Microsoft Corporation $MSFT is Cypress Funds LLC's 2nd Largest Position

Key Points

• Cypress Funds LLC cut its Microsoft stake by 20% in Q4 to 158,203 shares, making MSFT its second-largest holding at roughly 12.7% of the fund and valued at about $76.51 million.
• Microsoft beat recent quarterly estimates (EPS $4.14 vs. $3.86; revenue $81.27B, +16.7% YoY) and is accelerating AI/cloud deployment—highlighted by an early live AI data center, a major Stellantis partnership and CFTC adoption of Copilot—though data‑center capacity delays and mixed analyst sentiment create near‑term risks.
• Analysts have a consensus rating of "Moderate Buy" with an average price target of $577.58 (majority Buy ratings), and Microsoft pays a quarterly dividend of $0.91 (annualized yield ~0.9%, ex-dividend May 21).

Cypress Funds LLC lowered its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 20.0% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 158,203 shares of the software giant's stock after selling 39,596 shares during the quarter. Microsoft comprises approximately 12.7% of Cypress Funds LLC's holdings, making the stock its 2nd largest holding. Cypress Funds LLC's holdings in Microsoft were worth $76,510,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of MSFT. Longfellow Investment Management Co. LLC grew its holdings in shares of 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 purchasing an additional 20 shares during the period. Bayforest Capital Ltd purchased a new stake in shares of Microsoft during the 3rd quarter worth about $38,000. LSV Asset Management purchased a new stake in shares of Microsoft during the 4th quarter worth about $44,000. Sellwood Investment Partners LLC purchased a new stake in shares of Microsoft during the 3rd quarter worth about $49,000. Finally, University of Illinois Foundation purchased a new position in Microsoft in the 2nd quarter worth approximately $50,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on MSFT shares. Stifel Nicolaus restated a "hold" rating and issued a $392.00 price target (down from $540.00) on shares of Microsoft in a report on Thursday, February 5th. Morgan Stanley restated an "overweight" rating on shares of Microsoft in a report on Thursday, January 29th. New Street Research upped their price target on Microsoft from $670.00 to $675.00 and gave the stock a "buy" rating in a report on Tuesday, March 31st. The Goldman Sachs Group restated a "buy" rating on shares of Microsoft in a report on Thursday, February 12th. Finally, William Blair restated an "outperform" rating on shares of Microsoft in a report on Monday, March 9th. Two analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Microsoft has an average rating of "Moderate Buy" and an average price target of $577.58.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Fairwater AI data center in Wisconsin went live ahead of schedule, a tangible execution win that eases near‑term capacity concerns and signals Microsoft is accelerating AI infrastructure deployment — a direct positive for Azure AI revenue prospects. Microsoft stock jumps as AI data center goes live
• Positive Sentiment: Large enterprise partnerships and marketplace integrations broaden Azure adoption: Stellantis signed a five‑year AI/cloud deal and Expert.ai’s EidenAI Suite is now on Azure Marketplace — both expand addressable enterprise demand for Microsoft’s cloud + Copilot stack. Stellantis, Microsoft sign five-year partnership Expert.ai and Microsoft Italy announce collaboration
• Positive Sentiment: Government and regulatory adoption — the CFTC is using Microsoft Copilot/AI tools for surveillance, a sign that public‑sector adoption of Microsoft AI products is rising and provides a durable revenue cohort. CFTC Uses Microsoft AI Tools
• Neutral Sentiment: Analyst moves are mixed: TD Cowen lowered its price target to $540 but kept a Buy rating (maintains bullish long‑term view despite trimming upside), while other firms have grown cautious — watch revisions for near‑term momentum. TD Cowen price target update
• Neutral Sentiment: Macro/earnings calendar: investors are watching fiscal Q3 results (Apr 29) for signs AI spend is translating into accelerating Azure revenue and Copilot monetization; near‑term volatility could persist into the print. Microsoft eyes AI execution, Azure growth
• Negative Sentiment: Industry capacity risk: Financial Times reports delays on a sizeable share of U.S. data‑center builds (affecting multiple players), underscoring supply‑chain and permitting risks that could constrain AI rollout timing and margin recovery. Data centre delays threaten to choke AI expansion
• Negative Sentiment: Bearish commentary and downside scenarios remain: some analysts and opinion pieces argue MSFT still faces near‑term growth/valuation risks (including calls for deeper corrections), so rallies could be met with profit‑taking until clearer proof of AI monetization appears. Microsoft: Don't Buy The Dip

Microsoft Stock Performance

Shares of MSFT opened at $422.79 on Friday. The business's 50 day moving average is $391.87 and its two-hundred day moving average is $454.48. Microsoft Corporation has a 52-week low of $355.67 and a 52-week high of $555.45. The firm has a market cap of $3.14 trillion, a price-to-earnings ratio of 26.44, a PEG ratio of 1.59 and a beta of 1.11. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its 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 return on equity of 32.34% and a net margin of 39.04%.The company had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. During the same period in the prior year, the company posted $3.23 EPS. Microsoft's quarterly revenue was up 16.7% on a year-over-year basis. Analysts forecast that Microsoft Corporation will post 13.08 EPS for the current fiscal year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be paid a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft's dividend payout ratio is 22.76%.

Insiders Place Their Bets

In related news, Director John W. Stanton acquired 5,000 shares of Microsoft stock in a transaction on Wednesday, February 18th. The shares were purchased at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the purchase, the director directly owned 83,905 shares of the company's stock, valued at $33,339,651.75. The trade was a 6.34% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the 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 transaction, the executive vice president owned 137,933 shares in the company, valued at $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.03% of the company's stock.

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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