Windward Capital Management Co. CA Reduces Holdings in Microsoft Corporation $MSFT

Key Points

• Windward Capital Management cut its Microsoft stake by 6.7% in the fourth quarter, selling 1,832 shares and leaving it with 25,475 shares worth about $12.3 million.
• Microsoft remains heavily owned by institutions, with 71.13% of shares held by hedge funds and other investors, even as several smaller firms recently added or initiated positions.
• The article also highlights ongoing business momentum: Microsoft recently beat quarterly earnings estimates, announced a $0.91 quarterly dividend, and continues to draw bullish analyst coverage with a consensus Moderate Buy rating and a price target around $560.88.

Windward Capital Management Co. CA trimmed its position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 6.7% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 25,475 shares of the software giant's stock after selling 1,832 shares during the quarter. Microsoft makes up approximately 1.0% of Windward Capital Management Co. CA's investment portfolio, making the stock its 29th largest position. Windward Capital Management Co. CA's holdings in Microsoft were worth $12,320,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in MSFT. 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 worth $29,000 after purchasing an additional 20 shares in the last quarter. Bayforest Capital Ltd purchased a new stake in shares of Microsoft during the third quarter worth approximately $38,000. Fairway Wealth LLC increased its position in shares of Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after purchasing an additional 66 shares in the last quarter. LSV Asset Management purchased a new stake in Microsoft in the 4th quarter valued at $44,000. Finally, Sellwood Investment Partners LLC purchased a new stake in Microsoft in the 3rd quarter valued at $49,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s Azure cloud business is still growing strongly, with recent commentary pointing to about 40% growth, reinforcing the company’s AI and cloud leadership thesis. 9 Best Cloud Stocks to Buy as Azure Growth Hits 40%
• Positive Sentiment: The jury defeat for Elon Musk’s lawsuit against OpenAI removed a legal overhang around Microsoft’s AI partner ecosystem and was viewed as a bullish development for MSFT’s broader AI strategy. Musk loses blockbuster OpenAI suit as jury says too late
• Positive Sentiment: New product news around Surface devices for business and AI workloads suggests Microsoft is still pushing enterprise hardware and AI adoption across its ecosystem. Microsoft launches Surface Pro 12 and Surface Laptop 8 with Intel chips
• Neutral Sentiment: Microsoft also unveiled enterprise Surface models powered by Intel Core Ultra chips, which is a product refresh but not likely a major near-term stock catalyst on its own. Microsoft (MSFT) Unveils Enterprise Surface Lineup Powered by Intel Core Ultra Series 3
• Neutral Sentiment: LinkedIn said it will lay off more than 600 employees, a cost-cutting move that may help margins but also signals restructuring inside Microsoft’s professional networking unit. Panic in California as LinkedIn announces hundreds of layoffs
• Negative Sentiment: Some investors are focusing on concerns about mixed Xbox messaging, which may be weighing on sentiment around Microsoft’s gaming segment. Microsoft Stock (MSFT) Slips on Mixed Xbox Messaging
• Negative Sentiment: Another report highlighted a Windows drivers issue that could hurt battery life on Windows 11 laptops, adding a small but negative product-quality overhang. “Blind Spot” in Windows Drivers Leads to Sub-Par Battery Life, Microsoft Stock NASDAQ: MSFT Slips
• Negative Sentiment: Insider selling by EVP Amy Coleman, while modest, can also dampen sentiment when the stock is already under pressure. Microsoft NASDAQ: MSFT EVP Amy Coleman Sells 1,262 Shares

Insider Buying and Selling at Microsoft

In other news, EVP Amy Coleman sold 1,262 shares of the company's stock in a transaction on Thursday, May 14th. The stock was 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 of the company's stock, valued at $18,922,874.02. This represents a 2.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the company's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the transaction, the executive vice president directly owned 137,933 shares in the company, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.03% of the company's stock.

Microsoft Stock Performance

Shares of Microsoft stock opened at $417.42 on Wednesday. Microsoft Corporation has a 52 week low of $356.28 and a 52 week high of $555.45. The business's fifty day simple moving average is $398.60 and its 200-day simple moving average is $439.04. The firm has a market cap of $3.10 trillion, a PE ratio of 24.85, a price-to-earnings-growth ratio of 1.53 and a beta of 1.10. 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 announced its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, beating the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same quarter in the prior year, the company posted $3.46 EPS. The company's quarterly revenue was up 18.3% on a year-over-year basis. Equities analysts forecast that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

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 paid a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft's dividend payout ratio is 21.67%.

Analyst Upgrades and Downgrades

MSFT has been the subject of several analyst reports. President Capital upped their target price on Microsoft from $500.00 to $520.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Arete Research upped their target price on Microsoft from $730.00 to $870.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. The Goldman Sachs Group restated a "buy" rating on shares of Microsoft in a report on Thursday, April 30th. Barclays restated a "buy" rating on shares of Microsoft in a report on Thursday, May 7th. Finally, TD Cowen upgraded Microsoft from a "buy" rating to a "hold" rating in a report on Tuesday, May 5th. Thirty-nine research analysts have rated the stock with a Buy rating and seven 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 $560.88.

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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