HighRoad Wealth Advisors LLC Makes New Investment in Microsoft Corporation $MSFT

Key Points

• HighRoad Wealth Advisors opened a new position in Microsoft in the fourth quarter, buying 1,962 shares worth about $949,000. Microsoft now makes up about 0.9% of the firm’s portfolio and is its 12th-largest holding.
• Microsoft’s latest earnings beat expectations, with $4.27 EPS on $82.89 billion in revenue, while revenue rose 18.3% year over year. The company also continues to show strong profitability, with a net margin of 39.34% and return on equity of 31.94%.
• Investor focus remains on Microsoft’s AI and OpenAI relationship: commentary continues to view the stock as an AI winner, but reports that OpenAI capped Microsoft’s revenue-sharing at $38 billion through 2030 may limit some upside expectations. Legal and governance headlines tied to the Musk v. Altman trial are also keeping the stock in the spotlight.

HighRoad Wealth Advisors LLC acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 1,962 shares of the software giant's stock, valued at approximately $949,000. Microsoft accounts for approximately 0.9% of HighRoad Wealth Advisors LLC's holdings, making the stock its 12th largest holding.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Longfellow Investment Management Co. LLC increased its holdings in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after purchasing an additional 20 shares during the period. Bayforest Capital Ltd acquired a new position in shares of Microsoft in the 3rd quarter valued at about $38,000. Sellwood Investment Partners LLC acquired a new position in shares of Microsoft in the 3rd quarter valued at about $49,000. University of Illinois Foundation acquired a new position in shares of Microsoft in the 2nd quarter valued at about $50,000. Finally, Daytona Street Capital LLC acquired a new position in shares of Microsoft in the 4th quarter valued at about $50,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft remains a long-term AI winner, with several notes saying the stock still looks undervalued and that its AI/Cloud thesis remains intact. Microsoft’s (MSFT) Q3 Revealed 3 Things that Matter for the AI Bull Case
• Positive Sentiment: Microsoft CEO Satya Nadella’s testimony in the Musk v. Altman trial reinforced Microsoft’s early backing of OpenAI and its expected payoff from that investment, which some investors view as supportive of the company’s AI strategy. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Positive Sentiment: OpenAI reportedly capped revenue-sharing payments to Microsoft at $38 billion through 2030, which may be read as a structural clarification that still preserves a major economic relationship while supporting OpenAI’s IPO path. Microsoft secures structural wins in OpenAI revenue cap deal, Wedbush says
• Neutral Sentiment: Microsoft was mentioned in broader AI-market commentary about whether AI spending is generating enough ROI, which adds to sentiment volatility but does not directly change fundamentals. Chamath Warns Companies Must Prove ROI from AI Within ‘500 Days’
• Neutral Sentiment: Several reports focused on Microsoft’s role in OpenAI’s founding and governance in the Musk lawsuit; these headlines keep the stock in the news, but the market impact is mostly indirect unless they lead to regulatory or contractual changes. How Much Power Did Microsoft Have Over OpenAI?
• Negative Sentiment: The biggest near-term overhang is the perception that Microsoft may have less upside from OpenAI than previously assumed, after reports that revenue-sharing is capped far below earlier projections. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Negative Sentiment: Nadella’s testimony in the Musk trial also highlighted how closely Microsoft is tied to OpenAI’s governance fight, keeping legal and reputational risks in focus for investors. Microsoft CEO Satya Nadella takes stand in Musk v. Altman trial

Microsoft Price Performance

Shares of Microsoft stock opened at $407.77 on Wednesday. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. Microsoft Corporation has a fifty-two week low of $356.28 and a fifty-two week high of $555.45. The firm has a fifty day moving average price of $397.60 and a two-hundred day moving average price of $443.14. The company has a market cap of $3.03 trillion, a PE ratio of 24.27, a price-to-earnings-growth ratio of 1.49 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its 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 firm had revenue of $82.89 billion during 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%.Microsoft's quarterly revenue was up 18.3% compared to the same quarter last year. During the same period last year, the business earned $3.46 earnings per share. Analysts expect that Microsoft Corporation will post 16.76 EPS for the current year.

Microsoft Dividend Announcement

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

Analysts Set New Price Targets

A number of brokerages have recently weighed in on MSFT. Daiwa Securities Group dropped their target price on Microsoft from $630.00 to $600.00 and set a "buy" rating on the stock in a report on Wednesday, February 4th. Truist Financial dropped their target price on Microsoft from $675.00 to $575.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. BNP Paribas Exane dropped their target price on Microsoft from $556.00 to $555.00 and set an "outperform" rating on the stock in a report on Friday, May 1st. JPMorgan Chase & Co. lowered their price target on Microsoft from $575.00 to $550.00 and set an "overweight" rating for the company in a research note on Thursday, January 29th. Finally, KeyCorp lowered their price target on Microsoft from $630.00 to $600.00 and set an "overweight" rating for the company in a research note on Thursday, January 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, Microsoft presently has an average rating of "Moderate Buy" and an average price target of $562.69.

Insiders Place Their Bets

In other Microsoft news, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction on Friday, March 6th. The stock was sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of 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 legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John W. Stanton acquired 5,000 shares of the business's stock in a transaction on Wednesday, February 18th. The shares were bought at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares of the company's stock, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their position. The SEC filing for this purchase provides additional information. 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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