Microsoft Corporation $MSFT is Independence Bank of Kentucky's 2nd Largest Position

Key Points

• Independence Bank of Kentucky increased its Microsoft stake 4.1% to 77,513 shares (worth $37.49M), making MSFT 4.7% of the bank's holdings and its 2nd largest position.
• Microsoft beat Q4 estimates with $4.14 EPS and $81.27B revenue (up 16.7% YoY), carries a $3.14T market cap, and holds a MarketBeat consensus rating of "Moderate Buy" with an average target of $577.58.
• Near‑term catalysts include an AI data center coming online and major enterprise/government AI deals that could boost Azure/Copilot revenue, but data‑center capacity risks and mixed analyst target trims present potential headwinds.

Independence Bank of Kentucky raised its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.1% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 77,513 shares of the software giant's stock after buying an additional 3,072 shares during the quarter. Microsoft comprises 4.7% of Independence Bank of Kentucky's holdings, making the stock its 2nd largest position. Independence Bank of Kentucky's holdings in Microsoft were worth $37,487,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC raised its stake in Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after buying an additional 20 shares during the last quarter. Bayforest Capital Ltd purchased a new position in shares of Microsoft in the third quarter worth about $38,000. LSV Asset Management purchased a new position in shares of Microsoft in the fourth quarter worth about $44,000. Sellwood Investment Partners LLC purchased a new position in shares of Microsoft in the third quarter worth about $49,000. Finally, University of Illinois Foundation purchased a new position in shares of Microsoft in the second quarter worth about $50,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Price Performance

Microsoft stock opened at $422.79 on Monday. The firm has a market cap of $3.14 trillion, a price-to-earnings ratio of 26.44, a price-to-earnings-growth ratio of 1.60 and a beta of 1.11. Microsoft Corporation has a 52 week low of $355.67 and a 52 week high of $555.45. The business's 50-day moving average price is $391.87 and its 200 day moving average price is $453.57. 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 posted its earnings results on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, topping the consensus estimate of $3.86 by $0.28. The firm had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.Microsoft's revenue for the quarter was up 16.7% compared to the same quarter last year. During the same period last year, the company earned $3.23 earnings per share. As a group, sell-side analysts anticipate that Microsoft Corporation will post 13.08 earnings per share for the current year.

Microsoft Dividend Announcement

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

Insider Activity

In related news, EVP Kathleen T. Hogan sold 12,321 shares of the firm's stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the sale, the executive vice president directly owned 137,933 shares of the company's stock, valued at $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John W. Stanton bought 5,000 shares of the company's stock in a transaction that occurred on Wednesday, February 18th. The shares were bought at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares of the company's stock, valued at $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.03% of the stock is owned by company insiders.

Trending Headlines about Microsoft

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

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on MSFT. Royal Bank Of Canada restated an "outperform" rating on shares of Microsoft in a research note on Monday, March 2nd. Evercore reduced their price objective on Microsoft from $640.00 to $580.00 and set an "outperform" rating for the company in a research note on Thursday, January 29th. DZ Bank restated a "buy" rating on shares of Microsoft in a research note on Thursday, January 29th. HSBC reduced their price objective on Microsoft from $667.00 to $588.00 and set a "buy" rating for the company in a research note on Thursday, January 29th. Finally, Wells Fargo & Company reduced their price objective on Microsoft from $630.00 to $615.00 and set an "overweight" rating for the company in a research note on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $577.58.

About Microsoft

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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