Microsoft Corporation $MSFT Stock Position Lessened by Hollow Brook Wealth Management LLC

Key Points

• Hollow Brook Wealth Management cut its Microsoft stake by 11.3% in the fourth quarter, selling 3,943 shares and leaving it with 30,798 shares worth about $14.9 million.
• Microsoft reported better-than-expected quarterly results, with EPS of $4.27 on revenue of $82.89 billion, both topping analyst estimates and showing 18.3% revenue growth year over year.
• The company also announced a quarterly dividend of $0.91 per share, while insider selling continued recently, including transactions by CEO Judson Althoff and EVP Takeshi Numoto.

Hollow Brook Wealth Management LLC lessened its position in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 11.3% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 30,798 shares of the software giant's stock after selling 3,943 shares during the quarter. Microsoft makes up 3.9% of Hollow Brook Wealth Management LLC's investment portfolio, making the stock its 4th largest holding. Hollow Brook Wealth Management LLC's holdings in Microsoft were worth $14,895,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC increased its holdings in 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. Bernzott Capital Advisors purchased a new position in shares of Microsoft in the 4th quarter valued at about $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft in the 4th quarter valued at about $36,000. Fairway Wealth LLC boosted its position in shares of Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares during the period. Finally, LSV Asset Management acquired a new stake in shares of Microsoft in the 4th quarter valued at about $44,000. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Price Performance

Shares of Microsoft stock opened at $393.83 on Wednesday. Microsoft Corporation has a twelve month low of $356.28 and a twelve month high of $555.45. The stock has a market capitalization of $2.93 trillion, a P/E ratio of 23.44, a PEG ratio of 1.44 and a beta of 1.11. 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 business's fifty day moving average price is $412.01 and its 200 day moving average price is $427.45.

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, 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 firm had revenue of $82.89 billion for the quarter, compared to analysts' expectations of $81.44 billion. During the same quarter last year, the firm earned $3.46 earnings per share. The firm's revenue for the quarter was up 18.3% compared to the same quarter last year. As a group, research analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors 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 dividend on an annualized basis and a yield of 0.9%. Microsoft's dividend payout ratio (DPR) is presently 21.67%.

Insider Activity at Microsoft

In related news, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction on Wednesday, June 10th. The shares were 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 owned 47,468 shares in the company, valued at $19,122,009.12. The trade was a 8.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 23,762 shares of company stock worth $10,508,361. 0.03% of the stock is owned by insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft launched a new AI agent with pay-as-you-go pricing, a shift that could improve monetization and help the company capture more revenue as customers adopt usage-based AI tools.
• Positive Sentiment: Reports say Microsoft is exploring lower-cost AI model options for Copilot, which could reduce infrastructure costs and improve profitability if implemented successfully.
• Positive Sentiment: Microsoft’s product and AI roadmap continues to attract long-term bulls, with analysts and investors still pointing to the company’s strong enterprise position and AI-driven growth potential.
• Neutral Sentiment: Microsoft was reported to have held talks for a $3 billion Oracle cloud infrastructure lease, but the deal reportedly collapsed over security and compliance issues, limiting any near-term impact on operations.
• Neutral Sentiment: Coverage around a possible Xbox restructuring or spin-off highlights strategic uncertainty in gaming, though it could eventually improve Microsoft’s overall margin profile if the division is separated or reshaped.
• Negative Sentiment: Shareholders filed a class action and securities-fraud investigations were announced over alleged misstatements tied to Azure growth and AI spending, creating legal and reputational overhang for Microsoft Corporation NASDAQ: MSFT.
• Negative Sentiment: Reports that Microsoft may shut down or restructure Xbox studios add to concerns that the gaming segment is a drag on profitability and could require more restructuring costs.
• Negative Sentiment: Recent commentary also points to heavy AI capital expenditures and softer Azure growth, reinforcing investor worries that Microsoft’s spending is rising faster than its cloud revenue growth.

Wall Street Analyst Weigh In

A number of analysts have weighed in on MSFT shares. Guggenheim reaffirmed a "buy" rating and set a $586.00 price objective on shares of Microsoft in a research report on Thursday, April 30th. Oppenheimer reissued an "outperform" rating and issued a $515.00 price target (down from $630.00) on shares of Microsoft in a report on Monday, April 27th. Arete Research lifted their price objective on Microsoft from $730.00 to $870.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Weiss Ratings cut Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, March 24th. Finally, Citizens Jmp began coverage on Microsoft in a research report on Monday, June 1st. They set an "outperform" rating and a $550.00 price target for the company. Forty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $561.20.

About Microsoft

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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