Nwam LLC Cuts Stock Holdings in Microsoft Corporation $MSFT

Key Points

• Nwam LLC trimmed its Microsoft stake by 1.3% in the fourth quarter, selling 3,162 shares and leaving it with 242,776 shares valued at about $114.9 million. Microsoft remains the fund’s largest holding, accounting for 6.6% of its portfolio.
• Microsoft reported strong quarterly results, with EPS of $4.27 beating expectations and revenue of $82.89 billion topping estimates, while revenue rose 18.3% year over year. Analysts still expect full-year EPS of 16.76.
• The company also announced a quarterly dividend of $0.91 per share, payable June 11, and analysts remain broadly positive, with a consensus rating of Moderate Buy and an average price target of $561.20.

Nwam LLC decreased its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 1.3% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 242,776 shares of the software giant's stock after selling 3,162 shares during the period. Microsoft comprises approximately 6.6% of Nwam LLC's holdings, making the stock its largest holding. Nwam LLC's holdings in Microsoft were worth $114,931,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in MSFT. 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 valued at $29,000 after buying an additional 20 shares in the last quarter. Bernzott Capital Advisors bought a new position in Microsoft in the 4th quarter worth about $34,000. Fairway Wealth LLC grew its stake in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after acquiring an additional 66 shares in the last quarter. LSV Asset Management bought a new position in Microsoft in the 4th quarter worth about $44,000. Finally, Sellwood Investment Partners LLC bought a new position in Microsoft in the 3rd quarter worth about $49,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Stock Down 3.2%

Shares of NASDAQ MSFT opened at $427.34 on Thursday. 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 stock has a market capitalization of $3.17 trillion, a PE ratio of 25.44, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. The stock's fifty day simple moving average is $405.61 and its two-hundred day simple moving average is $432.76. Microsoft Corporation has a 12-month low of $356.28 and a 12-month high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.06 by $0.21. The business had revenue of $82.89 billion for the quarter, compared to analysts' expectations of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter last year, the firm earned $3.46 EPS. As a group, analysts expect that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Dividend Announcement

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

Analysts Set New Price Targets

Several brokerages recently issued reports on MSFT. Scotiabank reduced their price objective on Microsoft from $600.00 to $550.00 and set an "outperform" rating on the stock in a report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reduced their price objective on Microsoft from $575.00 to $550.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. William Blair restated an "outperform" rating on shares of Microsoft in a report on Monday, March 9th. Daiwa Securities Group reduced their price objective on Microsoft from $630.00 to $600.00 and set a "buy" rating on the stock in a report on Wednesday, February 4th. Finally, President Capital raised their price objective on Microsoft from $500.00 to $520.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Forty investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $561.20.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s Build announcements suggest it is broadening its AI platform with proprietary models and agentic tools, which could reduce reliance on OpenAI and improve margins over time.
• Positive Sentiment: New partnerships and integrations with Nvidia, healthcare groups like Mayo Clinic, and third-party enterprise tools expand Microsoft’s ecosystem and may support future cloud demand.
• Positive Sentiment: Analyst and investor commentary remains constructive, with several reports arguing that Microsoft’s AI opportunity and Azure growth still look underappreciated. Article Title
• Neutral Sentiment: The company’s quantum-computing update and AI infrastructure ambitions are long-term catalysts, but they are not expected to contribute meaningfully to near-term earnings. Article Title
• Negative Sentiment: Some investors appear to be taking profits after the Build rally and remain cautious about Microsoft’s heavy AI spending and execution risk.
• Negative Sentiment: Judson Althoff’s disclosed share sale may add to short-term sentiment pressure, even though the transaction was relatively small compared with his remaining holdings. Article Title

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares of the company's stock, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the stock in a transaction on Friday, March 6th. The shares were 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 SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 29,083 shares of company stock valued at $12,710,152. 0.03% of the stock is currently owned by corporate 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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