Microsoft Corporation $MSFT is Capricorn Fund Managers Ltd's 5th Largest Position

Key Points

• Capricorn Fund Managers Ltd raised its Microsoft stake by 5.2% in Q4 to 28,733 shares (about $13.9 million), making MSFT its fifth-largest holding at roughly 3.3% of the fund.
• Microsoft shows strong enterprise and AI momentum — OpenAI’s ChatGPT Images 2.0, large Azure/Copilot deals (e.g., Stellantis) and Accenture integrations underpin cloud/AI revenue upside, and Microsoft recently beat quarterly EPS and revenue expectations with analysts holding a Moderate Buy consensus (average target ~$576.66).
• Material risks remain, including a U.K. tribunal ordering Microsoft to face a ~£2.1B (~$2.8B) mass lawsuit over Windows Server licensing and investor scrutiny of heavy AI capital spending that could pressure near-term margins.

Capricorn Fund Managers Ltd lifted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 5.2% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 28,733 shares of the software giant's stock after purchasing an additional 1,415 shares during the quarter. Microsoft comprises about 3.3% of Capricorn Fund Managers Ltd's portfolio, making the stock its 5th largest holding. Capricorn Fund Managers Ltd's holdings in Microsoft were worth $13,896,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. BLVD Private Wealth LLC raised its position in Microsoft by 0.6% during the 3rd quarter. BLVD Private Wealth LLC now owns 3,169 shares of the software giant's stock worth $1,641,000 after buying an additional 19 shares during the last quarter. Longfellow Investment Management Co. LLC raised its position in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after buying an additional 20 shares during the last quarter. Magnolia Capital Management Ltd. raised its position in Microsoft by 0.3% during the 3rd quarter. Magnolia Capital Management Ltd. now owns 6,509 shares of the software giant's stock worth $3,371,000 after buying an additional 20 shares during the last quarter. ARK & TLK Investments LLC raised its position in Microsoft by 1.0% during the 3rd quarter. ARK & TLK Investments LLC now owns 1,935 shares of the software giant's stock worth $1,002,000 after buying an additional 20 shares during the last quarter. Finally, Rochester Wealth Strategies LLC raised its position in Microsoft by 2.9% during the 3rd quarter. Rochester Wealth Strategies LLC now owns 700 shares of the software giant's stock worth $363,000 after buying an additional 20 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: OpenAI (backed by Microsoft) launched ChatGPT Images 2.0 — improvements to OpenAI’s image capabilities strengthen the product ecosystem that Microsoft leverages via its OpenAI partnership and Azure hosting, supporting longer-term AI revenue opportunities. OpenAI Launches ChatGPT Images 2.0 – Here’s What You Need to KnowArticle
• Positive Sentiment: Large enterprise deals deepen Azure and Microsoft 365 Copilot adoption — a five-year collaboration with Stellantis and industrial showcases at Hannover Messe (and Accenture partnerships) signal expanding, sticky enterprise AI workflows that drive cloud consumption and services revenue. Microsoft Deepens Industrial AI Role With Stellantis And Hannover Messe DealsArticle
• Positive Sentiment: Accenture’s agentic factory system debuts with Microsoft integrations — another indicator of enterprise traction for Azure-based AI platforms and professional services monetization. Accenture's New Agentic Factory System Debuts With MicrosoftArticle
• Neutral Sentiment: Investor chatter and analysts expect a rebound into earnings: social-media buzz and many buy ratings highlight Azure growth and AI backlog optimism ahead of Microsoft’s April 29 report — but the stock has drawn intense debate about valuation and execution. Microsoft Stock (MSFT) Opinions on Rebound Ahead of EarningsArticle
• Neutral Sentiment: Xbox Game Pass price cut — the new Xbox leadership is trimming subscription prices to boost engagement; could lift user growth and retention but may compress near-term gaming revenue/margins. Microsoft cuts Game Pass subscription prices after new Xbox CEO promises to 'recommit' to gamersArticle
• Neutral Sentiment: Citigroup trimmed its MSFT price target from $635 to $600 but kept a buy rating — a reminder that analyst targets are being adjusted while consensus remains constructive (median targets still well above current levels). Finviz — Citigroup price target noteArticle
• Negative Sentiment: U.K. tribunal ruled Microsoft must face a £2.1B (~$2.8B) mass lawsuit alleging overcharging for Windows Server licenses on rival clouds — a sizeable litigation risk that could lead to material settlements and heightened regulatory/legal scrutiny. Microsoft must face $2.8 billion UK lawsuit over cloud computing licencesArticle
• Negative Sentiment: Analysis piece flags scrutiny of Microsoft’s AI investments and capital intensity — investors may worry about the pace, returns and governance of large AI capex and partnerships, which can pressure near-term margins and share performance. Microsoft AI Investments Face ScrutinyArticle

Insiders Place Their Bets

In related news, Director John W. Stanton purchased 5,000 shares of the company's stock in a transaction that occurred 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 purchase, the director owned 83,905 shares of the company's stock, valued at $33,339,651.75. The trade was a 6.34% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction 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 sale, the executive vice president directly owned 137,933 shares in the company, valued at $56,486,322.16. This represents a 8.20% decrease in their position. The SEC filing for this sale provides additional information. 0.03% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. DZ Bank reissued a "buy" rating on shares of Microsoft in a research report on Thursday, January 29th. Stifel Nicolaus reissued a "hold" rating and set a $392.00 price target (down from $540.00) on shares of Microsoft in a research report on Thursday, February 5th. BNP Paribas Exane cut their target price on shares of Microsoft from $659.00 to $556.00 and set an "outperform" rating for the company in a report on Friday, April 10th. Wedbush cut their target price on shares of Microsoft from $625.00 to $575.00 and set an "outperform" rating for the company in a report on Thursday, January 29th. Finally, Mizuho cut their target price on shares of Microsoft from $620.00 to $515.00 and set an "outperform" rating for the company in a report on Tuesday, April 14th. Two analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $576.66.

Microsoft Price Performance

Microsoft stock opened at $424.16 on Wednesday. The company's fifty day moving average price is $392.16 and its 200 day moving average price is $452.23. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45. The stock has a market capitalization of $3.15 trillion, a P/E ratio of 26.53, a P/E/G ratio of 1.58 and a beta of 1.11. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The firm had revenue of $81.27 billion for the quarter, compared to analysts' expectations of $80.28 billion. During the same quarter last year, the company earned $3.23 EPS. The firm's revenue for the quarter was up 16.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Microsoft Corporation will post 16.54 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be paid 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 (DPR) is currently 22.76%.

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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