Urban Wealth Management LLC Sells 3,893 Shares of Microsoft Corporation $MSFT

Key Points

• Urban Wealth Management LLC cut its Microsoft stake by 46.4% in the first quarter, selling 3,893 shares and leaving it with 4,499 shares valued at about $1.67 million.
• Microsoft reported strong quarterly results, with EPS of $4.27 and revenue of $82.89 billion, both ahead of estimates. Revenue rose 18.3% year over year.
• The company is drawing attention for its AI expansion, including the launch of a $2.5 billion Microsoft Frontier Company to help customers adopt AI, while analysts maintain a generally positive outlook with a consensus rating of Moderate Buy.

Urban Wealth Management LLC lowered its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 46.4% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 4,499 shares of the software giant's stock after selling 3,893 shares during the quarter. Microsoft makes up about 1.7% of Urban Wealth Management LLC's investment portfolio, making the stock its 16th largest holding. Urban Wealth Management LLC's holdings in Microsoft were worth $1,666,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in the business. Longfellow Investment Management Co. LLC increased its position 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 purchasing an additional 20 shares during the period. Bernzott Capital Advisors purchased a new stake in shares of Microsoft in the 4th quarter worth about $34,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft in the 4th quarter worth about $36,000. Fairway Wealth LLC boosted its stake in shares of Microsoft by 287.0% during the 4th 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 bought a new stake in shares of Microsoft during the 4th quarter valued at about $44,000. 71.13% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on MSFT shares. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Microsoft from $575.00 to $550.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Stifel Nicolaus cut their price objective on Microsoft from $415.00 to $400.00 and set a "hold" rating on the stock in a research report on Thursday, June 25th. DZ Bank reiterated a "buy" rating on shares of Microsoft in a report on Thursday, April 30th. Cantor Fitzgerald reissued an "overweight" rating and issued a $502.00 target price on shares of Microsoft in a research report on Thursday, June 4th. Finally, Tigress Financial raised their target price on Microsoft from $595.00 to $680.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Forty-one investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $560.86.

Microsoft Price Performance

MSFT opened at $390.49 on Friday. The firm has a market cap of $2.90 trillion, a PE ratio of 23.24, a P/E/G ratio of 1.20 and a beta of 1.13. The stock has a 50-day moving average price of $406.99 and a 200-day moving average price of $418.05. Microsoft Corporation has a 1 year low of $349.20 and a 1 year 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.

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

Microsoft Dividend Announcement

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 given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. Microsoft's dividend payout ratio (DPR) is 21.67%.

Insider Buying and Selling

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 directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction on 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 completion of the sale, the chief executive officer directly owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,762 shares of company stock worth $10,508,361 in the last three months. Insiders own 0.03% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft launched Microsoft Frontier Company, a new $2.5 billion AI implementation business that will embed about 6,000 engineers, consultants and support specialists inside customer operations to speed enterprise AI adoption. Reuters: Microsoft launches firm to help companies adopt AI with $2.5 billion
• Positive Sentiment: Several reports and commentary said the new AI unit reinforces Microsoft’s leadership in enterprise AI and could drive more Azure and Copilot usage, helping explain the stock’s strength. GeekWire: Microsoft announces $2.5B ‘Frontier Company' to embed AI engineers inside customers
• Positive Sentiment: Microsoft’s enterprise AI momentum was also supported by a new five-year deal with Haleon to expand AI, cloud and data technology across the health company’s operations. MarketBeat: Meta’s AI Compute Push Could Turn Its Massive CapEx Bill Into a Competitive Weapon
• Neutral Sentiment: Microsoft is reportedly preparing another round of layoffs, potentially affecting thousands of workers in sales, consulting and Xbox, as it keeps pouring money into AI infrastructure. This may help costs over time, but it also highlights ongoing restructuring and margin pressure. Reuters: Microsoft partners with Singapore's Lightstorm to build India-Southeast Asia undersea cable
• Negative Sentiment: Investor sentiment is also being weighed by a securities fraud class action and related deadline reminders, which add legal uncertainty to the name. PRNewswire: Microsoft Corporation (MSFT) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit

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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