Microsoft Corporation $MSFT is Point Break Capital Management LLC's 8th Largest Position

Key Points

• Point Break Capital Management reduced its Microsoft stake by 24.1% in the first quarter, selling 3,192 shares and retaining 10,032 shares worth about $3.7 million. Microsoft remains 4.2% of the firm’s portfolio and its eighth-largest holding.
• Microsoft reported a strong quarter, with earnings of $4.74 per share and revenue of $90.01 billion, exceeding analyst estimates and representing 17.7% year-over-year revenue growth.
• The company declared a quarterly dividend of $0.91 per share, while analysts maintained an overall “Moderate Buy” rating with an average price target of $559.16; insiders, however, sold shares during the latest quarter.

Point Break Capital Management LLC reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 24.1% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 10,032 shares of the software giant's stock after selling 3,192 shares during the period. Microsoft accounts for 4.2% of Point Break Capital Management LLC's portfolio, making the stock its 8th biggest holding. Point Break Capital Management LLC's holdings in Microsoft were worth $3,714,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently made changes to their positions in the stock. Longfellow Investment Management Co. LLC lifted its stake 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 valued at $29,000 after buying an additional 20 shares in the last quarter. Bernzott Capital Advisors purchased a new stake in Microsoft in the 4th quarter worth $34,000. Timmons Wealth Management LLC bought a new stake in Microsoft during the fourth quarter valued at about $36,000. Fairway Wealth LLC raised its holdings in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after acquiring an additional 66 shares during the period. Finally, University of Illinois Foundation purchased a new position in shares of Microsoft in the second quarter valued at about $50,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft Trading Up 1.2%

Shares of MSFT opened at $506.06 on Tuesday. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a 50-day moving average of $405.77 and a 200 day moving average of $406.95. The firm has a market capitalization of $3.76 trillion, a price-to-earnings ratio of 28.18, a PEG ratio of 1.61 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.65 EPS. On average, research analysts expect that Microsoft Corporation will post 19.58 EPS for the current year.

Microsoft Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft's payout ratio is presently 20.27%.

Insider Buying and Selling

In related news, 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 transaction, the chief executive officer owned 110,477 shares of the company's stock, valued at $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 38,572 shares of company stock valued at $17,775,330 over the last quarter. 0.03% of the stock is owned by corporate insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Maia 300 chip plans support the rally: Reports say Microsoft could unveil its Maia 300 AI accelerator as early as September and secure capacity for more than 300,000 chips by 2027, with longer-term ambitions exceeding one million units. The effort could reduce Microsoft’s dependence on Nvidia, lower AI-computing costs and potentially attract customers such as Anthropic. Microsoft plans to unveil its new Maia 300 AI chip this fall
• Positive Sentiment: Analysts see measured AI investment and further upside: Bernstein raised its Microsoft price target from $647 to $660, arguing that the company is not building data-center capacity too aggressively. The firm said new infrastructure would remain useful for Azure even if AI demand moderated. Microsoft's Datacenter Spending Is Disciplined
• Positive Sentiment: Cloud growth and backlog underpin investor confidence: JPMorgan cited Microsoft’s Azure expansion, substantial backlog and improving AI monetization while supporting higher market-wide earnings forecasts. Other bullish commentary points to strong recent results, including reported Azure growth and broad Copilot adoption. Microsoft Stock Rises as JPMorgan Backs AI Payoff
• Positive Sentiment: Capital returns add support: Microsoft’s large-scale dividends and share repurchases reinforce its position as a cash-generating technology leader, although investors are also evaluating how much capital is being redirected toward AI infrastructure. Microsoft Stock Runs One of the Market's Biggest Cash-Return Machines
• Neutral Sentiment: AI opportunity comes with execution risks: Analysts continue debating whether megacap AI spending will generate adequate cash flow. Separately, reports of AI models reaching real-world systems could increase scrutiny of Microsoft’s autonomous-agent products and enterprise security controls.
• Negative Sentiment: Legal notices remain an overhang: Investor-rights firms are promoting a securities class action involving purchases made between May 1, 2025, and January 28, 2026, with an August 11 lead-plaintiff deadline. The notices do not establish liability but could add reputational and litigation risk.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Morgan Stanley reaffirmed an "overweight" rating on shares of Microsoft in a report on Thursday, July 30th. Argus dropped their target price on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a research report on Friday, July 10th. Benchmark reiterated a "buy" rating on shares of Microsoft in a report on Friday, July 24th. HSBC decreased their price target on shares of Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Finally, DA Davidson restated a "buy" rating and set a $550.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and an average target price of $559.16.

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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