Microsoft Corporation $MSFT is Mengis Capital Management Inc.’s 2nd Largest Position

Mengis Capital Management Inc. boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT) by 6.1% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 62,535 shares of the software giant’s stock after buying an additional 3,580 shares during the quarter. Microsoft makes up 5.3% of Mengis Capital Management Inc.’s portfolio, making the stock its 2nd largest position. Mengis Capital Management Inc.’s holdings in Microsoft were worth $30,243,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC grew its stake in Microsoft by 51.3% in 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. Bernzott Capital Advisors bought a new stake in Microsoft during the 4th quarter valued at $34,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft in the 4th quarter worth $36,000. Fairway Wealth LLC lifted its holdings in shares of 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 buying an additional 66 shares during the period. Finally, LSV Asset Management bought a new position in shares of Microsoft during the 4th quarter worth $44,000. 71.13% of the stock is currently owned by institutional investors.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and Chevron announced a 20-year agreement to build Project Kilby, a 2.67-gigawatt natural-gas-powered facility in West Texas to support Microsoft’s AI and cloud data centers, reinforcing long-term demand for Microsoft’s AI infrastructure. Reuters article on Chevron signs power supply deal with Microsoft for Texas data center
• Positive Sentiment: Microsoft’s CEO Satya Nadella called for broader AI access, lower-cost models, and more emphasis on trust and choice, which supports the case that Microsoft is positioning itself to compete beyond the expensive frontier-model race. Yahoo Finance article on Microsoft CEO Calls for Broader AI Access
• Neutral Sentiment: Microsoft was cited as part of a broader Big Tech pullback tied to AI sector rotation and regulatory overhang, suggesting the stock is being dragged by the group rather than by company-specific operating news. Yahoo Finance article on US Equity Indexes Mixed Amid Steep Decline in Communication Services
• Neutral Sentiment: Multiple investor-rights firms announced or promoted a securities class action against Microsoft related to alleged Copilot-related disclosures, adding headline risk but not yet changing the underlying business outlook. GlobeNewswire article on MSFT Alert
• Negative Sentiment: New class-action headlines around Microsoft’s Copilot issues and alleged investor harm may weigh on sentiment by increasing legal uncertainty and keeping attention on prior stock declines. PR Newswire article on MSFT Stockholder Alert

Microsoft Price Performance

MSFT opened at $367.34 on Tuesday. The firm has a market capitalization of $2.73 trillion, a PE ratio of 21.87, a price-to-earnings-growth ratio of 1.37 and a beta of 1.11. 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 business’s 50-day moving average is $412.26 and its two-hundred day moving average is $424.28. Microsoft Corporation has a 1 year low of $356.28 and a 1 year high of $555.45.

Microsoft (NASDAQ:MSFT) last released 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 net margin of 39.34% and a return on equity of 31.94%. The business had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. During the same period in the prior year, the firm posted $3.46 earnings per share. The company’s quarterly revenue was up 18.3% on a year-over-year basis. Research analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The company 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 of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 1.0%. Microsoft’s dividend payout ratio is presently 21.67%.

Insider Buying and Selling at Microsoft

In other news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction on Monday, June 1st. The stock was 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 of the company’s stock, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. 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 stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total value of $1,812,780.00. Following the sale, the executive vice president owned 47,468 shares of the company’s stock, valued at approximately $19,122,009.12. This represents a 8.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,762 shares of company stock worth $10,508,361 over the last three months. Corporate insiders own 0.03% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on MSFT shares. Royal Bank Of Canada restated a “buy” rating on shares of Microsoft in a report on Friday, May 22nd. Barclays reissued an “overweight” rating on shares of Microsoft in a research report on Wednesday, June 3rd. Bank of America began coverage on shares of Microsoft in a report on Tuesday, March 24th. They issued a “buy” rating and a $500.00 price target for the company. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Microsoft from $575.00 to $550.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Finally, New Street Research dropped their price objective on shares of Microsoft from $675.00 to $600.00 and set a “buy” rating on the stock in a research note on Thursday, April 30th. Forty-one analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $561.20.

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).