Cim LLC Cuts Stake in Microsoft Corporation $MSFT

Key Points

• Cim LLC reduced its Microsoft stake by 28.1% in the first quarter, selling 3,771 shares and retaining 9,653 shares valued at approximately $3.57 million. Institutional investors collectively own 71.13% of Microsoft.
• Microsoft reported quarterly revenue of $90.01 billion and EPS of $4.74, exceeding analyst estimates, while revenue grew 17.7% year over year. The company also announced a quarterly dividend of $0.91 per share, representing a 0.7% yield.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a $560.27 price target, though investors are concerned that heavy AI infrastructure spending could pressure free cash flow and cloud margins.

Cim LLC cut its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 28.1% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 9,653 shares of the software giant's stock after selling 3,771 shares during the quarter. Cim LLC's holdings in Microsoft were worth $3,573,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Longfellow Investment Management Co. LLC grew its holdings in shares of Microsoft by 51.3% during the second 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 last quarter. Bernzott Capital Advisors purchased a new position in Microsoft in the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC purchased a new stake in Microsoft during the 4th quarter valued at $36,000. Fairway Wealth LLC increased its holdings in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after purchasing an additional 66 shares in the last quarter. Finally, University of Illinois Foundation bought a new stake in shares of Microsoft in the 2nd quarter worth $50,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Stock Down 0.3%

Microsoft stock opened at $495.40 on Friday. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The stock has a fifty day moving average of $411.27 and a 200 day moving average of $408.50. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a market cap of $3.68 trillion, a PE ratio of 27.58, a price-to-earnings-growth ratio of 1.60 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the previous year, the company posted $3.65 EPS. The business's quarterly revenue was up 17.7% compared to the same quarter last year. As a group, sell-side analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.

Microsoft Dividend Announcement

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 given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft's payout ratio is 20.27%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts continue to highlight Microsoft’s Azure expansion, accelerating Microsoft 365 Copilot adoption, and the company’s ability to sustain double-digit earnings growth. Microsoft’s latest quarter also exceeded expectations, with revenue of approximately $90 billion and earnings growth supported by Azure. Microsoft’s Cloud Gains Can Sustain Double-Digit Earnings Growth
• Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing stronger Copilot demand and accelerating infrastructure investment. Other analysts remain bullish, with a six-month median target near $540, reinforcing investor confidence in Microsoft’s long-term AI positioning. JPMorgan Raises Microsoft Price Target
• Positive Sentiment: Microsoft is combining its consumer and enterprise Copilot applications into a unified platform, potentially improving distribution, user engagement, and monetization as it competes with ChatGPT, Gemini, and Claude. Microsoft Unifies Copilot Applications
• Neutral Sentiment: Microsoft approved the first AI data-center deployment under its $9.7 billion agreement with IREN, supporting Azure capacity expansion. The deal improves supply visibility but also underscores Microsoft’s substantial capital requirements. IREN Delivers First AI Cloud Deployment
• Negative Sentiment: Investors remain concerned that Microsoft’s roughly $175 billion AI infrastructure spending plan could pressure free cash flow and cloud margins. A reported decline in cloud gross margin and higher data-center, chip, electricity, and labor costs raise questions about how much of the company’s large AI backlog will translate into profit. Microsoft’s AI Backlog and Profitability Concerns
• Negative Sentiment: Reports that Microsoft has closed at least 15 China offices and joint ventures add geopolitical and operational uncertainty, although Azure reportedly provides a profitable reason to retain a limited China presence. Microsoft Retreats in China

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on MSFT shares. Scotiabank reaffirmed an "outperform" rating and set a $510.00 price target on shares of Microsoft in a report on Thursday, July 30th. BNP Paribas Exane reduced their price objective on Microsoft from $556.00 to $555.00 and set an "outperform" rating for the company in a report on Friday, May 1st. Jefferies Financial Group reissued a "buy" rating on shares of Microsoft in a research report on Monday, May 4th. Barclays lowered their target price on shares of Microsoft from $545.00 to $512.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Finally, Benchmark reaffirmed a "buy" rating on shares of Microsoft in a report on Friday, July 24th. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $560.27.

Insider Activity at Microsoft

In other news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction on 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 sale, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 37,310 shares of company stock valued at $17,256,219 over the last 90 days. 0.03% of the stock is currently owned by company insiders.

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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