Lyell Wealth Management LP Acquires 5,036 Shares of Microsoft Corporation $MSFT

Key Points

• Lyell Wealth Management LP increased its Microsoft stake by 5.8% in the fourth quarter, buying 5,036 additional shares and bringing its total holding to 92,149 shares valued at about $44.6 million.
• Microsoft’s latest quarter topped expectations, with EPS of $4.27 versus $4.06 expected and revenue of $82.89 billion, up 18.3% from a year earlier. Analysts still expect the company to earn 16.76 EPS for the current fiscal year.
• The company also announced a quarterly dividend of $0.91 per share, while sentiment remains mixed due to bullish AI-related optimism and ongoing concerns about Xbox layoffs, Azure job cuts in China, and heavy AI data-center spending.

Lyell Wealth Management LP grew its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.8% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 92,149 shares of the software giant's stock after purchasing an additional 5,036 shares during the quarter. Microsoft comprises 3.2% of Lyell Wealth Management LP's portfolio, making the stock its 4th biggest holding. Lyell Wealth Management LP's holdings in Microsoft were worth $44,565,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC lifted its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after purchasing an additional 20 shares during the period. Bernzott Capital Advisors bought a new position in Microsoft during the fourth quarter worth about $34,000. Fairway Wealth LLC lifted its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after purchasing an additional 66 shares during the period. Sellwood Investment Partners LLC bought a new position in Microsoft during the third quarter worth about $49,000. Finally, University of Illinois Foundation bought a new position in Microsoft during the second quarter worth about $50,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Stock Performance

NASDAQ:MSFT opened at $390.34 on Friday. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45. The firm has a 50 day moving average of $410.65 and a 200-day moving average of $429.22. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $2.90 trillion, a P/E ratio of 23.23, a price-to-earnings-growth ratio of 1.43 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 (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 company had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. During the same quarter in the previous year, the company posted $3.46 earnings per share. Microsoft's quarterly revenue was up 18.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft's payout ratio is 21.67%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Several commentators remain bullish on Microsoft’s long-term AI outlook, arguing the stock looks attractive after the recent pullback and that Copilot/agentic AI could still drive upside. Microsoft Remains A Generational Buying Opportunity In The Agentic AI Era
• Positive Sentiment: Microsoft continues to win AI-infrastructure-related business, including a new 260 MW solar supply deal that supports its data-center and cloud expansion needs. MN8 Energy Delivers 260 MW of Solar to Microsoft Across Two U.S. Power Markets
• Positive Sentiment: The company also announced a quarterly dividend of $0.91 per share, reinforcing Microsoft’s cash-generation strength and shareholder-return profile. Microsoft announces quarterly dividend
• Neutral Sentiment: Satya Nadella’s comments on using the right AI model for the right task highlight Microsoft’s push for AI efficiency, but also signal growing attention to AI compute costs. Satya Nadella Warns Against AI Overuse
• Neutral Sentiment: Microsoft limiting employee use of Anthropic’s Claude Fable 5 over data-retention concerns underscores tighter AI governance, though the direct financial impact appears limited. Microsoft limits employee use of Anthropic's Claude Fable 5
• Negative Sentiment: Reports that Xbox is preparing major layoffs and budget cuts are pressuring sentiment, as they point to restructuring and weaker confidence in the gaming segment. Microsoft's Xbox plans for major layoffs next month
• Negative Sentiment: News that Microsoft is cutting jobs in its Azure unit in China adds to concerns about geopolitical friction and near-term cloud execution. Microsoft lays off hundreds from Azure unit in China
• Negative Sentiment: Broader commentary that AI data-center spending may be facing a reality check is weighing on the market’s enthusiasm for Microsoft’s heavy AI capex plans. Wall Street's $800 Billion AI Data Center Bet Is Showing Cracks

Insider Buying and Selling

In related news, EVP Takeshi Numoto sold 2,500 shares of the business's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $412.45, for a total value of $1,031,125.00. Following the completion of the transaction, the executive vice president owned 51,968 shares in the company, valued at $21,434,201.60. The trade was a 4.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction 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 trade represents a 2.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 19,262 shares of company stock worth $8,695,581 in the last quarter. Insiders own 0.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have commented on MSFT. DZ Bank restated a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Phillip Securities upgraded shares of Microsoft to a "buy" rating and set a $485.00 price target for the company in a research note on Wednesday, May 13th. BMO Capital Markets cut their price target on shares of Microsoft from $575.00 to $505.00 and set an "outperform" rating for the company in a research note on Tuesday, April 28th. Royal Bank Of Canada restated a "buy" rating on shares of Microsoft in a research note on Friday, May 22nd. Finally, BNP Paribas Exane cut their price target on shares of Microsoft from $556.00 to $555.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. Forty-one equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $561.20.

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).

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.