JM2 Capital Inc. Makes New $5.41 Million Investment in Microsoft Corporation $MSFT

Key Points

• JM2 Capital acquired 11,191 shares of Microsoft in Q4, a new position valued at approximately $5.41 million, representing about 4.4% of JM2's holdings and its fourth-largest position.
• Microsoft beat expectations in the quarter with $4.27 EPS vs. $4.06 expected and revenue of $82.89 billion (up 18.3% YoY), showing strong profitability (net margin 39.34%, ROE 31.94%).
• The company declared a quarterly dividend of $0.91 (annualized $3.64, ~0.9% yield; ex-dividend May 21), and analysts remain broadly positive with a consensus "Moderate Buy" and an average target near $556 despite concerns about elevated AI-related capex.

JM2 Capital Inc. acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 11,191 shares of the software giant's stock, valued at approximately $5,412,000. Microsoft makes up approximately 4.4% of JM2 Capital Inc.'s holdings, making the stock its 4th largest position.

Other large investors have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of Microsoft by 1.1% in the 1st quarter. Vanguard Group Inc. now owns 691,386,214 shares of the software giant's stock valued at $259,539,471,000 after purchasing an additional 7,314,509 shares in the last quarter. State Street Corp boosted its stake in shares of Microsoft by 1.1% in the 2nd quarter. State Street Corp now owns 299,196,519 shares of the software giant's stock valued at $148,823,341,000 after purchasing an additional 3,166,275 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Microsoft by 2.0% in the 2nd quarter. Geode Capital Management LLC now owns 179,001,751 shares of the software giant's stock valued at $88,714,256,000 after purchasing an additional 3,532,054 shares in the last quarter. Norges Bank acquired a new stake in shares of Microsoft in the 2nd quarter valued at approximately $50,493,678,000. Finally, Northern Trust Corp boosted its stake in shares of Microsoft by 16.1% in the 4th quarter. Northern Trust Corp now owns 83,787,746 shares of the software giant's stock valued at $35,316,535,000 after purchasing an additional 11,600,470 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Up 1.6%

Shares of NASDAQ MSFT opened at $414.41 on Friday. The company has a 50 day simple moving average of $395.28 and a 200 day simple moving average of $447.91. The firm has a market cap of $3.08 trillion, a PE ratio of 24.67, a price-to-earnings-growth ratio of 1.56 and a beta of 1.10. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.38.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analyst estimates of $81.44 billion. During the same quarter last year, the business earned $3.46 EPS. The firm's quarterly revenue was up 18.3% on a year-over-year basis. On average, research analysts forecast that Microsoft Corporation will post 16.68 EPS for the current year.

Microsoft Announces Dividend

The company also recently declared 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 is Thursday, May 21st. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft's dividend payout ratio (DPR) is presently 21.67%.

Insider Activity at Microsoft

In other Microsoft 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 completion of the transaction, the executive vice president owned 137,933 shares in the company, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John W. Stanton purchased 5,000 shares of the stock in a transaction on Wednesday, February 18th. The shares were purchased at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the acquisition, the director owned 83,905 shares in the company, valued at approximately $33,339,651.75. The trade was 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.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 results and the earnings call highlighted 40%+ Azure/cloud growth and accelerating AI monetization, giving investors confidence in the company’s long-term AI revenue runway. Microsoft Earnings Call: AI Growth Surges, Margins Squeezed
• Positive Sentiment: The U.S. Pentagon signed agreements allowing Microsoft’s AI tech on classified networks — a credibility and contract win that can translate into long-term, high‑value government revenue. Pentagon inks deals with Nvidia, Microsoft and AWS to deploy AI on classified networks
• Positive Sentiment: Analyst actions include several price‑target raises and reaffirmations (Benchmark raised to $525, others keep buy ratings), signaling continued bullish conviction among some buy‑side firms. Microsoft Corp. (MSFT) Price Target Increased to $525 by Benchmark
• Positive Sentiment: Product catalyst: rollout of Windows 11’s new Xbox Mode supports consumer engagement and adds a near‑term, tangible product story for the stock. Microsoft Stock (MSFT) Jumps on Windows 11 Xbox Mode Rollout
• Neutral Sentiment: The revised Microsoft–OpenAI relationship (ending exclusivity) is being parsed by markets: it reduces some exclusivity upside but clarifies commercial terms that could be neutral-to-positive longer term depending on monetization. Microsoft and OpenAI Just Ended Their Exclusive Deal, and Wall Street Is Trying Hard to Shake Off the Negatives for MSFT Stock
• Neutral Sentiment: Commentary from TV/hosts (e.g., Jim Cramer) describes MSFT as attractively valued but notes limited new messaging on the call — this shapes retail sentiment but isn’t new fundamental data. Jim Cramer on Microsoft: “Maybe You Can Consider It Cheap, But It’s Software”
• Negative Sentiment: Investors remain focused on record capex (roughly $190B guidance) and the near‑term hit to free cash flow — that spending narrative caused the post‑earnings pullback and continues to cap the multiple. Beat meets bill: MSFT stock slips on AI expenditure concerns despite strong Q3
• Negative Sentiment: Goldman’s note flagging extreme cloud cash burn and other outlets highlighting the industry’s rising AI capex raises concern that spending could pressure margins and returns if monetization lags. Microsoft, Amazon On Watch ― Goldman Sounds Alarm On 90% Cloud Cash Burn
• Negative Sentiment: Some brokers trimmed price targets or cut upside on valuation as they bake in capex risk (HSBC cut its target), keeping a portion of the market cautious. HSBC Cuts Microsoft Price Target to $571 From $593

Analysts Set New Price Targets

A number of research firms have recently weighed in on MSFT. President Capital raised their price target on shares of Microsoft from $500.00 to $520.00 and gave the company a "buy" rating in a research note on Thursday. Rothschild & Co Redburn reduced their price target on shares of Microsoft from $450.00 to $400.00 and set a "neutral" rating on the stock in a research note on Thursday, April 23rd. Wells Fargo & Company raised their price objective on shares of Microsoft from $615.00 to $625.00 and gave the company an "overweight" rating in a report on Thursday. Citigroup raised their price objective on shares of Microsoft from $600.00 to $620.00 and gave the company a "buy" rating in a report on Thursday. Finally, BMO Capital Markets dropped their price objective on shares of Microsoft from $575.00 to $505.00 and set an "outperform" rating for the company in a report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Microsoft has a consensus rating of "Moderate Buy" and an average target price of $556.15.

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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