Microsoft Corporation $MSFT is PKO Investment Management Joint Stock Co's 4th Largest Position

Key Points

• PKO Investment Management trimmed its Microsoft stake by 11.6% in the first quarter, but MSFT remains its 4th-largest holding at 3.1% of the portfolio, worth about $36.6 million.
• Microsoft reported strong fiscal Q3 earnings, beating estimates with $4.27 EPS and $82.89 billion in revenue, while revenue rose 18.3% year over year.
• Despite mixed near-term headlines around AI spending, margin pressure, and regulatory scrutiny, Wall Street remains largely bullish on Microsoft, with 41 Buy ratings and a consensus Moderate Buy rating.

PKO Investment Management Joint Stock Co trimmed its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 11.6% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 99,000 shares of the software giant's stock after selling 13,000 shares during the period. Microsoft accounts for approximately 3.1% of PKO Investment Management Joint Stock Co's portfolio, making the stock its 4th largest holding. PKO Investment Management Joint Stock Co's holdings in Microsoft were worth $36,647,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC raised its stake 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 acquiring an additional 20 shares during the period. Bernzott Capital Advisors bought a new position in Microsoft during the fourth quarter worth about $34,000. Timmons Wealth Management LLC bought a new position in Microsoft during the fourth quarter worth about $36,000. Fairway Wealth LLC increased its stake in shares of Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after purchasing an additional 66 shares in the last quarter. Finally, University of Illinois Foundation bought a new stake in shares of Microsoft in the second quarter valued at approximately $50,000. 71.13% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MSFT. Oppenheimer restated an "outperform" rating and set a $515.00 price target (down from $630.00) on shares of Microsoft in a research note on Monday, April 27th. William Blair reissued an "outperform" rating on shares of Microsoft in a report on Monday, March 9th. Mizuho dropped their target price on Microsoft from $620.00 to $515.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 14th. Raymond James Financial lowered Microsoft from a "market perform" rating to a "market perform" rating in a report on Tuesday, May 5th. Finally, DZ Bank reiterated a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Forty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $560.86.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft shares bounced as the broader memory and semiconductor market stabilized, helping relieve some of the pressure tied to AI infrastructure and component-cost fears.
• Positive Sentiment: Wedbush and other bullish commentators said the recent tech selloff may be a buying opportunity, arguing Microsoft remains a core AI leader despite near-term volatility. Dan Ives Says Microsoft And Meta Are Being Treated Like 'Bear Market' Stocks
• Positive Sentiment: Microsoft was mentioned in new partnerships and product integrations, including Commvault, PitchBook, FPT, and ICON plc, reinforcing demand for Microsoft’s cloud and AI ecosystem. Microsoft Just Made Commvault a Native Azure Service. Here Is How to Play CVLT Stock.
• Neutral Sentiment: Microsoft also drew attention from investors after Michael Burry disclosed a long position, which some traders viewed as a contrarian buy signal.
• Neutral Sentiment: Multiple articles noted analysts still like the stock long term, but Wall Street remains focused on whether AI spending is destroying near-term margins and free cash flow. Wall Street Analysts Think Microsoft (MSFT) Is a Good Investment: Is It?
• Negative Sentiment: Stifel cut its Microsoft price target and warned that FY27 gross margin estimates may be too high because Azure growth is coming with heavier capex and margin pressure. Microsoft’s Stock Is Crippled
• Negative Sentiment: Microsoft announced another worldwide Xbox price increase, citing soaring memory and storage costs, which adds to concerns that hardware inflation is squeezing the gaming business.
• Negative Sentiment: New legal and regulatory pressure also weighed on the stock, including an Italy antitrust probe into Microsoft 365 pricing and new shareholder class-action notices over alleged investor misinformation.

Microsoft Stock Up 5.7%

Shares of NASDAQ MSFT opened at $372.97 on Friday. 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 business has a 50-day moving average of $410.37 and a 200-day moving average of $421.47. The firm has a market capitalization of $2.77 trillion, a price-to-earnings ratio of 22.20, a PEG ratio of 1.27 and a beta of 1.11. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $81.44 billion. During the same period last year, the firm posted $3.46 earnings per share. Microsoft's quarterly revenue was up 18.3% on a year-over-year basis. Sell-side analysts expect that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft's payout ratio is currently 21.67%.

Insider Buying and Selling

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction dated 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 sale, the chief executive officer directly owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 23,762 shares of company stock worth $10,508,361. Corporate insiders own 0.03% of the company's stock.

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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