Vertrix Wealth Management LLC Takes Position in Microsoft Corporation $MSFT

Key Points

• Vertrix Wealth Management LLC opened a new position in Microsoft during the first quarter, buying 16,090 shares worth about $5.96 million. Microsoft now accounts for roughly 2.2% of the firm’s portfolio and is its 11th-largest holding.
• Microsoft’s latest earnings were better than expected, with EPS of $4.27 and revenue of $82.89 billion, both topping analyst estimates. Revenue rose 18.3% year over year, underscoring continued strength in the core business.
• Despite the strong fundamentals, the stock faces mixed signals: analysts remain broadly bullish with a consensus Moderate Buy rating and upside targets, but there is also headline risk from a securities fraud class action related to AI/Copilot claims and ongoing concerns about heavy AI spending.

Vertrix Wealth Management LLC bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 16,090 shares of the software giant's stock, valued at approximately $5,956,000. Microsoft comprises about 2.2% of Vertrix Wealth Management LLC's investment portfolio, making the stock its 11th largest holding.

Other hedge funds have also added to or reduced their stakes in the company. Essex LLC lifted its stake in Microsoft by 2.2% in the first quarter. Essex LLC now owns 13,100 shares of the software giant's stock worth $4,849,000 after purchasing an additional 287 shares during the last quarter. Tcfg Wealth Management LLC lifted its stake in shares of Microsoft by 10.5% in the 1st quarter. Tcfg Wealth Management LLC now owns 11,016 shares of the software giant's stock valued at $4,078,000 after acquiring an additional 1,046 shares during the last quarter. IFM Investors Pty Ltd boosted its holdings in Microsoft by 3.8% during the 1st quarter. IFM Investors Pty Ltd now owns 1,452,610 shares of the software giant's stock valued at $537,713,000 after acquiring an additional 53,379 shares during the period. DeLarme Wealth Management Inc. boosted its holdings in Microsoft by 4.5% during the 1st quarter. DeLarme Wealth Management Inc. now owns 1,962 shares of the software giant's stock valued at $726,000 after acquiring an additional 85 shares during the period. Finally, Partners Wealth Management LLC grew its position in Microsoft by 1.1% during the 1st quarter. Partners Wealth Management LLC now owns 4,997 shares of the software giant's stock worth $1,850,000 after acquiring an additional 56 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Argus lowered its price target on Microsoft but kept a buy rating, still implying roughly 32% upside from current levels. Benzinga / The Fly report on Argus price target cut
• Positive Sentiment: Analysts and market commentary continue to point to Microsoft’s AI and Azure buildout as a long-term driver, with one piece arguing that AI data centers are effectively “pre-sold,” suggesting strong demand for Microsoft’s infrastructure spending. Article on AI spending returns
• Positive Sentiment: Microsoft’s recent earnings showed the company beat expectations on both revenue and EPS, reinforcing that the core business remains healthy despite the stock’s weak price action.
• Neutral Sentiment: Microsoft’s Xbox/gaming unit is facing restructuring under Asha Sharma, including layoffs and tough decisions about studio strategy, which adds uncertainty but could improve efficiency over time. FT article on Xbox changes
• Neutral Sentiment: The Federal Reserve named Xbox CEO Asha Sharma to a jobs-and-productivity task force, keeping Microsoft in the policy conversation around AI and labor, but with no immediate financial impact. Yahoo Finance report on Fed task force
• Negative Sentiment: Multiple law firms issued notices about a securities fraud class action tied to alleged AI/Copilot misrepresentations, increasing headline risk and investor caution. PR Newswire lawsuit notice
• Negative Sentiment: Reports that Starbucks is building internal AI to replace some Microsoft software underscore a broader threat: customers may use AI to reduce reliance on Microsoft’s enterprise products, which could pressure future software revenue. MarketBeat Starbucks AI cost-cutting article
• Negative Sentiment: Microsoft’s AI expansion is also drawing criticism over rising emissions and heavy capital spending, feeding worries that the company is paying more for growth while investors question the payback period. TechXplore emissions report

Microsoft Stock Performance

NASDAQ MSFT opened at $385.10 on Monday. The firm has a market capitalization of $2.86 trillion, a PE ratio of 22.92, a P/E/G ratio of 1.21 and a beta of 1.13. The stock's 50 day moving average is $402.33 and its 200 day moving average is $414.08. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $555.45. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data 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. The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm's quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.46 earnings per share. Research analysts forecast that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid 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 yield of 0.9%. Microsoft's payout ratio is presently 21.67%.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Wells Fargo & Company raised their target price on shares of Microsoft from $625.00 to $650.00 and gave the stock an "overweight" rating in a report on Monday, June 1st. DA Davidson reiterated a "buy" rating and set a $550.00 price target on shares of Microsoft in a report on Monday, July 6th. New Street Research dropped their price target on shares of Microsoft from $675.00 to $600.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. BMO Capital Markets upped their price objective on shares of Microsoft from $500.00 to $515.00 and gave the company an "outperform" rating in a research note on Tuesday, July 7th. Finally, BNP Paribas Exane dropped their target price on shares of Microsoft from $556.00 to $555.00 and set an "outperform" rating for the company in a report on Friday, May 1st. Forty-one equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $559.84.

Insider Buying and Selling

In other news, 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 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. The trade was a 12.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Takeshi Numoto sold 4,500 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of the sale, the executive vice president owned 47,468 shares in the company, valued at $19,122,009.12. The trade was a 8.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 23,762 shares of company stock valued at $10,508,361 over the last quarter. Corporate insiders own 0.03% of the company's stock.

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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