Deltec Asset Management LLC Lowers Position in Microsoft Corporation $MSFT

Key Points

• Deltec Asset Management cut its Microsoft stake by 19.5% in the first quarter, selling 13,864 shares and leaving it with 57,361 shares valued at about $21.2 million.
• Several analysts remain constructive on Microsoft, with many rating the stock a Buy and MarketBeat showing a consensus target of $559.84 despite some recent target cuts.
• Microsoft reported strong quarterly results, beating expectations on both earnings and revenue, while also announcing a quarterly dividend of $0.91 per share.

Deltec Asset Management LLC trimmed its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 19.5% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 57,361 shares of the software giant's stock after selling 13,864 shares during the quarter. Microsoft accounts for 3.9% of Deltec Asset Management LLC's portfolio, making the stock its 5th largest position. Deltec Asset Management LLC's holdings in Microsoft were worth $21,233,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC increased its stake in Microsoft by 51.3% in the second 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 during the period. Bernzott Capital Advisors acquired a new position in Microsoft in the fourth quarter worth about $34,000. Timmons Wealth Management LLC bought a new position in Microsoft during the fourth quarter worth about $36,000. Fairway Wealth LLC boosted its holdings in Microsoft by 287.0% during the fourth 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 acquired a new stake in Microsoft during the fourth quarter valued at approximately $44,000. 71.13% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MSFT. Arete Research increased their target price on Microsoft from $730.00 to $870.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. DZ Bank reaffirmed a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. President Capital upped their price target on Microsoft from $500.00 to $520.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. China Renaissance dropped their price objective on Microsoft from $630.00 to $550.00 and set a "buy" rating for the company in a research note on Monday, May 4th. Finally, Barclays reissued an "overweight" rating on shares of Microsoft in a report on Wednesday, June 3rd. Forty-one analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $559.84.

Insiders Place Their Bets

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the company's stock in a transaction 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 completion of the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $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 accessible through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction 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 in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 23,762 shares of company stock valued at $10,508,361. Company insiders own 0.03% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Argus lowered its price target on Microsoft but kept a buy rating, still implying roughly 32% upside from current levels. Benzinga / The Fly report on Argus price target cut
• Positive Sentiment: Analysts and market commentary continue to point to Microsoft’s AI and Azure buildout as a long-term driver, with one piece arguing that AI data centers are effectively “pre-sold,” suggesting strong demand for Microsoft’s infrastructure spending. Article on AI spending returns
• Positive Sentiment: Microsoft’s recent earnings showed the company beat expectations on both revenue and EPS, reinforcing that the core business remains healthy despite the stock’s weak price action.
• Neutral Sentiment: Microsoft’s Xbox/gaming unit is facing restructuring under Asha Sharma, including layoffs and tough decisions about studio strategy, which adds uncertainty but could improve efficiency over time. FT article on Xbox changes
• Neutral Sentiment: The Federal Reserve named Xbox CEO Asha Sharma to a jobs-and-productivity task force, keeping Microsoft in the policy conversation around AI and labor, but with no immediate financial impact. Yahoo Finance report on Fed task force
• Negative Sentiment: Multiple law firms issued notices about a securities fraud class action tied to alleged AI/Copilot misrepresentations, increasing headline risk and investor caution. PR Newswire lawsuit notice
• Negative Sentiment: Reports that Starbucks is building internal AI to replace some Microsoft software underscore a broader threat: customers may use AI to reduce reliance on Microsoft’s enterprise products, which could pressure future software revenue. MarketBeat Starbucks AI cost-cutting article
• Negative Sentiment: Microsoft’s AI expansion is also drawing criticism over rising emissions and heavy capital spending, feeding worries that the company is paying more for growth while investors question the payback period. TechXplore emissions report

Microsoft Stock Performance

Microsoft stock opened at $385.10 on Monday. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $555.45. The company has a market cap of $2.86 trillion, a PE ratio of 22.92, a PEG ratio of 1.21 and a beta of 1.13. The company's 50-day moving average is $402.33 and its two-hundred day moving average is $414.08.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, topping the consensus estimate of $4.06 by $0.21. The company had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. Microsoft's revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.46 EPS. Equities 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. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft's payout ratio is currently 21.67%.

Microsoft 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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