Berkshire Money Management Inc. Invests $3.14 Million in Microsoft Corporation $MSFT

Berkshire Money Management Inc. bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 6,498 shares of the software giant’s stock, valued at approximately $3,142,000. Microsoft accounts for about 0.3% of Berkshire Money Management Inc.’s investment portfolio, making the stock its 28th largest holding.

Other institutional investors and hedge funds also recently modified their holdings of the company. Longfellow Investment Management Co. LLC raised its position in shares of Microsoft by 51.3% during 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 during the period. Bayforest Capital Ltd acquired a new position in Microsoft during the third quarter valued at $38,000. Sellwood Investment Partners LLC acquired a new position in Microsoft during the third quarter valued at $49,000. University of Illinois Foundation acquired a new position in Microsoft during the second quarter valued at $50,000. Finally, Daytona Street Capital LLC acquired a new position in Microsoft during the fourth quarter valued at $50,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms recently weighed in on MSFT. Mizuho dropped their price target on Microsoft from $620.00 to $515.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 14th. Dbs Bank dropped their price target on Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. Morgan Stanley reissued an “overweight” rating on shares of Microsoft in a research report on Thursday, January 29th. Scotiabank dropped their price target on Microsoft from $600.00 to $550.00 and set an “outperform” rating on the stock in a research report on Thursday, April 30th. Finally, DA Davidson dropped their price target on Microsoft from $650.00 to $550.00 and set a “buy” rating on the stock in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $562.69.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts and market commentary continued to argue that Microsoft remains a long-term AI winner, with several notes saying the stock still looks undervalued and that its AI/Cloud thesis remains intact. Microsoft’s (MSFT) Q3 Revealed 3 Things that Matter for the AI Bull Case
• Positive Sentiment: Microsoft CEO Satya Nadella’s testimony in the Musk v. Altman trial reinforced Microsoft’s early backing of OpenAI and its expected payoff from that investment, which some investors view as supportive of the company’s AI strategy. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Positive Sentiment: OpenAI reportedly capped revenue-sharing payments to Microsoft at $38 billion through 2030, which may be read as a structural clarification that still preserves a major economic relationship while supporting OpenAI’s IPO path. Microsoft secures structural wins in OpenAI revenue cap deal, Wedbush says
• Neutral Sentiment: Microsoft was mentioned in broader AI-market commentary about whether AI spending is generating enough ROI, which adds to sentiment volatility but does not directly change fundamentals. Chamath Warns Companies Must Prove ROI from AI Within ‘500 Days’
• Neutral Sentiment: Several reports focused on Microsoft’s role in OpenAI’s founding and governance in the Musk lawsuit; these headlines keep the stock in the news, but the market impact is mostly indirect unless they lead to regulatory or contractual changes. How Much Power Did Microsoft Have Over OpenAI?
• Negative Sentiment: The biggest near-term overhang is the perception that Microsoft may have less upside from OpenAI than previously assumed, after reports that revenue-sharing is capped far below earlier projections. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Negative Sentiment: Nadella’s testimony in the Musk trial also highlighted how closely Microsoft is tied to OpenAI’s governance fight, keeping legal and reputational risks in focus for investors. Microsoft CEO Satya Nadella takes stand in Musk v. Altman trial

Insider Activity

In related news, Director John W. Stanton purchased 5,000 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was bought at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the purchase, the director owned 83,905 shares in the company, valued at $33,339,651.75. The trade was a 6.34% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of the company’s stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following the sale, the executive vice president owned 137,933 shares of the company’s stock, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.03% of the company’s stock.

Microsoft Stock Performance

Shares of MSFT stock opened at $407.77 on Wednesday. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. Microsoft Corporation has a fifty-two week low of $356.28 and a fifty-two week high of $555.45. The stock’s 50-day moving average is $397.60 and its two-hundred day moving average is $443.14. The firm has a market cap of $3.03 trillion, a P/E ratio of 24.27, a PEG ratio of 1.49 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same period in the prior year, the firm posted $3.46 EPS. The business’s revenue was up 18.3% compared to the same quarter last year. Analysts predict that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft’s dividend payout ratio is 21.67%.

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).