans
• Negative Sentiment: Multiple law firms announced or promoted securities class actions tied to Microsoft, alleging investors were harmed by misleading AI/Copilot-related statements during the May 2025 to January 2026 period. These legal headlines can weigh on sentiment. Portnoy Law Firm Announces Class Action on Behalf of Microsoft Corporation Investors
• Negative Sentiment: Another negative overhang is the claim that Copilot functionality issues contributed to a sharp stock drop, reinforcing investor concerns about execution risk and AI spending efficiency. Investor Rights Alert: Microsoft Faces Securities Fraud Class Action after Copilot Issues
• Negative Sentiment: There is also renewed concern that Microsoft’s gaming strategy is under pressure, with coverage pointing to the Steam Machine and broader cost-cutting in gaming as threats to growth in that segment. The Biggest Threat to Microsoft’s Gaming Ambitions is the Steam Machine

Microsoft Stock Performance

NASDAQ:MSFT opened at $379.40 on Friday. The firm has a market capitalization of $2.82 trillion, a PE ratio of 22.58, a PEG ratio of 1.37 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 stock's fifty day moving average is $412.37 and its 200 day moving average is $425.58. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28.

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

Microsoft Announces Dividend

The firm 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. This represents a $3.64 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft's dividend payout ratio (DPR) is 21.67%.

Insider Activity at Microsoft

In related news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the transaction, the executive vice president directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the business'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 value 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 $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,762 shares of company stock worth $10,508,361 over the last three months. Company 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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