Microsoft Corporation $MSFT Position Boosted by Kingswood Wealth Advisors LLC

Key Points

• Kingswood Wealth Advisors LLC increased its Microsoft stake by 31.2% in the fourth quarter, buying 22,183 shares to bring its total to 93,175 shares worth about $45.1 million.
• Microsoft reported strong quarterly results, with EPS of $4.27 beating estimates and revenue of $82.89 billion topping expectations, while revenue rose 18.3% year over year.
• The company also announced a quarterly dividend of $0.91 per share, and recent news around the stock includes upbeat AI/Azure commentary alongside a UK antitrust probe that could create regulatory pressure.

Kingswood Wealth Advisors LLC grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 31.2% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 93,175 shares of the software giant's stock after buying an additional 22,183 shares during the period. Microsoft accounts for 2.2% of Kingswood Wealth Advisors LLC's portfolio, making the stock its 5th biggest position. Kingswood Wealth Advisors LLC's holdings in Microsoft were worth $45,061,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC grew 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 worth $29,000 after purchasing an additional 20 shares during the period. Bayforest Capital Ltd purchased a new stake in Microsoft in the third quarter worth $38,000. LSV Asset Management purchased a new stake in Microsoft in the fourth quarter worth $44,000. Sellwood Investment Partners LLC purchased a new stake in Microsoft in the third quarter worth $49,000. Finally, Daytona Street Capital LLC purchased a new stake in Microsoft in the fourth quarter worth $50,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Stock Up 3.1%

MSFT stock opened at $421.92 on Friday. Microsoft Corporation has a fifty-two week low of $356.28 and a fifty-two week high of $555.45. The business's 50-day moving average is $398.18 and its two-hundred day moving average is $441.39. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. The company has a market cap of $3.13 trillion, a price-to-earnings ratio of 25.11, a P/E/G ratio of 1.52 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 for the quarter, beating analysts' consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.44 billion. During the same quarter in the prior year, the company earned $3.46 earnings per share. Microsoft's revenue was up 18.3% on a year-over-year basis. As a group, analysts forecast that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Dividend Announcement

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

Key Headlines Impacting Microsoft

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

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Truist Financial reduced their price target on Microsoft from $675.00 to $575.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. HSBC reduced their price target on Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reduced their price target on Microsoft from $575.00 to $550.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Citigroup boosted their target price on Microsoft from $600.00 to $620.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Finally, Raymond James Financial downgraded Microsoft from a "market perform" rating to a "market perform" rating in a report on Tuesday, May 5th. Thirty-nine equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $560.88.

Insider Transactions at Microsoft

In related news, Director John W. Stanton purchased 5,000 shares of Microsoft stock in a transaction on Wednesday, February 18th. The stock was acquired at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the transaction, the director directly owned 83,905 shares in the company, valued at $33,339,651.75. This represents a 6.34% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the company's stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the sale, the executive vice president owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. The trade was a 8.20% decrease in their position. The SEC filing for this sale provides additional information. 0.03% of the stock is currently owned by corporate insiders.

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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