Microsoft Corporation $MSFT is Tevis Investment Management’s 6th Largest Position

Tevis Investment Management raised its stake in Microsoft Corporation (NASDAQ:MSFT) by 41.7% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 14,853 shares of the software giant’s stock after acquiring an additional 4,374 shares during the period. Microsoft makes up 3.1% of Tevis Investment Management’s portfolio, making the stock its 6th largest holding. Tevis Investment Management’s holdings in Microsoft were worth $5,498,000 as of its most recent filing with the SEC.

Several other hedge funds have also bought and sold shares of MSFT. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% during 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 during the last quarter. Bernzott Capital Advisors purchased a new position in Microsoft during the 4th quarter valued at approximately $34,000. Timmons Wealth Management LLC bought a new stake in Microsoft in the 4th quarter worth approximately $36,000. Fairway Wealth LLC increased its stake in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after acquiring an additional 66 shares during the last quarter. Finally, University of Illinois Foundation purchased a new stake in shares of Microsoft during the 2nd quarter worth approximately $50,000. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft Stock Performance

NASDAQ MSFT opened at $389.10 on Tuesday. The business’s 50 day moving average price is $397.52 and its 200-day moving average price is $406.99. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $555.45. The company has a market cap of $2.89 trillion, a P/E ratio of 23.16, a P/E/G ratio of 1.17 and a beta of 1.13. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results 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. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same period last year, the company earned $3.46 earnings per share. Microsoft’s revenue was up 18.3% on a year-over-year basis. Sell-side analysts predict that Microsoft Corporation will post 16.7 earnings per share for the current year.

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is 21.67%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft launched Project Perception, an agentic security platform designed to detect and respond to AI-powered cyberattacks in real time. The company also introduced its first in-house cybersecurity model, MAI-Cyber-1-Flash. The products could strengthen Microsoft’s position in the growing enterprise cybersecurity market and create additional demand for Azure and security software. Microsoft launches its first cybersecurity model and a new agentic cybersecurity system
• Positive Sentiment: Analysts and investors continue to report healthy Azure and broader cloud demand, with AI demand reportedly exceeding available capacity. UBS maintained a Buy rating, while Guggenheim reaffirmed its Buy rating with a $586 price target. Consensus expectations for Wednesday call for approximately $87.42 billion in revenue and $4.21 in earnings per share. Microsoft faces AI capex scrutiny as it prepares to report Q4 results
• Positive Sentiment: Microsoft’s expanded partnership with Mistral and its work on custom chips support the company’s strategy of making Azure a leading platform for enterprise AI workloads. Investors view continued AI adoption and cloud monetization as potential catalysts for the earnings report.
• Neutral Sentiment: The immediate focus is Microsoft’s planned roughly $190 billion in annual capital spending, a reported 61% increase. The investment could support long-term Azure growth, but the market wants evidence that cloud revenue and AI demand are growing fast enough to justify the cost. Options markets imply a potentially large post-earnings move of about 7.24%. Microsoft Plans $190 Billion of Capital Spending This Year
• Negative Sentiment: Investors have recently been less willing to reward strong technology earnings because of concerns about AI spending returns, heavy debt issuance across the AI ecosystem, and margin pressure. Microsoft’s elevated spending could therefore weigh on the stock if Azure growth or forward guidance disappoints.
• Negative Sentiment: Several law firms publicized securities class-action lawsuits alleging investor harm and misleading disclosures related to Microsoft’s Copilot positioning, data silos, and interoperability. The claims are an overhang, although their near-term financial impact is uncertain. Microsoft investor class-action announcement

Insider Buying and Selling

In related news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer directly owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 23,762 shares of company stock valued at $10,508,361. Company insiders own 0.03% of the company’s stock.

Wall Street Analysts Forecast Growth

MSFT has been the subject of a number of research reports. HSBC lowered their target price on Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. Citigroup raised shares of Microsoft from a “market outperform” rating to an “overweight” rating in a research note on Thursday, July 16th. Sanford C. Bernstein reiterated an “outperform” rating and set a $646.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. Citizens Jmp initiated coverage on shares of Microsoft in a research note on Monday, June 1st. They issued an “outperform” rating and a $550.00 price objective for the company. Finally, China Renaissance reduced their target price on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a report on Monday, May 4th. Forty-two equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $554.73.

About Microsoft

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).