Microsoft Corporation $MSFT Stake Raised by Optas LLC

Key Points

• Optas LLC increased its Microsoft stake by 10.3% in the fourth quarter, buying 3,349 additional shares and bringing its total holdings to 35,710 shares valued at about $17.27 million.
• Microsoft reported stronger-than-expected quarterly results, with EPS of $4.27 versus $4.06 expected and revenue of $82.89 billion, up 18.3% year over year.
• Analysts remain broadly positive despite some target cuts, with Microsoft carrying a Moderate Buy consensus and an average price target of $560.88; the company also declared a quarterly dividend of $0.91 per share.

Optas LLC grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 10.3% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 35,710 shares of the software giant's stock after purchasing an additional 3,349 shares during the quarter. Microsoft makes up about 2.7% of Optas LLC's investment portfolio, making the stock its 10th biggest position. Optas LLC's holdings in Microsoft were worth $17,270,000 as of its most recent SEC filing.

Other large investors also recently made changes to their positions in the company. 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 worth $29,000 after purchasing an additional 20 shares during the period. Bayforest Capital Ltd purchased a new position in shares of Microsoft during the 3rd quarter worth $38,000. Sellwood Investment Partners LLC purchased a new position in shares of Microsoft during the 3rd quarter worth $49,000. University of Illinois Foundation purchased a new position in shares of Microsoft during the 2nd quarter worth $50,000. Finally, Daytona Street Capital LLC purchased a new position in shares of Microsoft during the 4th quarter worth $50,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Insider Buying and Selling at Microsoft

In related news, EVP Kathleen T. Hogan sold 12,321 shares of the stock in a transaction on 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 directly owned 137,933 shares in the company, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John W. Stanton purchased 5,000 shares of the stock in a transaction that occurred on Wednesday, February 18th. The stock was bought at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares in the company, valued at $33,339,651.75. This represents a 6.34% increase in their position. The SEC filing for this purchase provides additional information. 0.03% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on MSFT shares. HSBC reduced their price target on Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. DZ Bank reissued a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Rothschild & Co Redburn dropped their price objective on Microsoft from $450.00 to $400.00 and set a "neutral" rating for the company in a report on Thursday, April 23rd. Robert W. Baird cut their target price on Microsoft from $540.00 to $500.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 15th. Finally, New Street Research cut their target price on Microsoft from $675.00 to $600.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Thirty-nine investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Microsoft currently has an average rating of "Moderate Buy" and a consensus price target of $560.88.

Microsoft Trading Up 3.1%

Shares of MSFT opened at $421.92 on Friday. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The firm has a market capitalization of $3.13 trillion, a P/E ratio of 25.11, a price-to-earnings-growth ratio of 1.47 and a beta of 1.10. The stock's fifty day simple moving average is $398.18 and its 200 day simple moving average is $441.39. Microsoft Corporation has a twelve month low of $356.28 and a twelve month high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same period last year, the company posted $3.46 EPS. The business's quarterly revenue was up 18.3% on a year-over-year basis. On average, equities research analysts forecast that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Dividend Announcement

The business also recently declared 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. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft's dividend payout ratio is currently 21.67%.

More Microsoft News

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

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).

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.