Microsoft Corporation $MSFT Stake Boosted by Reynders McVeigh Capital Management LLC

Key Points

• Reynders McVeigh Capital Management increased its Microsoft stake by 0.7% in the fourth quarter, ending with 193,371 shares valued at about $93.5 million. Microsoft is now the fund’s fourth-largest holding.
• Microsoft reported strong quarterly results, with EPS of $4.27 beating estimates and revenue of $82.89 billion topping expectations. Revenue rose 18.3% year over year, reinforcing the company’s growth momentum.
• The company also declared a quarterly dividend of $0.91 per share, and analysts remain broadly bullish with a consensus rating of Moderate Buy and an average price target of $560.88.

Reynders McVeigh Capital Management LLC lifted its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 0.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 193,371 shares of the software giant's stock after buying an additional 1,331 shares during the period. Microsoft makes up 4.4% of Reynders McVeigh Capital Management LLC's holdings, making the stock its 4th biggest position. Reynders McVeigh Capital Management LLC's holdings in Microsoft were worth $93,518,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Longfellow Investment Management Co. LLC lifted its stake in shares of 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 buying an additional 20 shares in the last quarter. Bayforest Capital Ltd purchased a new position in shares of Microsoft in the third quarter worth about $38,000. Fairway Wealth LLC lifted 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 buying an additional 66 shares in the last quarter. LSV Asset Management purchased a new position in shares of Microsoft in the fourth quarter worth about $44,000. Finally, Sellwood Investment Partners LLC purchased a new position in shares of Microsoft in the third quarter worth about $49,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Price Performance

Shares of MSFT opened at $450.24 on Monday. Microsoft Corporation has a 1-year low of $356.28 and a 1-year high of $555.45. The stock has a market cap of $3.34 trillion, a PE ratio of 26.80, a P/E/G ratio of 1.62 and a beta of 1.11. The firm has a 50-day simple moving average of $402.09 and a two-hundred day simple moving average of $434.12. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly 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 during the quarter, compared to analysts' expectations of $81.44 billion. During the same period last year, the business earned $3.46 earnings per share. The business's revenue for the quarter was up 18.3% on a year-over-year basis. As a group, analysts forecast that Microsoft Corporation will post 16.76 EPS for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft's dividend payout ratio (DPR) is currently 21.67%.

Analyst Upgrades and Downgrades

MSFT has been the topic of a number of analyst reports. Melius Research set a $430.00 target price on shares of Microsoft in a research note on Monday, February 9th. BMO Capital Markets reduced their target price on shares of Microsoft from $575.00 to $505.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 28th. Royal Bank Of Canada reaffirmed a "buy" rating on shares of Microsoft in a research note on Friday, May 22nd. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Finally, Scotiabank reduced their target price on shares of Microsoft from $600.00 to $550.00 and set an "outperform" rating on the stock in a research note on Thursday, April 30th. Thirty-nine analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Microsoft has an average rating of "Moderate Buy" and a consensus price target of $560.88.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and Nvidia teased “a new era of PC,” with reports pointing to new Surface hardware and a possible AI-focused chip announcement at Computex, which could refresh the Windows/PC upgrade cycle. Article Title
• Positive Sentiment: Reports that Microsoft will unveil a new coding model and other in-house AI tools at next week’s Build conference reinforce the company’s AI monetization story and support sentiment around GitHub Copilot and Azure demand. Article Title
• Positive Sentiment: Microsoft’s latest earnings backdrop remains solid, with revenue growth of 18.3% and better-than-expected EPS, helping investors justify the stock’s premium valuation.
• Positive Sentiment: Several bullish writeups and analyst commentary say MSFT still has room to run because Azure, M365 cloud, and AI revenue are expanding faster than the broader software market. Article Title
• Neutral Sentiment: Microsoft is also drawing attention from investors, fund managers, and even congressional buyers, which supports the stock’s defensive-growth reputation but does not change fundamentals on its own.
• Negative Sentiment: A TechCrunch report says Microsoft is facing backlash for threatening a security researcher over unpatched bugs and code disclosure, adding some reputational noise ahead of Build. Article Title

Insider Transactions at Microsoft

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the sale, the executive vice president directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of the transaction, the executive vice president owned 137,933 shares of the company's stock, valued at $56,486,322.16. This trade represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.03% of the stock is owned by company insiders.

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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