Prairiewood Capital LLC Buys 1,648 Shares of Microsoft Corporation $MSFT

Key Points

• Prairiewood Capital LLC increased its Microsoft stake by 39.8% in the first quarter, buying 1,648 additional shares to bring its total to 5,789 shares worth about $2.14 million.
• Microsoft beat quarterly expectations, reporting EPS of $4.27 versus $4.06 expected and revenue of $82.89 billion versus $81.44 billion expected, with revenue up 18.3% year over year.
• The company also announced a quarterly dividend of $0.91 per share, while analysts remain broadly bullish with 41 Buy ratings and a consensus target price of $561.20.

Prairiewood Capital LLC boosted its stake in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 39.8% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,789 shares of the software giant's stock after purchasing an additional 1,648 shares during the quarter. Microsoft comprises approximately 0.6% of Prairiewood Capital LLC's portfolio, making the stock its 23rd biggest holding. Prairiewood Capital LLC's holdings in Microsoft were worth $2,143,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Norges Bank bought a new position in Microsoft in the fourth quarter valued at $50,664,631,000. Auto Owners Insurance Co lifted its stake in Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant's stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares during the last quarter. Nuveen LLC purchased a new position in shares of Microsoft in the 1st quarter worth about $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Microsoft by 500.0% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant's stock worth $30,840,432,000 after purchasing an additional 49,618,571 shares in the last quarter. Finally, Laurel Wealth Advisors LLC increased its position in shares of Microsoft by 49,640.3% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant's stock valued at $14,905,904,000 after purchasing an additional 29,906,791 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft Stock Down 2.4%

Shares of Microsoft stock opened at $365.12 on Thursday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. Microsoft Corporation has a 52-week low of $356.28 and a 52-week high of $555.45. The company's 50 day moving average price is $411.93 and its 200-day moving average price is $422.73. The stock has a market capitalization of $2.71 trillion, a price-to-earnings ratio of 21.73, a P/E/G ratio of 1.35 and a beta of 1.11.

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

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft's dividend payout ratio is currently 21.67%.

Insider Transactions at Microsoft

In related news, CEO Judson Althoff sold 15,500 shares of the firm's stock in a transaction dated 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 sale, the chief executive officer directly owned 110,477 shares of the company's stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Amy Coleman sold 1,262 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 23,762 shares of company stock worth $10,508,361. Company insiders own 0.03% of the company's stock.

Analysts Set New Price Targets

MSFT has been the subject of a number of recent research reports. Scotiabank dropped their target price on Microsoft from $600.00 to $550.00 and set an "outperform" rating for the company in a research report on Thursday, April 30th. UBS Group reiterated a "buy" rating on shares of Microsoft in a research report on Friday, April 24th. The Goldman Sachs Group reissued a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Arete Research boosted their price objective on shares of Microsoft from $730.00 to $870.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Finally, Piper Sandler reaffirmed an "overweight" rating on shares of Microsoft in a research note on Tuesday, May 26th. Forty-one equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $561.20.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft continues to be framed as a long-term AI winner, with commentary highlighting strong Azure growth, a multi-billion-dollar AI revenue run rate, and the company’s deep role in enterprise AI adoption. Got $1,000? 2 Artificial Intelligence (AI) Stocks to Buy Right Now and Hold for the Next Decade.
• Positive Sentiment: Microsoft’s new 20-year Chevron power deal for a Texas AI data center reinforces confidence that it is still expanding aggressively to support future AI demand, which could help drive long-term cloud revenue. Microsoft Stock In Focus After Inking 20-Yr, 2.67 GW Power Deal With Chevron To Fuel AI Growth
• Positive Sentiment: Microsoft is also getting support from bullish market commentary that says the stock may be oversold and could rebound as investors distinguish between short-term pressure and long-term fundamentals. Dan Ives Believes MSFT Is The Most Oversold Large-Cap Stock, Draws Parallels To 'Negative' Narratives Around GOOGL A Year Ago
• Neutral Sentiment: Microsoft announced a new AI-in-education report and related tools, but this is more of a product/marketing update than a material near-term earnings driver. Microsoft's New AI in Education Report highlights widespread adoption and increasing demand for support
• Negative Sentiment: Fresh legal headlines are pressuring sentiment, as multiple law firms publicized securities class action claims tied to alleged investor harm and Copilot-related disclosures. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Microsoft is facing renewed skepticism around its quantum-computing claims after a Nature-linked critique questioned the scientific basis of its earlier breakthrough announcement. Microsoft's quantum computing technology called into question, again
• Negative Sentiment: Investors are also reacting to broader concerns that heavy AI infrastructure spending could weigh on free cash flow and margin trends, even if it supports future growth. Chamath Says Alphabet, Meta and Microsoft Aren’t Bleeding Cash — They’re Building Moats

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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