Gerber Kawasaki Wealth & Investment Management Sells 1,472 Shares of Microsoft Corporation $MSFT

Key Points

• Gerber Kawasaki Wealth & Investment Management reduced its Microsoft stake by 1.1% in the fourth quarter, selling 1,472 shares and leaving it with 133,930 shares worth about $64.8 million.
• Microsoft continues to show strong operating results, reporting $4.27 EPS and $82.89 billion in quarterly revenue, both above analyst expectations, with revenue up 18.3% from a year earlier.
• Despite positive fundamentals and a quarterly dividend of $0.91 per share, sentiment is mixed as analysts remain broadly bullish while investors watch for potential headwinds from possible Xbox restructuring, layoffs, and AI-related spending pressures.

Gerber Kawasaki Wealth & Investment Management trimmed its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.1% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 133,930 shares of the software giant's stock after selling 1,472 shares during the quarter. Microsoft makes up about 2.2% of Gerber Kawasaki Wealth & Investment Management's portfolio, making the stock its 12th biggest holding. Gerber Kawasaki Wealth & Investment Management's holdings in Microsoft were worth $64,782,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently bought and sold shares of the company. WFA Asset Management Corp increased its holdings in shares of Microsoft by 27.0% during the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant's stock worth $427,000 after acquiring an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. increased its holdings in shares of Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant's stock worth $5,658,000 after acquiring an additional 38 shares during the last quarter. Discipline Wealth Solutions LLC increased its holdings in shares of Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant's stock worth $1,144,000 after acquiring an additional 2,138 shares during the last quarter. Wealth Group Ltd. increased its holdings in shares of Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant's stock worth $1,000,000 after acquiring an additional 28 shares during the last quarter. Finally, Eagle Capital Management LLC increased its holdings in shares of Microsoft by 0.4% during the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant's stock worth $9,735,000 after acquiring an additional 96 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the company's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares of the company's stock, valued at $18,922,874.02. This represents a 2.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction dated 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 directly owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 in the last 90 days. Corporate insiders own 0.03% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s broader AI and cloud story remains intact, with recent commentary highlighting strong Azure demand, continued Copilot momentum, and bullish analyst views that the stock is still attractive long term.
• Positive Sentiment: The company’s quarterly dividend of $0.91 per share reinforces Microsoft’s cash generation and shareholder-return profile.
• Neutral Sentiment: Satya Nadella’s comments about using AI more efficiently and Microsoft’s tighter controls on third-party AI tools like Anthropic’s Claude suggest a focus on governance and cost discipline rather than a direct business setback.
• Negative Sentiment: Reports that Microsoft is weighing a spinoff or restructuring of Xbox, along with expected layoffs and budget cuts, are the biggest near-term headwind and are likely weighing on sentiment around the stock.
• Negative Sentiment: Additional reports of job cuts in Microsoft’s Azure unit in China and broader worries about AI infrastructure spending are adding caution about near-term execution and profitability.

Microsoft Price Performance

Microsoft stock opened at $390.74 on Friday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. Microsoft Corporation has a 52 week low of $356.28 and a 52 week high of $555.45. The stock has a market capitalization of $2.90 trillion, a P/E ratio of 23.26, a price-to-earnings-growth ratio of 1.41 and a beta of 1.11. The stock has a fifty day moving average of $411.08 and a 200-day moving average of $428.95.

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. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. During the same quarter in the prior year, the firm earned $3.46 EPS. The business's revenue for the quarter was up 18.3% compared to the same quarter last year. On average, sell-side analysts expect that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The company 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 $0.91 dividend. 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 dividend payout ratio is presently 21.67%.

Analysts Set New Price Targets

A number of research firms recently weighed in on MSFT. William Blair reissued an "outperform" rating on shares of Microsoft in a report on Monday, March 9th. Wedbush restated an "outperform" rating and issued a $575.00 price target on shares of Microsoft in a research note on Wednesday, May 13th. New Street Research reduced their price target on Microsoft from $675.00 to $600.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. TD Cowen restated a "buy" rating and issued a $540.00 price target on shares of Microsoft in a research note on Thursday, June 4th. Finally, Evercore reduced their price target on Microsoft from $580.00 to $510.00 and set an "outperform" rating for the company in a research note on Thursday, April 30th. Forty-one equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $561.20.

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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