Hodges Capital Management Inc. Has $10.51 Million Holdings in Microsoft Corporation $MSFT

Hodges Capital Management Inc. decreased its position in shares of Microsoft Corporation (NASDAQ:MSFT) by 46.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 28,392 shares of the software giant’s stock after selling 24,308 shares during the quarter. Hodges Capital Management Inc.’s holdings in Microsoft were worth $10,510,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently modified their holdings of the company. Busey Bank lifted its holdings in shares of Microsoft by 2.0% in the 1st quarter. Busey Bank now owns 497,280 shares of the software giant’s stock worth $184,078,000 after purchasing an additional 9,644 shares in the last quarter. PUREfi Wealth LLC grew its position in Microsoft by 30.0% in the 1st quarter. PUREfi Wealth LLC now owns 13,408 shares of the software giant’s stock valued at $4,963,000 after purchasing an additional 3,094 shares during the period. Collaborative Fund Advisors LLC bought a new stake in Microsoft during the 1st quarter valued at $1,611,000. Compton Financial Group LLC raised its holdings in Microsoft by 13.2% during the first quarter. Compton Financial Group LLC now owns 2,133 shares of the software giant’s stock worth $789,000 after buying an additional 249 shares during the last quarter. Finally, Arbor Investment Advisors LLC lifted its stake in shares of Microsoft by 7.6% in the first quarter. Arbor Investment Advisors LLC now owns 7,522 shares of the software giant’s stock valued at $2,784,000 after buying an additional 529 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Microsoft

In related news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Judson Althoff sold 15,500 shares of the business’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 completion of the transaction, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 23,762 shares of company stock worth $10,508,361 in the last 90 days. Insiders own 0.03% of the company’s stock.

Microsoft Stock Down 1.8%

MSFT opened at $393.82 on Friday. 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 company’s 50-day moving average is $400.28 and its 200 day moving average is $411.30. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $555.45. The firm has a market capitalization of $2.93 trillion, a P/E ratio of 23.44, a PEG ratio of 1.20 and a beta of 1.13.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data 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 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 the consensus estimate of $81.44 billion. During the same period in the prior year, the firm posted $3.46 EPS. The firm’s quarterly revenue was up 18.3% compared to the same quarter last year. Research analysts expect that Microsoft Corporation will post 16.71 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. Stockholders of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is presently 21.67%.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power
• Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey
• Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance
• Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft’s Nadella rips Anthropic’s Fable restrictions in staff meeting: ‘Doesn’t make sense’
• Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic
• Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test
• Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Piper Sandler reiterated an “overweight” rating on shares of Microsoft in a report on Tuesday, May 26th. 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 target price on the stock. Royal Bank Of Canada reaffirmed a “buy” rating on shares of Microsoft in a research report on Friday, May 22nd. Wells Fargo & Company cut their price target on Microsoft from $650.00 to $625.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Rothschild & Co Redburn decreased their price objective on Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Forty-one investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $557.96.

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).