Microsoft Corporation $MSFT Stock Position Reduced by Fortitude Financial LLC

Key Points

• Fortitude Financial LLC cut its Microsoft stake by 94.3% in the fourth quarter, selling 26,227 shares and leaving it with 1,575 shares valued at about $762,000.
• Microsoft’s latest earnings were strong, with EPS of $4.27 beating estimates and revenue of $82.89 billion topping forecasts, while revenue grew 18.3% year over year.
• Investor focus remains on Microsoft’s AI and OpenAI relationship: recent headlines say the company’s revenue-sharing with OpenAI may be capped at $38 billion through 2030, which could limit upside but still supports its AI strategy.

Fortitude Financial LLC lessened its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 94.3% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,575 shares of the software giant's stock after selling 26,227 shares during the period. Microsoft comprises 0.6% of Fortitude Financial LLC's portfolio, making the stock its 21st largest position. Fortitude Financial LLC's holdings in Microsoft were worth $762,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC lifted 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 buying an additional 20 shares during the last quarter. Bayforest Capital Ltd bought a new position in Microsoft during the 3rd quarter worth approximately $38,000. LSV Asset Management acquired a new stake in shares of Microsoft during the 4th quarter worth approximately $44,000. Sellwood Investment Partners LLC acquired a new stake in shares of Microsoft during the 3rd quarter worth approximately $49,000. Finally, Daytona Street Capital LLC acquired a new stake in shares of Microsoft during the 4th quarter worth approximately $50,000. Institutional investors own 71.13% of the company's stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft remains a long-term AI winner, with several notes saying the stock still looks undervalued and that its AI/Cloud thesis remains intact. Microsoft’s (MSFT) Q3 Revealed 3 Things that Matter for the AI Bull Case
• Positive Sentiment: Microsoft CEO Satya Nadella’s testimony in the Musk v. Altman trial reinforced Microsoft’s early backing of OpenAI and its expected payoff from that investment, which some investors view as supportive of the company’s AI strategy. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Positive Sentiment: OpenAI reportedly capped revenue-sharing payments to Microsoft at $38 billion through 2030, which may be read as a structural clarification that still preserves a major economic relationship while supporting OpenAI’s IPO path. Microsoft secures structural wins in OpenAI revenue cap deal, Wedbush says
• Neutral Sentiment: Microsoft was mentioned in broader AI-market commentary about whether AI spending is generating enough ROI, which adds to sentiment volatility but does not directly change fundamentals. Chamath Warns Companies Must Prove ROI from AI Within ‘500 Days’
• Neutral Sentiment: Several reports focused on Microsoft’s role in OpenAI’s founding and governance in the Musk lawsuit; these headlines keep the stock in the news, but the market impact is mostly indirect unless they lead to regulatory or contractual changes. How Much Power Did Microsoft Have Over OpenAI?
• Negative Sentiment: The biggest near-term overhang is the perception that Microsoft may have less upside from OpenAI than previously assumed, after reports that revenue-sharing is capped far below earlier projections. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Negative Sentiment: Nadella’s testimony in the Musk trial also highlighted how closely Microsoft is tied to OpenAI’s governance fight, keeping legal and reputational risks in focus for investors. Microsoft CEO Satya Nadella takes stand in Musk v. Altman trial

Microsoft Stock Down 1.2%

MSFT opened at $407.77 on Wednesday. Microsoft Corporation has a 12 month low of $356.28 and a 12 month high of $555.45. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The stock has a market cap of $3.03 trillion, a P/E ratio of 24.27, a P/E/G ratio of 1.49 and a beta of 1.10. The stock's 50 day moving average price is $397.60 and its 200 day moving average price is $443.14.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, beating 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 firm had revenue of $82.89 billion for the quarter, compared to analysts' expectations of $81.44 billion. During the same period last year, the firm earned $3.46 EPS. The firm's revenue was up 18.3% compared to the same quarter last year. As a group, research analysts predict that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given 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 (DPR) is currently 21.67%.

Analyst Ratings Changes

A number of analysts have recently weighed in on MSFT shares. William Blair reiterated an "outperform" rating on shares of Microsoft in a research report on Monday, March 9th. The Goldman Sachs Group reiterated a "buy" rating on shares of Microsoft in a research report on Thursday, April 30th. Weiss Ratings cut Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, March 24th. Melius Research set a $430.00 price target on Microsoft in a research report on Monday, February 9th. Finally, Wedbush reiterated an "outperform" rating and set a $575.00 price target on shares of Microsoft in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $562.69.

Insider Activity at Microsoft

In related news, EVP Kathleen T. Hogan sold 12,321 shares of the firm's stock in a transaction that occurred 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 sale, the executive vice president directly owned 137,933 shares in the company, valued at $56,486,322.16. This trade represents a 8.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John W. Stanton bought 5,000 shares of the stock in a transaction that occurred 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 owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.03% of the stock is owned by company insiders.

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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