Clearstead Advisors LLC Increases Position in Microsoft Corporation $MSFT

Key Points

• Clearstead Advisors LLC increased its Microsoft stake by 5.3% in the fourth quarter, buying 16,516 additional shares. The fund now holds 329,664 shares valued at about $159.4 million, making Microsoft its sixth-largest position.
• Microsoft recently reported strong quarterly results, with EPS of $4.27 beating estimates and revenue of $82.89 billion also topping expectations. Revenue rose 18.3% year over year, and analysts now expect full-year EPS of 16.76.
• Analyst sentiment remains broadly positive, with 41 Buy ratings and a consensus rating of Moderate Buy. The consensus price target stands at $561.20, despite some recent target cuts from individual firms.

Clearstead Advisors LLC increased its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 329,664 shares of the software giant's stock after purchasing an additional 16,516 shares during the period. Microsoft accounts for 2.0% of Clearstead Advisors LLC's portfolio, making the stock its 6th largest position. Clearstead Advisors LLC's holdings in Microsoft were worth $159,432,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in the business. BLVD Private Wealth LLC raised its stake in Microsoft by 0.6% during the 3rd quarter. BLVD Private Wealth LLC now owns 3,169 shares of the software giant's stock valued at $1,641,000 after acquiring an additional 19 shares in the last quarter. Magnolia Capital Management Ltd. raised its stake in Microsoft by 0.3% during the 3rd quarter. Magnolia Capital Management Ltd. now owns 6,509 shares of the software giant's stock valued at $3,371,000 after acquiring an additional 20 shares in the last quarter. ARK & TLK Investments LLC raised its stake in Microsoft by 1.0% during the 3rd quarter. ARK & TLK Investments LLC now owns 1,935 shares of the software giant's stock valued at $1,002,000 after acquiring an additional 20 shares in the last quarter. Rochester Wealth Strategies LLC raised its stake in Microsoft by 2.9% during the 3rd quarter. Rochester Wealth Strategies LLC now owns 700 shares of the software giant's stock valued at $363,000 after acquiring an additional 20 shares in the last quarter. Finally, Longfellow Investment Management Co. LLC raised its stake in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after acquiring an additional 20 shares in the last quarter. Institutional investors own 71.13% of the company's stock.

Microsoft Stock Performance

Shares of NASDAQ MSFT opened at $411.74 on Tuesday. 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 has a market capitalization of $3.06 trillion, a price-to-earnings ratio of 24.51, a PEG ratio of 1.50 and a beta of 1.11. The stock's fifty day simple moving average is $408.54 and its 200 day simple moving average is $430.96. Microsoft Corporation has a 52-week low of $356.28 and a 52-week high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results 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 business had revenue of $82.89 billion for 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 quarterly revenue was up 18.3% on a year-over-year basis. During the same period in the previous year, the firm posted $3.46 EPS. As a group, sell-side analysts forecast that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several brokerages have weighed in on MSFT. Raymond James Financial downgraded Microsoft from a "market perform" rating to a "market perform" rating in a research note on Tuesday, May 5th. Truist Financial dropped their price objective on Microsoft from $675.00 to $575.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Benchmark reissued a "buy" rating and issued a $525.00 price objective (up from $450.00) on shares of Microsoft in a research note on Tuesday, April 28th. Citigroup assumed coverage on Microsoft in a research note on Monday, June 1st. They issued a "market outperform" rating on the stock. Finally, TD Cowen reissued a "buy" rating and issued a $540.00 price objective on shares of Microsoft in a research note on Thursday, June 4th. Forty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $561.20.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft unveiled its Majorana 2 quantum processor, reinforcing its long-term innovation pipeline and boosting optimism around its advanced computing ambitions. Microsoft Announces Majorana 2 Quantum Chip as Wedbush Calls It Another ‘Validation’ for the Industry
• Positive Sentiment: NHS England is rolling out Microsoft 365 Copilot to more than 500,000 staff, a large enterprise win that highlights demand for Microsoft’s AI tools and could expand recurring software revenue. NHS England accelerates AI adoption with Microsoft 365 Copilot to improve service delivery, reduce costs and create more time for care
• Positive Sentiment: Analysts continue to argue that Microsoft’s AI strategy and ecosystem strength support long-term upside, which may help limit downside on weakness. Microsoft’s AI Independence and Ecosystem Momentum Underpin Buy Rating; $620 Price Target Reaffirmed
• Neutral Sentiment: Commentary from investors and media continues to frame Microsoft as a strong AI and hyperscaler leader, but also notes ongoing debate about valuation and how much AI momentum is already priced in. Dryden Pence on GOOGL "Dominant" AI Position, META "Behind," MSFT Still Strong
• Negative Sentiment: Microsoft is investigating a hack of its open-source GitHub projects that injected password-stealing malware, which is a reputational and security concern for the company’s developer ecosystem. Microsoft's open source tools were hacked to steal passwords of AI developers
• Negative Sentiment: Reid Hoffman is leaving Microsoft’s board, and David Tepper reportedly cut most of Appaloosa’s Microsoft stake, adding to investor scrutiny around sentiment and governance. Reid Hoffman Exits Microsoft Board A Decade After LinkedIn Sale — Stock Has Soared 570%

Insiders Place Their Bets

In related news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value 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. The trade was a 2.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction on Monday, June 1st. The stock was 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 owned 110,477 shares in the company, 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 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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