Microsoft Corporation $MSFT is Hendershot Investments Inc.'s 7th Largest Position

Key Points

• Hendershot Investments increased its Microsoft stake by 10.5% in the first quarter, bringing its holding to 71,058 shares valued at about $26.3 million. Microsoft is now the fund’s 7th largest position and makes up roughly 3.5% of its portfolio.
• Microsoft continues to attract major institutional support, with large investors like Vanguard, State Street, Geode Capital, and Morgan Stanley also adding to their positions. Overall, 71.13% of Microsoft’s shares are owned by hedge funds and other institutional investors.
• Wall Street remains broadly positive on Microsoft despite some price-target cuts: analysts currently show a Moderate Buy consensus with an average target price of $557.96. The company also recently beat quarterly expectations, reporting $4.27 EPS on $82.89 billion in revenue, up 18.3% year over year.

Hendershot Investments Inc. boosted its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 10.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 71,058 shares of the software giant's stock after acquiring an additional 6,767 shares during the quarter. Microsoft accounts for approximately 3.5% of Hendershot Investments Inc.'s portfolio, making the stock its 7th largest holding. Hendershot Investments Inc.'s holdings in Microsoft were worth $26,303,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in Microsoft by 2.3% in the fourth quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant's stock worth $347,211,391,000 after buying an additional 15,955,898 shares in the last quarter. State Street Corp grew its position in Microsoft by 2.1% during the fourth quarter. State Street Corp now owns 306,150,608 shares of the software giant's stock valued at $148,060,557,000 after acquiring an additional 6,388,930 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Microsoft by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant's stock worth $88,056,019,000 after acquiring an additional 1,911,142 shares in the last quarter. Morgan Stanley lifted its holdings in shares of Microsoft by 0.8% in the 4th quarter. Morgan Stanley now owns 121,220,561 shares of the software giant's stock worth $58,624,690,000 after acquiring an additional 980,439 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Microsoft in the 4th quarter worth approximately $50,664,631,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Robert W. Baird reduced their target price on shares of Microsoft from $540.00 to $500.00 and set an "outperform" rating on the stock in a report on Wednesday, April 15th. Piper Sandler reissued an "overweight" rating on shares of Microsoft in a research note on Tuesday, May 26th. Barclays restated an "overweight" rating on shares of Microsoft in a research report on Wednesday, June 3rd. Stifel Nicolaus reduced their price objective on Microsoft from $415.00 to $400.00 and set a "hold" rating on the stock in a research note on Thursday, June 25th. Finally, Dbs Bank decreased their price objective on Microsoft from $678.00 to $573.00 in a report on Thursday, May 7th. Forty-one research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, Microsoft presently has an average rating of "Moderate Buy" and a consensus target price of $557.96.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts remain broadly bullish ahead of Microsoft’s July 29 earnings report, with several firms still rating the stock Buy/Outperform even after trimming price targets. Microsoft Earnings Preview: Copilot, AI Spending and Margins Are in Focus
• Positive Sentiment: Microsoft is being viewed as a top AI vendor, and Citi highlighted it as one of the leading players in the space, reinforcing the company’s AI leadership narrative. Citi Finds Microsoft (MSFT) as One of the Top AI Vendors
• Positive Sentiment: Microsoft announced a strategic partnership with 3M to advance AI data center infrastructure and enterprise transformation, a sign of continued demand for its cloud and AI ecosystem. 3M and Microsoft announce strategic partnership to advance AI data center infrastructure and enterprise transformation
• Positive Sentiment: CEO Satya Nadella’s push to emphasize Microsoft’s in-house AI models and lower-cost enterprise offerings suggests a more aggressive competitive strategy versus OpenAI, Google, and Anthropic. Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic

Insider Buying and Selling

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the company'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 transaction, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 110,477 shares of the company's stock, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 over the last three months. Corporate insiders own 0.03% of the company's stock.

Microsoft Stock Performance

NASDAQ:MSFT opened at $401.10 on Friday. The stock has a market cap of $2.98 trillion, a P/E ratio of 23.88, a price-to-earnings-growth ratio of 1.20 and a beta of 1.13. The firm's fifty day simple moving average is $400.70 and its 200 day simple moving average is $411.43. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $555.45. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, topping 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 business had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. During the same period in the prior year, the business earned $3.46 EPS. The company's revenue for the quarter was up 18.3% on a year-over-year basis. As a group, research analysts predict that Microsoft Corporation will post 16.71 EPS for the current year.

Microsoft Dividend Announcement

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

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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