Rare Wolf Capital LLC Takes $9.77 Million Position in Microsoft Corporation $MSFT

Rare Wolf Capital LLC bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT) during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund bought 20,203 shares of the software giant’s stock, valued at approximately $9,771,000. Microsoft comprises about 6.1% of Rare Wolf Capital LLC’s portfolio, making the stock its 3rd biggest holding.

A number of other large investors have also added to or reduced their stakes in MSFT. Harbour Wealth Management Group Inc. acquired a new stake in Microsoft during the 4th quarter valued at $2,784,000. Lexington Hill Partners LLC bought a new position in shares of Microsoft in the fourth quarter valued at about $961,000. First Growth Capital LLC acquired a new stake in shares of Microsoft during the 4th quarter worth about $2,585,000. Axxcess Wealth Management LLC boosted its holdings in shares of Microsoft by 14.6% during the 4th quarter. Axxcess Wealth Management LLC now owns 242,458 shares of the software giant’s stock worth $116,398,000 after buying an additional 30,833 shares during the period. Finally, Birchwood Financial Partners Inc. bought a new stake in shares of Microsoft during the 4th quarter worth about $3,572,000. Institutional investors own 71.13% of the company’s stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is reportedly building a more than $1 billion annual AI and cloud business with ByteDance in China, underscoring strong demand for its Azure and OpenAI-related services. Microsoft Scores Massive China AI Win as TikTok Parent Eyes $1 Billion Spend
• Positive Sentiment: OpenAI’s push to monetize ChatGPT with ads highlights continued AI commercialization, which may support sentiment around Microsoft’s OpenAI stake and AI strategy. OpenAI Brings ChatGPT Ads to Japan
• Neutral Sentiment: Microsoft is said to be moving Copilot to usage-based pricing and exploring cheaper AI models, a sign it is trying to improve margins as AI infrastructure costs rise. Microsoft (MSFT) Moves Copilot To Usage Based Pricing As AI Costs Rise
• Negative Sentiment: Several reports say investors are increasingly worried about Microsoft’s AI valuation, spending, and monetization, which is weighing on the stock. Microsoft Faces AI Expectations Test
• Negative Sentiment: Microsoft is also facing securities class-action lawsuits and investigations over alleged misleading AI-related statements, adding legal uncertainty. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Reports that Microsoft walked away from a potential $3 billion Oracle cloud deal suggest possible friction in securing additional cloud capacity. Why Microsoft Stock Slumped Today

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. President Capital increased their price target on shares of Microsoft from $500.00 to $520.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Citigroup started coverage on Microsoft in a research report on Monday, June 1st. They issued a “market outperform” rating on the stock. Tigress Financial increased their target price on Microsoft from $595.00 to $680.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. DZ Bank reissued a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. Finally, Citizens Jmp started coverage on Microsoft in a research note on Monday, June 1st. They issued an “outperform” rating and a $550.00 price target for the company. Forty-one investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $561.20.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $379.40 on Friday. Microsoft Corporation has a 12-month low of $356.28 and a 12-month high of $555.45. The company’s 50 day moving average price is $412.27 and its two-hundred day moving average price is $425.90. The firm has a market cap of $2.82 trillion, a PE ratio of 22.58, a PEG ratio of 1.36 and a beta of 1.11. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The company 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 period in the previous year, the business earned $3.46 earnings per share. Equities research analysts predict that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 1.0%. Microsoft’s payout ratio is currently 21.67%.

Insider Buying and Selling at Microsoft

In related news, EVP Amy Coleman sold 1,262 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Takeshi Numoto sold 4,500 shares of the firm’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of 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 position. The disclosure for this sale is available in the SEC filing. Insiders sold 23,762 shares of company stock valued at $10,508,361 in the last three months. Corporate insiders own 0.03% of the company’s stock.

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).