Saber Capital Managment LLC Purchases Shares of 2,400 Microsoft Corporation $MSFT

Key Points

• Saber Capital Management disclosed a new fourth-quarter stake in Microsoft, buying 2,400 shares worth about $1.16 million. Microsoft now makes up about 1.0% of the firm’s portfolio.
• Microsoft continues to draw mixed headlines: positive news centers on AI momentum and a quantum-computing milestone, while negative headlines include a shareholder lawsuit over Azure growth disclosures and AI spending.
• The company reported strong quarterly results with EPS of $4.27 on revenue of $82.89 billion, and it also announced a quarterly dividend of $0.91 per share. Analysts remain broadly bullish, with a consensus Moderate Buy rating and an average price target of $561.20.

Saber Capital Managment LLC purchased a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 2,400 shares of the software giant's stock, valued at approximately $1,161,000. Microsoft comprises 1.0% of Saber Capital Managment LLC's portfolio, making the stock its 19th largest position.

Other institutional investors have also made changes to their positions in the company. Longfellow Investment Management Co. LLC increased its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after acquiring an additional 20 shares during the last quarter. Bernzott Capital Advisors acquired a new stake in shares of Microsoft during the fourth quarter valued at about $34,000. Timmons Wealth Management LLC acquired a new position in shares of Microsoft in the fourth quarter valued at approximately $36,000. Fairway Wealth LLC grew its holdings in shares of Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares in the last quarter. Finally, LSV Asset Management acquired a new position in shares of Microsoft in the fourth quarter valued at approximately $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is getting credit for continued AI momentum, including a new coding model, a quantum-computing milestone with Quantinuum, and new availability of NuPlay in the Microsoft Marketplace, all of which reinforce the company’s long-term platform strength. Article: Microsoft (MSFT) and Quantinuum (QNT) Hit Quantum Milestone, Moving Closer to Commercial Reality
• Positive Sentiment: Satya Nadella’s comments that Xbox must become “sustainable” were interpreted as a sign Microsoft is willing to push for better margins and discipline in its gaming business. Article: Microsoft Stock (MSFT) Jumps as CEO Satya Nadella Says Xbox Needs to Become ‘Sustainable’
• Positive Sentiment: Some analysts and commentators continue to argue that Microsoft’s valuation reset could make the stock more attractive, especially if AI, cloud, and quantum investments eventually accelerate growth. Article: Microsoft's Giant's Valuation Reset Creates a Real Dilemma
• Neutral Sentiment: Bill Ackman’s portfolio shifts and broader market chatter around AI leaders reflect ongoing institutional debate about Microsoft’s role in the AI trade, but do not directly change the business outlook. Article: Microsoft or Alphabet: Billionaire Bill Ackman Goes All In on One AI Stock, Dumps the Other
• Negative Sentiment: Microsoft is facing a shareholder lawsuit alleging it failed to disclose slowing Azure growth and the need for heavy AI infrastructure spending, which raises concerns about margins, transparency, and near-term cloud execution. Article: Microsoft sued by shareholders over expenses, cloud business, AI
• Negative Sentiment: Multiple law firms have launched securities-fraud investigations and class-action efforts against Microsoft, adding legal overhang and headline risk for investors. Article: Securities Fraud Investigation Into Microsoft Corporation (MSFT) Announced
• Negative Sentiment: Reports that Microsoft is weighing shutdowns or spin-out options for parts of Xbox, plus insider-selling headlines, reinforce investor worries that some businesses may need restructuring and tighter cost control. Article: Report: Microsoft weighing up spinning off Xbox

Insider Buying and Selling

In related news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares of the company's stock, valued at $50,928,792.23. This represents a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,762 shares of company stock worth $10,508,361 over the last 90 days. 0.03% of the stock is owned by insiders.

Microsoft Stock Up 2.3%

Shares of Microsoft stock opened at $399.76 on Tuesday. Microsoft Corporation has a 52-week low of $356.28 and a 52-week high of $555.45. The company has a 50 day moving average of $411.60 and a 200 day moving average of $428.09. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The company has a market capitalization of $2.97 trillion, a P/E ratio of 23.80, a P/E/G ratio of 1.41 and a beta of 1.11.

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

Microsoft Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid 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 payout ratio is currently 21.67%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Piper Sandler restated an "overweight" rating on shares of Microsoft in a report on Tuesday, May 26th. TD Cowen restated a "buy" rating and issued a $540.00 price objective on shares of Microsoft in a report on Thursday, June 4th. Stifel Nicolaus lifted their price objective on shares of Microsoft from $392.00 to $415.00 and gave the company a "hold" rating in a report on Thursday, April 30th. Oppenheimer restated an "outperform" rating and issued a $515.00 price objective (down from $630.00) on shares of Microsoft in a report on Monday, April 27th. Finally, DA Davidson dropped their price objective on shares of Microsoft from $650.00 to $550.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Forty-one analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target 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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