DMKC Advisory Services LLC Reduces Holdings in Microsoft Corporation $MSFT

Key Points

• DMKC Advisory Services LLC cut its Microsoft stake by 13.8% in the fourth quarter, selling 2,405 shares and leaving it with 15,020 shares worth about $7.26 million.
• Despite some mixed sentiment around Microsoft’s heavy AI infrastructure spending, several recent headlines remain positive, highlighting strong AI demand, Copilot growth, and continued optimism from analysts and major investors.
• Microsoft reported better-than-expected quarterly results, with EPS of $4.27 and revenue of $82.89 billion, while analysts still largely rate the stock a Moderate Buy with an average target price of $560.88.

DMKC Advisory Services LLC reduced its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 13.8% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 15,020 shares of the software giant's stock after selling 2,405 shares during the period. Microsoft comprises 3.2% of DMKC Advisory Services LLC's holdings, making the stock its 6th largest position. DMKC Advisory Services LLC's holdings in Microsoft were worth $7,264,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of MSFT. Longfellow Investment Management Co. LLC boosted its stake in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares during the period. Bayforest Capital Ltd bought a new stake in Microsoft in the 3rd quarter valued at $38,000. Fairway Wealth LLC lifted its holdings in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares during the last quarter. Sellwood Investment Partners LLC acquired a new stake in Microsoft during the 3rd quarter valued at $49,000. Finally, University of Illinois Foundation bought a new position in Microsoft during the second quarter worth $50,000. Institutional investors own 71.13% of the company's stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: BNP Paribas sees significant upside potential for Microsoft, citing strong AI demand, more than 25 million expected paid Copilot seats, and Azure growth that could stay above 40%. Article Title
• Positive Sentiment: Bill Ackman’s Pershing Square has taken a large Microsoft position, which some investors view as a vote of confidence in the long-term AI thesis. Article Title
• Positive Sentiment: Analysts and market commentators continue to argue Microsoft remains a strong long-term AI beneficiary, with some saying recent weakness may be creating an attractive entry point. Article Title
• Neutral Sentiment: Microsoft’s recent earnings beat was solid, but the stock has remained weak since the post-earnings sell-off, suggesting investors are focused more on forward guidance and AI spending than last quarter’s results. Article Title
• Neutral Sentiment: Microsoft is also benefiting from broader AI ecosystem news, including new products and governance tools built around Microsoft Foundry, which supports the company’s enterprise AI platform narrative. Article Title
• Negative Sentiment: Several pieces question whether Microsoft’s AI infrastructure spending is becoming too costly, with criticism centered on “compute” expenses and possible margin pressure. Article Title
• Negative Sentiment: Microsoft was also the subject of a bearish Seeking Alpha note warning that its planned AI infrastructure spending could weigh on returns and valuation. Article Title
• Negative Sentiment: Some headlines highlight that major holders such as the Gates Foundation have exited Microsoft, adding to investor concern about shifting sentiment among large shareholders. Article Title

Analysts Set New Price Targets

Several research firms have commented on MSFT. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Microsoft from $575.00 to $550.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Wells Fargo & Company lifted their target price on shares of Microsoft from $615.00 to $625.00 and gave the stock an "overweight" rating in a report on Thursday, April 30th. DZ Bank reiterated a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. New Street Research lowered their price target on shares of Microsoft from $675.00 to $600.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Finally, Raymond James Financial downgraded shares of Microsoft from a "market perform" rating to a "market perform" rating in a research report on Tuesday, May 5th. Thirty-nine research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $560.88.

Microsoft Trading Down 0.6%

Shares of Microsoft stock opened at $416.03 on Wednesday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. The firm has a 50-day moving average of $400.12 and a 200-day moving average of $435.60. Microsoft Corporation has a 52-week low of $356.28 and a 52-week high of $555.45. The stock has a market cap of $3.09 trillion, a PE ratio of 24.76, a PEG ratio of 1.51 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, topping analysts' consensus estimates of $4.06 by $0.21. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The business had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same period last year, the firm earned $3.46 earnings per share. Microsoft's revenue for the quarter was up 18.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Microsoft Corporation will post 16.76 EPS for the current year.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft's dividend payout ratio is presently 21.67%.

Insider Activity at Microsoft

In other news, EVP Kathleen T. Hogan sold 12,321 shares of the firm's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the transaction, the executive vice president directly owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of Microsoft 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 completion of the sale, the executive vice president owned 46,003 shares of the company's stock, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.03% of the stock is currently owned by company insiders.

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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