Watershed Private Wealth LLC Acquires 2,352 Shares of Microsoft Corporation $MSFT

Key Points

• Watershed Private Wealth LLC raised its Microsoft stake by 45.1%, buying 2,352 shares to hold 7,563 shares valued at $3,658,000, making MSFT its 23rd-largest holding.
• Microsoft reported strong quarterly results—EPS $4.27 vs. $4.06 expected and revenue $82.89B (up 18.3%)—with 40%+ Azure/cloud growth and accelerating AI monetization, though elevated capex guidance (roughly $190B) is weighing on near-term free cash flow and valuations.
• Insider and analyst activity: EVP Kathleen Hogan sold 12,321 shares (~$5.05M) while director John W. Stanton bought 5,000 shares; analysts issued mixed price-target changes but the consensus rating remains a "Moderate Buy" with a $556.15 target and institutional ownership at ~71%.

Watershed Private Wealth LLC raised its holdings in Microsoft Corporation (NASDAQ:MSFT - Free Report) by 45.1% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 7,563 shares of the software giant's stock after buying an additional 2,352 shares during the quarter. Microsoft accounts for approximately 1.1% of Watershed Private Wealth LLC's holdings, making the stock its 23rd biggest holding. Watershed Private Wealth LLC's holdings in Microsoft were worth $3,658,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC boosted its position in Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after buying an additional 20 shares in the last quarter. Bayforest Capital Ltd acquired a new position in Microsoft in the third quarter valued at about $38,000. Sellwood Investment Partners LLC acquired a new position in Microsoft in the third quarter valued at about $49,000. University of Illinois Foundation acquired a new position in Microsoft in the second quarter valued at about $50,000. Finally, Daytona Street Capital LLC acquired a new position in Microsoft in the fourth quarter valued at about $50,000. Institutional investors own 71.13% of the company's stock.

Insider Activity at Microsoft

In other news, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction that occurred 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 owned 137,933 shares in the company, valued at $56,486,322.16. The trade was a 8.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director John W. Stanton purchased 5,000 shares of the stock in a transaction dated Wednesday, February 18th. The shares were acquired at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the transaction, the director owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.03% of the stock is owned by insiders.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 results and the earnings call highlighted 40%+ Azure/cloud growth and accelerating AI monetization, giving investors confidence in the company’s long-term AI revenue runway. Microsoft Earnings Call: AI Growth Surges, Margins Squeezed
• Positive Sentiment: The U.S. Pentagon signed agreements allowing Microsoft’s AI tech on classified networks — a credibility and contract win that can translate into long-term, high‑value government revenue. Pentagon inks deals with Nvidia, Microsoft and AWS to deploy AI on classified networks
• Positive Sentiment: Analyst actions include several price‑target raises and reaffirmations (Benchmark raised to $525, others keep buy ratings), signaling continued bullish conviction among some buy‑side firms. Microsoft Corp. (MSFT) Price Target Increased to $525 by Benchmark
• Positive Sentiment: Product catalyst: rollout of Windows 11’s new Xbox Mode supports consumer engagement and adds a near‑term, tangible product story for the stock. Microsoft Stock (MSFT) Jumps on Windows 11 Xbox Mode Rollout
• Neutral Sentiment: The revised Microsoft–OpenAI relationship (ending exclusivity) is being parsed by markets: it reduces some exclusivity upside but clarifies commercial terms that could be neutral-to-positive longer term depending on monetization. Microsoft and OpenAI Just Ended Their Exclusive Deal, and Wall Street Is Trying Hard to Shake Off the Negatives for MSFT Stock
• Neutral Sentiment: Commentary from TV/hosts (e.g., Jim Cramer) describes MSFT as attractively valued but notes limited new messaging on the call — this shapes retail sentiment but isn’t new fundamental data. Jim Cramer on Microsoft: “Maybe You Can Consider It Cheap, But It’s Software”
• Negative Sentiment: Investors remain focused on record capex (roughly $190B guidance) and the near‑term hit to free cash flow — that spending narrative caused the post‑earnings pullback and continues to cap the multiple. Beat meets bill: MSFT stock slips on AI expenditure concerns despite strong Q3
• Negative Sentiment: Goldman’s note flagging extreme cloud cash burn and other outlets highlighting the industry’s rising AI capex raises concern that spending could pressure margins and returns if monetization lags. Microsoft, Amazon On Watch ― Goldman Sounds Alarm On 90% Cloud Cash Burn
• Negative Sentiment: Some brokers trimmed price targets or cut upside on valuation as they bake in capex risk (HSBC cut its target), keeping a portion of the market cautious. HSBC Cuts Microsoft Price Target to $571 From $593

Microsoft Stock Up 1.6%

Shares of NASDAQ MSFT opened at $414.41 on Friday. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45. The firm's 50-day moving average is $395.28 and its 200-day moving average is $447.91. The company has a current ratio of 1.28, a quick ratio of 1.38 and a debt-to-equity ratio of 0.08. The firm has a market capitalization of $3.08 trillion, a PE ratio of 24.67, a price-to-earnings-growth ratio of 1.56 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, topping the consensus estimate 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 analysts' expectations of $81.44 billion. During the same quarter in the previous year, the company earned $3.46 EPS. Microsoft's revenue was up 18.3% on a year-over-year basis. Equities analysts expect that Microsoft Corporation will post 16.68 EPS for the current year.

Microsoft Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, May 21st. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. Microsoft's payout ratio is currently 21.67%.

Analyst Ratings Changes

A number of research firms have commented on MSFT. Raymond James Financial reduced their price target on shares of Microsoft from $580.00 to $540.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 28th. Rothschild & Co Redburn reduced their price target on shares of Microsoft from $450.00 to $400.00 and set a "neutral" rating on the stock in a research report on Thursday, April 23rd. The Goldman Sachs Group restated a "buy" rating on shares of Microsoft in a research report on Thursday. Benchmark restated a "buy" rating and issued a $525.00 price target (up from $450.00) on shares of Microsoft in a research report on Tuesday, April 28th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Microsoft in a report on Friday, April 24th. One investment analyst has 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's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $556.15.

Microsoft Company 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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