Cavalier Investments LLC Reduces Stake in Microsoft Corporation $MSFT

Cavalier Investments LLC reduced its stake in shares of Microsoft Corporation (NASDAQ:MSFT) by 25.5% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 27,671 shares of the software giant’s stock after selling 9,462 shares during the quarter. Microsoft comprises about 1.1% of Cavalier Investments LLC’s investment portfolio, making the stock its 11th biggest position. Cavalier Investments LLC’s holdings in Microsoft were worth $13,302,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Ceeto Capital Group LLC lifted its stake in shares of Microsoft by 5.1% in the 3rd quarter. Ceeto Capital Group LLC now owns 24,855 shares of the software giant’s stock valued at $12,874,000 after purchasing an additional 1,200 shares during the last quarter. Cinctive Capital Management LP increased its position in shares of Microsoft by 148.4% during the 3rd quarter. Cinctive Capital Management LP now owns 25,918 shares of the software giant’s stock valued at $13,424,000 after purchasing an additional 15,485 shares during the last quarter. Circle Wealth Management LLC increased its position in shares of Microsoft by 1.5% during the 3rd quarter. Circle Wealth Management LLC now owns 107,830 shares of the software giant’s stock valued at $55,851,000 after purchasing an additional 1,619 shares during the last quarter. Community Bank N.A. raised its holdings in Microsoft by 0.5% during the 3rd quarter. Community Bank N.A. now owns 58,115 shares of the software giant’s stock valued at $30,101,000 after buying an additional 295 shares during the period. Finally, Clark Capital Management Group Inc. lifted its position in Microsoft by 11.2% in the third quarter. Clark Capital Management Group Inc. now owns 751,022 shares of the software giant’s stock worth $388,992,000 after buying an additional 75,419 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft has a near-term product catalyst: a $99/month AI tools bundle (includes Copilot capabilities) with a May 1 launch that could drive commercial adoption and recurring ARR growth. Microsoft Is Racing to Beat Claude Cowork. A Big Catalyst for MSFT Stock Is Coming May 1.
• Positive Sentiment: Microsoft is expanding into healthcare AI with Copilot Health (can read medical records and provide personalized insights) and partner integrations, opening a large vertical market and cross‑sell opportunities for Azure and Copilot. Microsoft launched a new healthcare chatbot
• Positive Sentiment: Microsoft 365 E7 bundles Copilot, Anthropic’s Claude Cowork and security tools — a premium enterprise offering that can lift average revenue per user for large customers. Analysts continue to highlight AI-driven revenue upside. Microsoft’s New E7 AI Suite And Healthcare Push Shape Long-Term Outlook
• Neutral Sentiment: Xbox/product cycle news: Microsoft is advancing Project Helix (next‑gen Xbox) but prototypes won’t reach developers until 2027 — positive for long-term console moat but not an immediate revenue driver. Microsoft’s Next Xbox Moves Closer to Reality: What It Means for MSFT Stock
• Neutral Sentiment: Gaming/graphics tech progress (DirectX/advanced shader delivery with NVIDIA/Intel) reduces frictions for PC gaming and helps Xbox/Windows gaming competitiveness but is a more gradual, longer-term tailwind. DirectX Gears Up For ML Era On Windows
• Negative Sentiment: Investor concern about huge AI data‑center capex and public pushback over electricity/costs is weighing on the stock; large lease and buildouts boost growth but increase near‑term cash burn. Who is really footing the AI energy bill? Inside the debate about data center electricity costs
• Negative Sentiment: Security scare: reports of a new vulnerability in Microsoft Authenticator have spooked investors and triggered selling pressure tied to identity/security risk. New Vulnerability in Microsoft Authenticator Sends Microsoft Stock Sliding
• Negative Sentiment: Leadership change: Rajesh Jha, a long‑time head of experiences and devices (Office/Copilot products), announced retirement — creates short‑term execution/transition uncertainty. Microsoft’s Rajesh Jha, head of experiences and devices unit, to retire
• Negative Sentiment: Options and flows show increased demand for downside protection (put-call skew steepening), reflecting trader caution after the pullback. Option traders moderately bearish in Microsoft with shareslittle changed

Microsoft Price Performance

NASDAQ MSFT opened at $395.55 on Monday. The company has a market cap of $2.94 trillion, a PE ratio of 24.74, a P/E/G ratio of 1.55 and a beta of 1.10. The firm’s 50 day moving average price is $427.46 and its 200-day moving average price is $475.81. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. Microsoft Corporation has a 52-week low of $344.79 and a 52-week high of $555.45.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, topping analysts’ consensus estimates of $3.86 by $0.28. The company had revenue of $81.27 billion during the quarter, compared to the consensus estimate of $80.28 billion. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. Microsoft’s revenue for the quarter was up 16.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.23 earnings per share. Sell-side analysts forecast that Microsoft Corporation will post 13.08 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. Stockholders of record on Thursday, May 21st will be issued a $0.91 dividend. The ex-dividend date is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s dividend payout ratio (DPR) is currently 22.76%.

Insider Buying and Selling at Microsoft

In related news, Director John W. Stanton purchased 5,000 shares of Microsoft stock in a transaction dated Wednesday, February 18th. The stock was purchased at an average cost 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 approximately $33,339,651.75. The trade was a 6.34% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the company’s stock in a transaction on Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following 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. Insiders own 0.03% of the company’s stock.

Wall Street Analyst Weigh In

MSFT has been the subject of several recent analyst reports. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Microsoft in a research note on Thursday, February 12th. Melius Research set a $430.00 target price on shares of Microsoft in a research note on Monday, February 9th. Barclays restated an “overweight” rating on shares of Microsoft in a report on Monday, March 9th. Scotiabank dropped their price target on shares of Microsoft from $650.00 to $600.00 and set a “sector outperform” rating for the company in a research note on Thursday, January 29th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $590.00 price target on shares of Microsoft in a report on Thursday, January 29th. Two equities research analysts have rated the stock with a Strong Buy rating, forty have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus target price of $591.95.

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).