CFO Capital Management LLC Purchases New Position in Microsoft Corporation $MSFT

Key Points

• CFO Capital Management opened a new position in Microsoft during the fourth quarter, buying 9,074 shares worth about $4.39 million. Microsoft now makes up roughly 3.3% of the firm’s portfolio and is its fourth-largest holding.
• Institutional interest in Microsoft remains strong overall, with hedge funds and other institutions owning 71.13% of the stock. Several large investors, including Norges Bank, Nuveen, and UBS AM, also recently added or expanded their MSFT stakes.
• Microsoft’s latest results and outlook remain solid, with quarterly EPS of $4.27 and revenue of $82.89 billion topping estimates. The company also announced a quarterly dividend of $0.91 per share, while analysts still largely rate the stock a Moderate Buy.

CFO Capital Management LLC acquired a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 9,074 shares of the software giant's stock, valued at approximately $4,388,000. Microsoft accounts for about 3.3% of CFO Capital Management LLC's holdings, making the stock its 4th largest position.

Several other institutional investors have also recently made changes to their positions in the stock. Norges Bank bought a new stake in shares of Microsoft during the fourth quarter valued at about $50,664,631,000. Nuveen LLC purchased a new position in Microsoft during the first quarter valued at approximately $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Microsoft by 500.0% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant's stock valued at $30,840,432,000 after acquiring an additional 49,618,571 shares in the last quarter. Laurel Wealth Advisors LLC increased its holdings in Microsoft by 49,640.3% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant's stock worth $14,905,904,000 after acquiring an additional 29,906,791 shares during the period. Finally, Cardano Risk Management B.V. lifted its stake in Microsoft by 908.5% in the 4th quarter. Cardano Risk Management B.V. now owns 23,568,250 shares of the software giant's stock worth $11,398,077,000 after purchasing an additional 21,231,333 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

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 Monday. 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 stock's 50-day simple moving average is $412.37 and its two-hundred day simple moving average is $425.15. Microsoft Corporation has a twelve month low of $356.28 and a twelve month high of $555.45. The company has a market capitalization of $2.82 trillion, a price-to-earnings ratio of 22.58, a PEG ratio of 1.37 and a beta of 1.11.

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 analysts' consensus estimates of $4.06 by $0.21. The firm 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 company's revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the prior year, the business earned $3.46 EPS. Research analysts forecast that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 1.0%. Microsoft's dividend payout ratio is currently 21.67%.

Insiders Place Their Bets

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares in the company, valued at $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 is available at this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of Microsoft 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 transaction, the chief executive officer directly owned 110,477 shares in the company, valued at $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 over the last quarter. 0.03% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several research analysts have commented on the stock. Mizuho cut their price target on shares of Microsoft from $620.00 to $515.00 and set an "outperform" rating for the company in a report on Tuesday, April 14th. DZ Bank reiterated a "buy" rating on shares of Microsoft in a research report on Thursday, April 30th. Evercore dropped their price objective on Microsoft from $580.00 to $510.00 and set an "outperform" rating for the company in a research note on Thursday, April 30th. UBS Group restated a "buy" rating on shares of Microsoft in a research note on Friday, April 24th. Finally, Citizens Jmp initiated coverage on Microsoft in a report on Monday, June 1st. They issued an "outperform" rating and a $550.00 price target on the stock. Forty-one equities 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.com, the stock has an average rating of "Moderate Buy" and an average price target of $561.20.

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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