Microsoft Corporation $MSFT is ABN AMRO Bank N.V.'s 2nd Largest Position

Key Points

• ABN AMRO Bank N.V. cut its Microsoft stake by 8.1% in the first quarter, but Microsoft still remained its 2nd largest position. The bank held 1,641,168 shares valued at about $611.4 million.
• Microsoft is drawing attention for its AI push, including the launch of Microsoft Frontier Company with a $2.5 billion commitment and roughly 6,000 engineers and experts. Investors see this as a way to accelerate Azure and Copilot adoption and strengthen enterprise AI monetization.
• The stock is facing mixed signals: Microsoft recently beat quarterly earnings estimates, but sentiment is pressured by a sharp recent share-price drop, class-action litigation, and concerns about whether heavy AI spending will deliver enough returns.

ABN AMRO Bank N.V. reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 8.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,641,168 shares of the software giant's stock after selling 143,799 shares during the quarter. Microsoft makes up approximately 6.6% of ABN AMRO Bank N.V.'s portfolio, making the stock its 2nd largest position. ABN AMRO Bank N.V.'s holdings in Microsoft were worth $611,419,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC lifted its holdings in Microsoft by 51.3% in the 2nd 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 last quarter. Bernzott Capital Advisors acquired a new position in Microsoft during the fourth quarter valued at approximately $34,000. Timmons Wealth Management LLC acquired a new position in Microsoft during the fourth quarter valued at approximately $36,000. Fairway Wealth LLC lifted its stake in shares of Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after buying an additional 66 shares during the last quarter. Finally, University of Illinois Foundation bought a new stake in shares of Microsoft during the 2nd quarter worth $50,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft launched a new AI deployment business, Microsoft Frontier Company, backed by $2.5 billion and staffed with about 6,000 engineers and industry experts to help enterprises select, implement, and improve AI tools. Investors are viewing this as a way to accelerate Azure and Copilot adoption while monetizing the enterprise AI buildout. Microsoft launches its own AI deployment company with $2.5 billion commitment
• Positive Sentiment: Several articles highlighted Microsoft as a top AI and growth stock, while others said the market is rotating from semiconductors back toward software. That is helping sentiment around MSFT as investors look for higher-quality AI beneficiaries with recurring enterprise revenue. Microsoft launches firm to help companies adopt AI with $2.5 billion
• Neutral Sentiment: Microsoft is also reported to be overhauling Copilot to make its AI assistant more useful and easier to justify for customers. That could improve adoption, but it also underscores that AI products must now prove their value. Microsoft’s Copilot Reset Shows AI Tools Must Now Prove Their Worth
• Neutral Sentiment: There was also a new undersea cable partnership with Lightstorm to expand India-Southeast Asia connectivity, plus a report that enterprise customers continue to adopt Microsoft’s AI and cloud services. These are strategically helpful, but not immediate catalysts. Microsoft partners with Singapore's Lightstorm to build India-Southeast Asia undersea cable
• Negative Sentiment: Sentiment is still being held back by Microsoft’s weak recent stock performance, with articles noting its worst month in more than 25 years and renewed debate about whether the selloff is creating a buying opportunity. Microsoft Had Its Worst Month in More Than 25 Years. Should Investors Buy the Crash?
• Negative Sentiment: Microsoft is also facing class-action securities litigation over alleged misrepresentations during the class period, which adds a legal overhang and may keep some investors cautious. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Other reports said Microsoft may cut thousands of jobs and that investors are questioning whether its massive AI capital spending can generate enough returns. That uncertainty is weighing on the stock despite the company’s strong long-term fundamentals. Microsoft eyes another wave of layoffs that could hit 5,000 workers next week

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $390.49 on Monday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $555.45. The firm has a market cap of $2.90 trillion, a PE ratio of 23.24, a price-to-earnings-growth ratio of 1.22 and a beta of 1.13. 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 business has a fifty day moving average of $406.14 and a 200-day moving average of $417.46.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating the consensus estimate of $4.06 by $0.21. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The firm had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. During the same quarter last year, the company posted $3.46 EPS. The company's quarterly revenue was up 18.3% compared to the same quarter last year. On average, equities research analysts predict that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft's dividend payout ratio is currently 21.67%.

Analyst Ratings Changes

Several brokerages recently commented on MSFT. William Blair reiterated an "outperform" rating on shares of Microsoft in a report on Monday, March 9th. Bank of America initiated coverage on shares of Microsoft in a report on Tuesday, March 24th. They set a "buy" rating and a $500.00 price target for the company. Sanford C. Bernstein raised their price target on Microsoft from $641.00 to $646.00 and gave the company an "outperform" rating in a research report on Thursday, April 30th. Citizens Jmp assumed coverage on Microsoft in a research note on Monday, June 1st. They issued an "outperform" rating and a $550.00 price objective on the stock. Finally, Raymond James Financial downgraded Microsoft from a "market perform" rating to a "market perform" rating in a research note on Tuesday, May 5th. Forty-one research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $560.86.

Insiders Place Their Bets

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of Microsoft 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 completion of the sale, the chief executive officer owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 23,762 shares of company stock valued at $10,508,361. 0.03% of the stock is currently owned by corporate 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).

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