Income Insurance Ltd Takes Position in Microsoft Corporation $MSFT

Key Points

• Income Insurance Ltd initiated a new position in Microsoft, buying 21,460 shares valued at about $10.4 million, making the stock its third-largest holding and about 6.7% of its portfolio.
• Microsoft reported strong quarterly results, with earnings per share of $4.27 and revenue of $82.89 billion, both ahead of analyst expectations; revenue also rose 18.3% year over year.
• The company remains broadly favored by Wall Street, with a Moderate Buy consensus and an average price target of $561.20, though recent insider selling and concerns about heavy AI spending may weigh on sentiment.

Income Insurance Ltd purchased a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 21,460 shares of the software giant's stock, valued at approximately $10,378,000. Microsoft makes up approximately 6.7% of Income Insurance Ltd's portfolio, making the stock its 3rd biggest position.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Altman Advisors Inc. increased its holdings in shares of Microsoft by 2.5% during the fourth quarter. Altman Advisors Inc. now owns 15,695 shares of the software giant's stock valued at $7,591,000 after acquiring an additional 390 shares in the last quarter. Ballast Rock Private Wealth LLC bought a new position in shares of Microsoft during the fourth quarter valued at $3,788,000. Bryn Mawr Trust Advisors LLC increased its holdings in shares of Microsoft by 0.6% during the fourth quarter. Bryn Mawr Trust Advisors LLC now owns 175,515 shares of the software giant's stock valued at $84,883,000 after acquiring an additional 1,131 shares in the last quarter. Garrett Wealth Advisory Group LLC increased its holdings in shares of Microsoft by 12.2% during the fourth quarter. Garrett Wealth Advisory Group LLC now owns 6,615 shares of the software giant's stock valued at $3,199,000 after acquiring an additional 718 shares in the last quarter. Finally, Nan Fung Trinity HK Ltd. increased its holdings in shares of Microsoft by 49.8% during the fourth quarter. Nan Fung Trinity HK Ltd. now owns 65,192 shares of the software giant's stock valued at $31,528,000 after acquiring an additional 21,680 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Microsoft Stock Down 3.2%

MSFT stock opened at $427.34 on Thursday. Microsoft Corporation has a fifty-two week low of $356.28 and a fifty-two week high of $555.45. The business's 50-day moving average is $405.61 and its two-hundred day moving average is $432.76. 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 company has a market cap of $3.17 trillion, a price-to-earnings ratio of 25.44, a P/E/G ratio of 1.59 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating 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 company had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.44 billion. During the same quarter in the prior year, the company earned $3.46 earnings per share. Microsoft's revenue was up 18.3% on a year-over-year basis. As a group, analysts forecast that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

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

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s Build announcements suggest it is broadening its AI platform with proprietary models and agentic tools, which could reduce reliance on OpenAI and improve margins over time.
• Positive Sentiment: New partnerships and integrations with Nvidia, healthcare groups like Mayo Clinic, and third-party enterprise tools expand Microsoft’s ecosystem and may support future cloud demand.
• Positive Sentiment: Analyst and investor commentary remains constructive, with several reports arguing that Microsoft’s AI opportunity and Azure growth still look underappreciated. Article Title
• Neutral Sentiment: The company’s quantum-computing update and AI infrastructure ambitions are long-term catalysts, but they are not expected to contribute meaningfully to near-term earnings. Article Title
• Negative Sentiment: Some investors appear to be taking profits after the Build rally and remain cautious about Microsoft’s heavy AI spending and execution risk.
• Negative Sentiment: Judson Althoff’s disclosed share sale may add to short-term sentiment pressure, even though the transaction was relatively small compared with his remaining holdings. Article Title

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Arete Research raised their price target on Microsoft from $730.00 to $870.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Piper Sandler reaffirmed an "overweight" rating on shares of Microsoft in a research report on Tuesday, May 26th. Phillip Securities raised Microsoft to a "buy" rating and set a $485.00 price objective on the stock in a research report on Wednesday, May 13th. Stifel Nicolaus increased their price objective on Microsoft from $392.00 to $415.00 and gave the company a "hold" rating in a research report on Thursday, April 30th. Finally, 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 report on Thursday, April 30th. Forty analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $561.20.

Insider Buying and Selling at Microsoft

In other Microsoft news, CEO Judson Althoff sold 15,500 shares of the 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 transaction, the chief executive officer owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the stock in a transaction dated Thursday, May 14th. The shares were 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 directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 29,083 shares of company stock valued at $12,710,152. 0.03% of the stock is 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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.