Microsoft Corporation $MSFT is XXEC Inc.'s 2nd Largest Position

Key Points

• XXEC Inc. trimmed its Microsoft stake by 9.8% in the fourth quarter, but Microsoft still remains its 2nd-largest holding, making up 8.2% of the portfolio and valued at about $8.45 million.
• Microsoft shares were down 3.2%, opening at $367.34, as the stock traded well below its 50-day and 200-day moving averages and near its 52-week low of $356.28.
• The company continues to show strong fundamentals, with the latest quarter beating expectations on EPS and revenue, while analysts still view the stock as a Moderate Buy with a consensus target price of $561.20.

XXEC Inc. reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 9.8% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 17,476 shares of the software giant's stock after selling 1,891 shares during the quarter. Microsoft comprises about 8.2% of XXEC Inc.'s investment portfolio, making the stock its 2nd biggest position. XXEC Inc.'s holdings in Microsoft were worth $8,452,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also modified their holdings of the company. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors purchased a new stake in shares of Microsoft in the fourth quarter valued at $34,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft in the fourth quarter valued at $36,000. Fairway Wealth LLC lifted its holdings in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after acquiring an additional 66 shares during the last quarter. Finally, LSV Asset Management bought a new stake in shares of Microsoft in the 4th quarter worth about $44,000. 71.13% of the stock is owned by institutional investors.

Microsoft Trading Down 3.2%

Shares of NASDAQ MSFT opened at $367.34 on Tuesday. Microsoft Corporation has a twelve month low of $356.28 and a twelve month high of $555.45. The firm has a market cap of $2.73 trillion, a PE ratio of 21.87, a price-to-earnings-growth ratio of 1.37 and a beta of 1.11. The business has a fifty day simple moving average of $412.26 and a two-hundred day simple moving average of $424.28. 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 posted its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.06 by $0.21. The business had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business's revenue was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.46 EPS. Analysts expect that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders 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 annualized dividend and a dividend yield of 1.0%. Microsoft's payout ratio is currently 21.67%.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and Chevron announced a 20-year agreement to build Project Kilby, a 2.67-gigawatt natural-gas-powered facility in West Texas to support Microsoft’s AI and cloud data centers, reinforcing long-term demand for Microsoft’s AI infrastructure. Reuters article on Chevron signs power supply deal with Microsoft for Texas data center
• Positive Sentiment: Microsoft’s CEO Satya Nadella called for broader AI access, lower-cost models, and more emphasis on trust and choice, which supports the case that Microsoft is positioning itself to compete beyond the expensive frontier-model race. Yahoo Finance article on Microsoft CEO Calls for Broader AI Access
• Neutral Sentiment: Microsoft was cited as part of a broader Big Tech pullback tied to AI sector rotation and regulatory overhang, suggesting the stock is being dragged by the group rather than by company-specific operating news. Yahoo Finance article on US Equity Indexes Mixed Amid Steep Decline in Communication Services
• Neutral Sentiment: Multiple investor-rights firms announced or promoted a securities class action against Microsoft related to alleged Copilot-related disclosures, adding headline risk but not yet changing the underlying business outlook. GlobeNewswire article on MSFT Alert
• Negative Sentiment: New class-action headlines around Microsoft’s Copilot issues and alleged investor harm may weigh on sentiment by increasing legal uncertainty and keeping attention on prior stock declines. PR Newswire article on MSFT Stockholder Alert

Insider Transactions at Microsoft

In related news, EVP Amy Coleman sold 1,262 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares of the company's stock, valued at $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Takeshi Numoto sold 4,500 shares of the business's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of the transaction, the executive vice president directly owned 47,468 shares of the company's stock, valued at approximately $19,122,009.12. The trade was a 8.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 23,762 shares of company stock valued at $10,508,361. Company insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

MSFT has been the topic of several analyst reports. Evercore cut their price target on shares of Microsoft from $580.00 to $510.00 and set an "outperform" rating on the stock in a report on Thursday, April 30th. TD Cowen restated a "buy" rating and set a $540.00 target price on shares of Microsoft in a research report on Thursday, June 4th. Piper Sandler reiterated an "overweight" rating on shares of Microsoft in a report on Tuesday, May 26th. Truist Financial decreased their price target on Microsoft from $675.00 to $575.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft dropped their price objective on Microsoft from $575.00 to $550.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Forty-one research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Microsoft currently has a consensus rating of "Moderate Buy" and a consensus target price of $561.20.

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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