Zurcher Kantonalbank Zurich Cantonalbank Acquires 461,438 Shares of Microsoft Corporation $MSFT

Key Points

• Zurcher Kantonalbank Zurich Cantonalbank increased its Microsoft holdings by 10.5% in the fourth quarter, buying 461,438 additional shares. The firm now owns 4.85 million shares valued at about $2.34 billion, making Microsoft its third-largest position.
• Microsoft’s latest quarterly results beat expectations, with EPS of $4.27 versus $4.06 expected and revenue of $82.89 billion versus $81.44 billion estimated. Revenue rose 18.3% year over year, underscoring continued strong growth.
• Analysts remain broadly positive on the stock, with an average rating of “Moderate Buy” and an average price target of $562.69. Microsoft also announced a quarterly dividend of $0.91 per share, payable June 11.

Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 10.5% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 4,845,330 shares of the software giant's stock after purchasing an additional 461,438 shares during the period. Microsoft accounts for 5.1% of Zurcher Kantonalbank Zurich Cantonalbank's portfolio, making the stock its 3rd biggest position. Zurcher Kantonalbank Zurich Cantonalbank owned approximately 0.07% of Microsoft worth $2,343,298,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. WFA Asset Management Corp increased its holdings in shares of Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant's stock worth $427,000 after acquiring an additional 216 shares during the period. Ironwood Wealth Management LLC. increased its holdings in shares of Microsoft by 0.3% in the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant's stock worth $5,658,000 after acquiring an additional 38 shares during the period. Discipline Wealth Solutions LLC increased its holdings in shares of Microsoft by 410.4% in the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant's stock worth $1,144,000 after acquiring an additional 2,138 shares during the period. Wealth Group Ltd. increased its holdings in shares of Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant's stock worth $1,000,000 after acquiring an additional 28 shares during the period. Finally, Eagle Capital Management LLC increased its holdings in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant's stock worth $9,735,000 after acquiring an additional 96 shares during the period. 71.13% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Microsoft

In related news, Director John W. Stanton purchased 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The stock was acquired at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 of the company's stock, valued at $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.03% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on MSFT shares. Sanford C. Bernstein increased their target price on shares of Microsoft from $641.00 to $646.00 and gave the company an "outperform" rating in a research report on Thursday, April 30th. DZ Bank reiterated a "buy" rating on shares of Microsoft in a research report on Thursday, April 30th. William Blair reiterated an "outperform" rating on shares of Microsoft in a research report on Monday, March 9th. Jefferies Financial Group reiterated a "buy" rating on shares of Microsoft in a research report on Monday, May 4th. Finally, Rothschild & Co Redburn decreased their target price on shares of Microsoft from $450.00 to $400.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $562.69.

Microsoft Stock Performance

Shares of MSFT opened at $407.77 on Wednesday. Microsoft Corporation has a 12-month low of $356.28 and a 12-month high of $555.45. The firm's 50 day moving average is $397.60 and its 200-day moving average is $443.14. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The stock has a market capitalization of $3.03 trillion, a P/E ratio of 24.27, a P/E/G ratio of 1.49 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, beating the consensus estimate 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 net margin of 39.34% and a return on equity of 31.94%. The firm's quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.46 EPS. Equities research analysts anticipate that Microsoft Corporation will post 16.76 EPS for the current fiscal year.

Microsoft Dividend Announcement

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

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Several analysts and market commentators reiterated a bullish long-term view, pointing to Microsoft’s scale, cash flow, and AI positioning as reasons the stock could still be undervalued. Microsoft Stock Still Looks Undervalued Based on FCF Projections, Despite Higher Capex
• Positive Sentiment: Market interest in Microsoft remains strong, with articles highlighting bullish options activity and investor confidence in its long-term position in AI and enterprise software. Unusual Call Options in Microsoft Shows Investors are Bullish on MSFT
• Positive Sentiment: Microsoft CEO Satya Nadella’s testimony in the Elon Musk-OpenAI trial reinforced the company’s central role in AI and suggested Microsoft continues to have influence over OpenAI’s strategy and economics. Microsoft CEO Testifies About Sam Altman’s Firing in Elon Musk Megatrial
• Neutral Sentiment: The ongoing Musk v. OpenAI courtroom drama is keeping Microsoft in the headlines, but the direct business impact is still unclear. Inside Sam Altman's Dramatic Court Testimony: 'Complicated' Elon Musk Feelings, 'Hair-Raising' Tesla Talks And The Microsoft Temptation
• Neutral Sentiment: Reports that the U.S. Commerce Department removed details about an AI security-testing arrangement involving Microsoft did not provide enough clarity to gauge a meaningful financial effect. Microsoft, Google, xAI security test details deleted from US government website
• Negative Sentiment: Investors are focused on new details that OpenAI’s payments to Microsoft may be capped at $38 billion through 2030, limiting the upside from one of Microsoft’s most important AI partnerships versus earlier expectations. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Negative Sentiment: Multiple hedge funds reportedly trimmed Microsoft positions, which can add to near-term caution even if the stakes sold were not necessarily large enough to change the long-term story. Vulcan Value Partners trims Microsoft stake, sells 32,587 shares
• Negative Sentiment: A report that Microsoft’s Kenyan data center was delayed amid payment demands suggests some execution friction in its infrastructure expansion plans. Microsoft's Kenyan data center delayed on payment demands: report

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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