Paragon Capital Management Ltd Sells 11,938 Shares of Microsoft Corporation $MSFT

Key Points

• Paragon Capital Management trimmed its Microsoft stake by 17.4%, selling 11,938 shares and leaving 56,795 shares worth $27.47M, making MSFT about 5.6% of the firm's holdings and its fifth-largest position.
• Analysts remain broadly positive: despite several price-target cuts, the consensus rating is a “Moderate Buy” with an average target of $575.34 (coverage includes mostly Buy ratings).
• Microsoft announced major growth initiatives — including a roughly $18B investment in Australia for Azure AI/cloud capacity — will report fiscal Q3 on April 29, and declared a $0.91 quarterly dividend.

Paragon Capital Management Ltd trimmed its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 17.4% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 56,795 shares of the software giant's stock after selling 11,938 shares during the period. Microsoft accounts for approximately 5.6% of Paragon Capital Management Ltd's holdings, making the stock its 5th largest holding. Paragon Capital Management Ltd's holdings in Microsoft were worth $27,467,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in Microsoft by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 691,386,214 shares of the software giant's stock worth $259,539,471,000 after acquiring an additional 7,314,509 shares during the last quarter. State Street Corp lifted its position in shares of Microsoft by 1.1% during the second quarter. State Street Corp now owns 299,196,519 shares of the software giant's stock worth $148,823,341,000 after purchasing an additional 3,166,275 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Microsoft by 2.0% during the second quarter. Geode Capital Management LLC now owns 179,001,751 shares of the software giant's stock valued at $88,714,256,000 after purchasing an additional 3,532,054 shares during the last quarter. Norges Bank acquired a new stake in shares of Microsoft in the second quarter valued at approximately $50,493,678,000. Finally, Northern Trust Corp raised its position in Microsoft by 16.1% in the 4th quarter. Northern Trust Corp now owns 83,787,746 shares of the software giant's stock worth $35,316,535,000 after purchasing an additional 11,600,470 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

Analyst Ratings Changes

A number of research analysts have commented on MSFT shares. KeyCorp decreased their price objective on Microsoft from $630.00 to $600.00 and set an "overweight" rating on the stock in a research report on Thursday, January 29th. UBS Group reiterated a "buy" rating on shares of Microsoft in a research report on Friday. Wells Fargo & Company cut their target price on shares of Microsoft from $630.00 to $615.00 and set an "overweight" rating on the stock in a research report on Thursday, January 29th. Wolfe Research lowered their price target on shares of Microsoft from $625.00 to $530.00 and set an "outperform" rating for the company in a research report on Thursday, January 29th. Finally, Cantor Fitzgerald restated an "overweight" rating and issued a $590.00 price objective on shares of Microsoft in a report on Thursday, January 29th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $575.34.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft announced a roughly $18B investment in Australia to expand Azure AI supercomputing, cloud capacity, cybersecurity and upskilling — a major long‑term revenue and capacity commitment that supports the AI growth narrative. Microsoft to invest $18B in Australia to expand AI, cloud and digital infrastructure
• Positive Sentiment: High‑profile investor Michael Burry disclosed a new long position in MSFT, signaling conviction from a value‑oriented, headline‑driving buyer — this can attract other investors looking for a contrarian entry. Big Short Investor Michael Burry Opens New Position in Microsoft Stock (MSFT)
• Positive Sentiment: Analysts remain upbeat: Jefferies reaffirmed a Buy and other firms (Guggenheim, TD Cowen) have high price targets or bullish notes citing Copilot/Azure monetization, supporting upside sentiment into earnings. Jefferies gives a buy rating on Microsoft
• Positive Sentiment: Gaming/product signals: Xbox branding returned and leaked details of a cheaper Xbox Game Pass Starter Edition have lifted expectations for consumer engagement and subscription growth. Microsoft Gaming reverts to Xbox branding as part of new mission statement
• Neutral Sentiment: Upcoming catalyst: Microsoft reports fiscal Q3 results on April 29 — earnings will likely drive larger intraday moves as investors look for Azure growth, Copilot adoption and AI capex conversion. Microsoft Will Report Q3 Earnings on April 29
• Neutral Sentiment: Market context: Tech sector strength and broader AI‑led optimism are supporting MSFT alongside peers; short‑interest data in the feed is not meaningful (reported 0 shares). Sector Update: Tech Stocks Gain Late Afternoon
• Negative Sentiment: Cost/structure concerns: Microsoft launched its first‑ever voluntary buyout program (~7% of U.S. workforce) as it reshapes for AI — while aimed at efficiency, the move and public discussion of heavy AI capex have pressured sentiment and raised near‑term uncertainty. Microsoft plans first voluntary employee buyout in company's 51-year history
• Negative Sentiment: Investor worry over AI capital intensity and OpenAI dependence persists in commentary and some sell‑side notes, which could keep volatility elevated into earnings despite long‑term upside. Microsoft Is A Value Trap, OpenAI Dependence Could Backfire

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $424.54 on Monday. The firm's 50 day simple moving average is $393.48 and its 200 day simple moving average is $450.09. Microsoft Corporation has a fifty-two week low of $356.28 and a fifty-two week high of $555.45. The company has a market capitalization of $3.15 trillion, a price-to-earnings ratio of 26.55, a P/E/G ratio of 1.60 and a beta of 1.11. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.86 by $0.28. The firm had revenue of $81.27 billion during the quarter, compared to analysts' expectations of $80.28 billion. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The business's revenue for the quarter was up 16.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.23 earnings per share. As a group, sell-side analysts forecast that Microsoft Corporation will post 16.54 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. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.91 per share. The ex-dividend date is Thursday, May 21st. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft's payout ratio is currently 22.76%.

Insider Activity

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

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).

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