Microsoft Corporation $MSFT Holdings Increased by Tokio Marine Asset Management Co. Ltd.

Key Points

• Tokio Marine Asset Management increased its Microsoft stake by 1.2% in the fourth quarter, adding 4,597 shares to reach 384,691 shares worth about $186 million. Microsoft is now its second-largest holding and makes up roughly 6.4% of its portfolio.
• Microsoft reported better-than-expected quarterly results, with EPS of $4.27 versus the $4.06 consensus and revenue of $82.89 billion versus $81.44 billion expected. Revenue rose 18.3% year over year, underscoring continued strength in the business.
• The company also declared a quarterly dividend of $0.91 per share, payable June 11, implying an annualized dividend of $3.64 and a yield of 0.9%. Meanwhile, analysts remain broadly bullish, with a consensus rating of Moderate Buy and an average price target of $562.69.

Tokio Marine Asset Management Co. Ltd. grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.2% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 384,691 shares of the software giant's stock after buying an additional 4,597 shares during the quarter. Microsoft accounts for approximately 6.4% of Tokio Marine Asset Management Co. Ltd.'s holdings, making the stock its 2nd biggest holding. Tokio Marine Asset Management Co. Ltd.'s holdings in Microsoft were worth $186,044,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in MSFT. IRON Financial LLC boosted its stake in shares of Microsoft by 23.2% during the third quarter. IRON Financial LLC now owns 6,510 shares of the software giant's stock valued at $3,372,000 after purchasing an additional 1,225 shares in the last quarter. PMG Family Office LLC purchased a new stake in Microsoft during the third quarter valued at approximately $828,000. Trifecta Capital Advisors LLC lifted its position in Microsoft by 2.3% during the third quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant's stock valued at $36,347,000 after acquiring an additional 1,572 shares during the last quarter. TD Waterhouse Canada Inc. lifted its position in Microsoft by 1.0% during the third quarter. TD Waterhouse Canada Inc. now owns 949,901 shares of the software giant's stock valued at $493,860,000 after acquiring an additional 9,700 shares during the last quarter. Finally, Weaver Capital Management LLC lifted its position in Microsoft by 14.0% during the third quarter. Weaver Capital Management LLC now owns 18,340 shares of the software giant's stock valued at $9,499,000 after acquiring an additional 2,247 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Trading Down 0.6%

NASDAQ MSFT opened at $412.66 on Tuesday. The company has a fifty day simple moving average of $397.30 and a two-hundred day simple moving average of $443.93. The stock has a market cap of $3.07 trillion, a P/E ratio of 24.56, a P/E/G ratio of 1.50 and a beta of 1.10. Microsoft Corporation has a 12-month low of $356.28 and a 12-month high of $555.45. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly 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. The business had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The business's quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter last year, the company posted $3.46 earnings per share. On average, analysts forecast that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Dividend Announcement

The business 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 $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 dividend yield of 0.9%. Microsoft's dividend payout ratio (DPR) is currently 21.67%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s CEO testified that the company supported OpenAI’s shift toward a for-profit structure, reinforcing the importance of Microsoft’s AI investment and the potential upside from its partnership with OpenAI. Microsoft's C.E.O. Intervened When OpenAI Fired Sam Altman, Musk's Lawyer Claims
• Positive Sentiment: Multiple reports emphasized Microsoft’s growing AI thesis, with analysts pointing to strong cloud growth, improving AI monetization, and continued long-term upside from enterprise demand. Microsoft’s (MSFT) Q3 Revealed 3 Things that Matter for the AI Bull Case
• Positive Sentiment: Some commentary argued Microsoft still looks undervalued based on free-cash-flow projections, even after higher capital spending, which can support the stock among long-term investors. Microsoft Stock Still Looks Undervalued Based on FCF Projections, Despite Higher Capex
• Neutral Sentiment: Market coverage continues to frame Microsoft as a major AI and cloud winner, but several articles are opinion pieces or commentary rather than new fundamental developments. Microsoft Stock Analysis: My Final Verdict
• Negative Sentiment: There was also some negative noise around Microsoft’s African data center delays and questions about AI and software disruption, which could add caution around execution and future growth assumptions. Microsoft's African data center falters on payment demands, Bloomberg News reports

Insiders Place Their Bets

In other Microsoft news, EVP Kathleen T. Hogan sold 12,321 shares of the firm's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the transaction, the executive vice president 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director John W. Stanton purchased 5,000 shares of the firm's stock in a transaction on Wednesday, February 18th. The stock was bought at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the acquisition, the director owned 83,905 shares of the company's stock, valued at approximately $33,339,651.75. The trade was a 6.34% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently commented on MSFT. DZ Bank reissued a "buy" rating on shares of Microsoft in a research report on Thursday, April 30th. Benchmark reissued a "buy" rating and set a $525.00 target price (up from $450.00) on shares of Microsoft in a research report on Tuesday, April 28th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Microsoft from $575.00 to $550.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Rothschild & Co Redburn decreased their target price on shares of Microsoft from $450.00 to $400.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. Finally, President Capital increased their target price on shares of Microsoft from $500.00 to $520.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $562.69.

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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