Fulcrum Capital LLC Reduces Position in Microsoft Corporation $MSFT

Fulcrum Capital LLC cut its position in shares of Microsoft Corporation (NASDAQ:MSFT) by 3.1% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 76,130 shares of the software giant’s stock after selling 2,468 shares during the period. Microsoft comprises 8.1% of Fulcrum Capital LLC’s portfolio, making the stock its biggest position. Fulcrum Capital LLC’s holdings in Microsoft were worth $39,431,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in MSFT. AlphaQuest LLC raised its stake in Microsoft by 5.9% in the second quarter. AlphaQuest LLC now owns 342 shares of the software giant’s stock worth $170,000 after buying an additional 19 shares in the last quarter. Red Mountain Financial LLC increased its holdings in shares of Microsoft by 0.7% in the 2nd quarter. Red Mountain Financial LLC now owns 2,761 shares of the software giant’s stock valued at $1,373,000 after acquiring an additional 20 shares during the period. Onyx Financial Advisors LLC raised its position in shares of Microsoft by 0.3% in the 2nd quarter. Onyx Financial Advisors LLC now owns 7,108 shares of the software giant’s stock worth $3,536,000 after acquiring an additional 20 shares in the last quarter. Foundation Wealth Management LLC PA lifted its stake in shares of Microsoft by 1.6% during the 2nd quarter. Foundation Wealth Management LLC PA now owns 1,276 shares of the software giant’s stock worth $635,000 after purchasing an additional 20 shares during the last quarter. Finally, Longfellow Investment Management Co. LLC boosted its position 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 purchasing an additional 20 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

Microsoft Price Performance

Shares of MSFT opened at $401.14 on Monday. The stock has a market cap of $2.98 trillion, a PE ratio of 25.09, a P/E/G ratio of 1.57 and a beta of 1.08. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. Microsoft Corporation has a 1-year low of $344.79 and a 1-year high of $555.45. The firm has a 50-day simple moving average of $468.42 and a two-hundred day simple moving average of $496.10.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.86 by $0.28. The company had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The business’s revenue for the quarter was up 16.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.23 earnings per share. As a group, analysts forecast that Microsoft Corporation will post 13.08 EPS for the current year.

Microsoft Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be paid a $0.91 dividend. The ex-dividend date is Thursday, February 19th. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. Microsoft’s dividend payout ratio (DPR) is currently 22.76%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts and notes highlighting Microsoft’s relatively durable free cash flow versus other hyperscalers are soothing investors worried about AI capex. Why Microsoft’s Cash Flow Sets It Apart from Other Hyperscalers
• Positive Sentiment: Microsoft’s large, funded partner programs (notably the multibillion‑dollar IREN deal) are progressing — IREN secured financing and management says Microsoft prepayments/backing reduce execution risk for deploying AI capacity. That validates Microsoft’s ability to source external infrastructure without bearing all capex. IREN Earnings Were Ugly—Is a Beautiful Future Already Funded?
• Positive Sentiment: Institutional flows show some buyers stepping in (reported stake increases by managers), suggesting bargain hunting after the pullback. Manning & Napier Advisors boosts Microsoft stake
• Positive Sentiment: Government partnerships (UK deepfake detection) reinforce Microsoft’s regulatory/trust positioning for AI tools — a reputational plus that can support enterprise adoption. Britain to work with Microsoft to build deepfake detection system
• Neutral Sentiment: Broader hyperscaler capex is surging (reports of ~$700B combined spending), a structural trend that supports long‑term AI revenue but puts near‑term pressure on free cash flow across the group. Tech AI spending may approach $700 billion this year, but the blow to cash raises red flags
• Neutral Sentiment: Infrastructure market evolution (bitcoin miners pivoting to lease power to AI customers) creates more supplier options for Microsoft to scale capacity without owning all sites — strategic but execution‑dependent. The Great Pivot: Bitcoin Miners Are Becoming AI’s Landlords
• Negative Sentiment: Stifel’s rare downgrade (Hold) and analyst concern about Google/Anthropic competition for Azure weighed on sentiment earlier this week and triggered part of the sell‑off. Microsoft Stock Gets a Rare Downgrade. AI Competition Is Heating Up for Azure.
• Negative Sentiment: Specific execution worries — slower Copilot adoption and signs of softer Azure acceleration in the quarter — remain key risk points investors are watching; these were central to the post‑earnings sell‑off. Microsoft (MSFT) Stock: Should You Buy After 22% Plunge?
• Negative Sentiment: Macro/market psychology: an AI‑led rotation has erased large amounts of Big Tech market value, amplifying volatility for Microsoft even when fundamentals look mixed. Big Tech sees over $1 trillion wiped from stocks as fears of AI bubble ignite sell-off

Insider Transactions at Microsoft

In related news, EVP Takeshi Numoto sold 2,850 shares of Microsoft stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $478.72, for a total transaction of $1,364,352.00. Following the sale, the executive vice president directly owned 55,782 shares in the company, valued at $26,703,959.04. This trade represents a 4.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of the firm’s stock in a transaction dated Tuesday, December 2nd. The stock was sold at an average price of $491.52, for a total value of $6,266,880.00. Following the transaction, the chief executive officer directly owned 129,349 shares in the company, valued at approximately $63,577,620.48. The trade was a 8.97% decrease in their position. The SEC filing for this sale provides additional information. 0.03% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on MSFT. Mizuho reduced their price target on Microsoft from $640.00 to $620.00 and set an “outperform” rating on the stock in a research report on Wednesday, January 21st. New Street Research upped their target price on Microsoft from $670.00 to $675.00 and gave the stock a “buy” rating in a research note on Thursday, January 29th. Wall Street Zen lowered Microsoft from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Barclays reissued a “buy” rating on shares of Microsoft in a report on Friday. Finally, DA Davidson reissued a “buy” rating and set a $650.00 target price on shares of Microsoft in a report on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $596.95.

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).