Microsoft Corporation $MSFT Stake Boosted by Valley National Advisers Inc.

Key Points

• Valley National Advisers increased its Microsoft stake by 4.4% in Q4 to 39,701 shares (worth about $19.2 million), making MSFT its ninth-largest holding.
• Microsoft beat expectations for the quarter with $4.27 EPS vs. $4.06 expected and $82.89 billion in revenue (up 18.3% YoY), and announced a $0.91 quarterly dividend (ex‑dividend May 21; yield ~0.9%).
• Analyst sentiment is broadly positive (consensus "Moderate Buy," avg. price target $556.15) supported by strong Azure/AI momentum and Pentagon AI deals, but investors remain cautious over elevated capex guidance (~$190B) and rising cloud cash‑burn concerns.

Valley National Advisers Inc. lifted its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.4% 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 39,701 shares of the software giant's stock after buying an additional 1,672 shares during the period. Microsoft makes up 2.7% of Valley National Advisers Inc.'s holdings, making the stock its 9th biggest position. Valley National Advisers Inc.'s holdings in Microsoft were worth $19,199,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Longfellow Investment Management Co. LLC increased its position 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 purchasing an additional 20 shares during the last quarter. Bayforest Capital Ltd acquired a new stake in Microsoft during the third quarter worth about $38,000. Sellwood Investment Partners LLC acquired a new stake in Microsoft during the third quarter worth about $49,000. University of Illinois Foundation acquired a new stake in Microsoft during the second quarter worth about $50,000. Finally, Daytona Street Capital LLC acquired a new stake in Microsoft during the fourth quarter worth about $50,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Price Performance

Shares of MSFT opened at $414.41 on Friday. 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 $3.08 trillion, a PE ratio of 24.67, a P/E/G ratio of 1.53 and a beta of 1.10. The firm has a 50-day simple moving average of $395.28 and a two-hundred day simple moving average of $448.37. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.38.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data 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. The firm had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The business's quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.46 earnings per share. As a group, analysts forecast that Microsoft Corporation will post 16.6 EPS for the current year.

Microsoft Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.91 dividend. The ex-dividend date is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft's payout ratio is 22.76%.

Analyst Ratings Changes

MSFT has been the subject of several recent analyst reports. DA Davidson cut their price objective on shares of Microsoft from $650.00 to $550.00 and set a "buy" rating for the company in a research report on Thursday. Evercore dropped their price target on shares of Microsoft from $580.00 to $510.00 and set an "outperform" rating for the company in a research report on Thursday. Guggenheim reiterated a "buy" rating and set a $586.00 price target on shares of Microsoft in a research report on Thursday. Wells Fargo & Company lifted their price target on shares of Microsoft from $615.00 to $625.00 and gave the company an "overweight" rating in a research report on Thursday. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of Microsoft in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $556.15.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 results and the earnings call highlighted 40%+ Azure/cloud growth and accelerating AI monetization, giving investors confidence in the company’s long-term AI revenue runway. Microsoft Earnings Call: AI Growth Surges, Margins Squeezed
• Positive Sentiment: The U.S. Pentagon signed agreements allowing Microsoft’s AI tech on classified networks — a credibility and contract win that can translate into long-term, high‑value government revenue. Pentagon inks deals with Nvidia, Microsoft and AWS to deploy AI on classified networks
• Positive Sentiment: Analyst actions include several price‑target raises and reaffirmations (Benchmark raised to $525, others keep buy ratings), signaling continued bullish conviction among some buy‑side firms. Microsoft Corp. (MSFT) Price Target Increased to $525 by Benchmark
• Positive Sentiment: Product catalyst: rollout of Windows 11’s new Xbox Mode supports consumer engagement and adds a near‑term, tangible product story for the stock. Microsoft Stock (MSFT) Jumps on Windows 11 Xbox Mode Rollout
• Neutral Sentiment: The revised Microsoft–OpenAI relationship (ending exclusivity) is being parsed by markets: it reduces some exclusivity upside but clarifies commercial terms that could be neutral-to-positive longer term depending on monetization. Microsoft and OpenAI Just Ended Their Exclusive Deal, and Wall Street Is Trying Hard to Shake Off the Negatives for MSFT Stock
• Neutral Sentiment: Commentary from TV/hosts (e.g., Jim Cramer) describes MSFT as attractively valued but notes limited new messaging on the call — this shapes retail sentiment but isn’t new fundamental data. Jim Cramer on Microsoft: “Maybe You Can Consider It Cheap, But It’s Software”
• Negative Sentiment: Investors remain focused on record capex (roughly $190B guidance) and the near‑term hit to free cash flow — that spending narrative caused the post‑earnings pullback and continues to cap the multiple. Beat meets bill: MSFT stock slips on AI expenditure concerns despite strong Q3
• Negative Sentiment: Goldman’s note flagging extreme cloud cash burn and other outlets highlighting the industry’s rising AI capex raises concern that spending could pressure margins and returns if monetization lags. Microsoft, Amazon On Watch ― Goldman Sounds Alarm On 90% Cloud Cash Burn
• Negative Sentiment: Some brokers trimmed price targets or cut upside on valuation as they bake in capex risk (HSBC cut its target), keeping a portion of the market cautious. HSBC Cuts Microsoft Price Target to $571 From $593

Insider Buying and Selling

In other Microsoft news, Director John W. Stanton acquired 5,000 shares of the company's stock in a transaction that occurred on Wednesday, February 18th. The stock was purchased at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares of the company's stock, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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. 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).

Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.