Chelsea Counsel Co. Has $6.47 Million Stock Position in Microsoft Corporation $MSFT

Key Points

• Chelsea Counsel Co. reduced its Microsoft position by 16.9% in the first quarter, selling 3,560 shares and retaining 17,488 shares valued at approximately $6.47 million. Microsoft represents 2.8% of the firm’s portfolio, while institutions and hedge funds collectively own 71.13% of the stock.
• Microsoft reported strong quarterly results, with EPS of $4.74 and revenue of $90.01 billion, surpassing analyst estimates and marking 17.7% year-over-year revenue growth. Analysts maintain a “Moderate Buy” consensus, with an average price target of $560.27.
• Microsoft’s AI and cloud outlook remains positive, highlighted by Azure reportedly exceeding $100 billion in annual revenue and development of its Maia 300 accelerator. However, concerns include potential AI-chip capacity shortfalls, heavy infrastructure spending and recent insider stock sales.

Chelsea Counsel Co. lessened its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 16.9% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 17,488 shares of the software giant's stock after selling 3,560 shares during the period. Microsoft makes up about 2.8% of Chelsea Counsel Co.'s holdings, making the stock its 11th largest position. Chelsea Counsel Co.'s holdings in Microsoft were worth $6,473,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of MSFT. Evansbrook LLC lifted its holdings in shares of Microsoft by 1.3% in the 1st quarter. Evansbrook LLC now owns 6,060 shares of the software giant's stock worth $2,243,000 after purchasing an additional 77 shares in the last quarter. Wealthquest Corp grew its position in Microsoft by 2.5% in the 1st quarter. Wealthquest Corp now owns 13,041 shares of the software giant's stock valued at $4,828,000 after purchasing an additional 324 shares during the period. Stillwater Private Wealth LLC bought a new stake in Microsoft during the 1st quarter valued at $762,000. Parallel Advisors LLC raised its holdings in Microsoft by 0.4% during the first quarter. Parallel Advisors LLC now owns 306,265 shares of the software giant's stock worth $113,370,000 after buying an additional 1,348 shares during the last quarter. Finally, NewEdge Advisors LLC raised its holdings in Microsoft by 4.0% during the first quarter. NewEdge Advisors LLC now owns 1,572,845 shares of the software giant's stock worth $582,220,000 after buying an additional 60,460 shares during the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s Azure business reportedly surpassed $100 billion in annual revenue, reinforcing confidence that AI demand is translating into substantial cloud growth. The company’s strong recent earnings, rising Microsoft 365 seat count and increasing adoption of premium E7 and Copilot offerings provide additional long-term growth support. Azure revenue article Microsoft 365 seats article
• Positive Sentiment: William Blair reaffirmed a Buy rating, citing early AI monetization and a constructive long-term risk-reward profile. Other coverage highlighted Microsoft’s ability to generate cash while investing heavily in AI infrastructure, distinguishing it from some competitors. Microsoft Buy rating article
• Positive Sentiment: Microsoft is developing its Maia 300 AI accelerator, potentially reducing dependence on Nvidia processors and improving supply flexibility and infrastructure economics over time. Maia 300 chip article
• Neutral Sentiment: A partnership with Plug Power tested hydrogen fuel-cell backup power for Microsoft data centers. The trial could support data-center resilience, but Plug’s CEO said it does not represent a strategic pivot or an immediate material change for Microsoft. Plug Power and Microsoft article
• Negative Sentiment: A Guardian investigation raised questions about a possible shortfall in advanced AI chips installed across Microsoft’s facilities relative to its stated data-center expansion plans. Reports cited a potential gap of roughly 2.2 million chips, fueling concerns about deployment timing, capacity and near-term AI revenue growth. Microsoft chip capacity article
• Negative Sentiment: Morgan Stanley warned that heavy AI capital expenditure and rising debt-related obligations could pressure hyperscaler credit quality. Although Microsoft has a strong balance sheet, the warning increases scrutiny of whether massive infrastructure spending will generate adequate returns. Morgan Stanley hyperscaler warning

Microsoft Price Performance

Microsoft stock opened at $480.35 on Tuesday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company's 50 day moving average price is $412.64 and its two-hundred day moving average price is $408.06. The stock has a market cap of $3.57 trillion, a P/E ratio of 26.75, a P/E/G ratio of 1.59 and a beta of 1.10. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.Microsoft's quarterly revenue was up 17.7% on a year-over-year basis. During the same period in the prior year, the company posted $3.65 earnings per share. On average, equities analysts predict that Microsoft Corporation will post 19.59 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. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.8%. Microsoft's dividend payout ratio (DPR) is currently 20.27%.

Insiders Place Their Bets

In related news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Judson Althoff sold 10,000 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. This trade represents a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,310 shares of company stock worth $17,256,219 over the last quarter. Company insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Arete Research upped their target price on shares of Microsoft from $730.00 to $870.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Scotiabank reiterated an "outperform" rating and set a $510.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Wolfe Research reissued an "outperform" rating and set a $550.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Sanford C. Bernstein set a $660.00 price objective on Microsoft in a research note on Monday, August 10th. Finally, Evercore set a $528.00 target price on Microsoft in a report on Thursday, July 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $560.27.

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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