Microsoft Corporation $MSFT is KCM Investment Advisors LLC’s 4th Largest Position

KCM Investment Advisors LLC decreased its holdings in Microsoft Corporation (NASDAQ:MSFT) by 3.0% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 289,473 shares of the software giant’s stock after selling 8,999 shares during the quarter. Microsoft comprises about 3.6% of KCM Investment Advisors LLC’s portfolio, making the stock its 4th biggest position. KCM Investment Advisors LLC’s holdings in Microsoft were worth $107,154,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in MSFT. Markel Group Inc. boosted its position in shares of Microsoft by 0.4% in the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock valued at $199,014,000 after acquiring an additional 1,950 shares during the period. Bessemer Group Inc. increased its position in Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after acquiring an additional 537,634 shares during the period. Taylor Securities Services Inc. acquired a new stake in Microsoft in the 4th quarter worth about $2,616,000. Werba Rubin Papier Wealth Management raised its stake in Microsoft by 15.7% in the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock worth $6,041,000 after purchasing an additional 1,698 shares in the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. boosted its holdings in Microsoft by 138.8% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after purchasing an additional 788,297 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. Jefferies Financial Group reaffirmed a “buy” rating on shares of Microsoft in a report on Monday, May 4th. Evercore set a $528.00 price target on Microsoft in a research note on Thursday, July 30th. HSBC reduced their price target on Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a report on Thursday, July 30th. Finally, Robert W. Baird cut their target price on Microsoft from $540.00 to $500.00 and set an “outperform” rating for the company in a research report on Wednesday, April 15th. Forty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $560.27.

Insider Activity at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 37,310 shares of company stock worth $17,256,219. 0.03% of the stock is owned by corporate insiders.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL
• Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target
• Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft
• Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand
• Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap?
• Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published

Microsoft Price Performance

Shares of MSFT opened at $492.43 on Thursday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.66 trillion, a PE ratio of 27.42, a PEG ratio of 1.62 and a beta of 1.11. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The business has a 50-day simple moving average of $408.32 and a two-hundred day simple moving average of $407.67.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period last year, the firm posted $3.65 earnings per share. Analysts anticipate that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.

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).