Microsoft Corporation $MSFT is Penobscot Investment Management Company Inc.'s 3rd Largest Position

Key Points

• Penobscot Investment Management slightly trimmed its Microsoft stake by 0.9% in the fourth quarter, but Microsoft remains its 3rd largest position at about 4.9% of the portfolio, worth $65.3 million.
• Microsoft’s business fundamentals remain strong, with the latest earnings beating expectations on both EPS and revenue, while revenue rose 18.3% year over year. Analysts continue to be broadly bullish, with a consensus rating of Moderate Buy.
• Recent news around the stock is mixed: Bill Ackman’s Pershing Square disclosed a new multibillion-dollar stake citing attractive valuation and AI/cloud growth, but Microsoft also faces a UK antitrust probe and LinkedIn announced 5% workforce cuts.

Penobscot Investment Management Company Inc. reduced its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 0.9% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 134,970 shares of the software giant's stock after selling 1,206 shares during the quarter. Microsoft makes up approximately 4.9% of Penobscot Investment Management Company Inc.'s investment portfolio, making the stock its 3rd largest position. Penobscot Investment Management Company Inc.'s holdings in Microsoft were worth $65,274,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC grew 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 valued at $29,000 after buying an additional 20 shares in the last quarter. Bayforest Capital Ltd acquired a new position in shares of Microsoft in the 3rd quarter valued at $38,000. Sellwood Investment Partners LLC acquired a new position in shares of Microsoft in the 3rd quarter valued at $49,000. University of Illinois Foundation acquired a new position in shares of Microsoft in the 2nd quarter valued at $50,000. Finally, Daytona Street Capital LLC acquired a new position in shares of Microsoft in the 4th quarter valued at $50,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bill Ackman revealed a new multi-billion-dollar stake in Microsoft (MSFT), saying the company looks attractively valued and highlighting Azure, Microsoft 365, and AI as key growth drivers. Reuters: Ackman's Pershing Square takes stake in Microsoft, citing 'compelling' valuation
• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft’s AI infrastructure, Azure growth, and OpenAI exposure could support further upside, with some seeing the stock’s weaker recent performance as a buying opportunity. TipRanks: Microsoft Buy Rating Reiterated as AI and Cloud Momentum Builds
• Neutral Sentiment: Microsoft also announced a board addition, appointing former EY chief Carmine Di Sibio to its board of directors, which is a governance update but not an immediate operating catalyst. PR Newswire: Microsoft announces appointment of Carmine Di Sibio to board of directors
• Negative Sentiment: The UK opened an antitrust probe into Microsoft’s business software and cloud practices, creating a potential regulatory overhang for the stock. Reuters: UK opens antitrust probe into Microsoft's business software
• Negative Sentiment: LinkedIn, a Microsoft-owned unit, announced 5% workforce cuts, reinforcing that the company is still trimming costs even as it ramps AI spending. Reuters: LinkedIn to lay off 5% of workforce amid tech industry cuts

Microsoft Price Performance

MSFT opened at $421.92 on Friday. The stock's 50-day moving average price is $398.18 and its 200 day moving average price is $441.39. Microsoft Corporation has a 12-month low of $356.28 and a 12-month high of $555.45. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The firm has a market cap of $3.13 trillion, a price-to-earnings ratio of 25.11, a PEG ratio of 1.47 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same quarter in the prior year, the company earned $3.46 EPS. Microsoft's revenue was up 18.3% on a year-over-year basis. As a group, sell-side analysts expect that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be paid a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft's dividend payout ratio is presently 21.67%.

Insider Activity

In related news, EVP Kathleen T. Hogan sold 12,321 shares of the 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 transaction, the executive vice president owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John W. Stanton purchased 5,000 shares of the business's stock in a transaction on Wednesday, February 18th. The shares were bought at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the acquisition, the director owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.03% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

MSFT has been the topic of several recent analyst reports. Guggenheim reaffirmed a "buy" rating and issued a $586.00 price target on shares of Microsoft in a research note on Thursday, April 30th. Bank of America initiated coverage on Microsoft in a research note on Tuesday, March 24th. They issued a "buy" rating and a $500.00 price target on the stock. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Microsoft in a research note on Monday, May 4th. Finally, UBS Group reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, April 24th. Thirty-nine research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $560.88.

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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