On July 10, 2025, Community Trust & Investment Co reported selling shares of Microsoft (MSFT 1.27%), reducing its position by $5.79 million in the latest SEC filing.
What happened
According to a filing with the Securities and Exchange Commission dated July 10, 2025, The firm sold 13,371 shares of Microsoft during Q2 2025. The reported transaction totaled $5.79 million. After the trade, the fund held 224,197 shares as of June 30, 2025, with a position value of $111.52 million as of June 30, 2025.
What else to know
The sale reduced Microsoft’s portfolio weight to 6.45% of 13F reportable AUM as of June 30, 2025
Top holdings after the filing:
MSFT: $223,035,672 (12.90% of AUM)
GOOGL: $216,864,286 (12.54% of AUM)
NVDA: $214,820,910 (12.42% of AUM)
CTBI: $209,470,000 (12.10% of AUM) as of Q2 2025
AAPL: $157,356,788 (9.10% of AUM)
Microsoft shares closed at $501.48 on July 10, 2025, up 9.13% over the year ending July 10, 2025
One-year alpha versus the S&P 500: (3.49) percentage points as of July 10, 2025
Dividend yield 0.65%; forward P/E ratio of 37.44 as of July 10, 2025
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $270.01 billion |
| Net income (TTM) | $96.6 billion |
| Dividend yield | 0.65% |
| Current price | $501.48 |
Company snapshot
Offers a diversified portfolio including software (Windows, Office, Azure), cloud services, business solutions, gaming (Xbox), and hardware devices.
Generates revenue through software licensing, cloud subscriptions, enterprise services, device sales, and advertising.
Serves organizations, enterprises, and individual consumers globally.
Microsoft Corporation is a global leader in technology, operating at scale across cloud infrastructure, productivity software, and digital platforms. The company leverages a broad product suite and recurring revenue streams to maintain a strong competitive position. A strategic focus on cloud computing and enterprise solutions underpins its sustained growth.
Foolish take
Microsoft is a giant in tech and with its early backing of OpenAI, a leader in artificial intelligence. The company has seen double-digit growth in both revenue and net income for the past five quarters (with Q2 2024 as the sole exception at 9.7% net income growth), largely driven by its cloud computing segment, which grew 22% last quarter.
With a strong financial standing, Microsoft is heavily investing in AI-related cloud infrastructure, projecting approximately $80 billion in spending for 2025.
However, investors should be aware of risks, primarily the strain in Microsoft's relationship with OpenAI and its reliance on it for the lion's share of its cloud revenue growth. There's a possibility OpenAI could switch cloud providers and leave Microsoft hanging out to dry.
Microsoft stock currently trades at a P/E ratio of 38, higher than its 20-year average. While it's a solid addition to a diversified portfolio, I think there are better opportunities within big tech.
Glossary
13F reportable assets under management (AUM): The value of securities an institutional investment manager must report quarterly to the SEC on Form 13F.
Portfolio weight: The percentage of a fund’s total assets allocated to a specific investment or holding.
Alpha: A measure of an investment’s performance compared to a benchmark, showing value added or subtracted by active management.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Forward P/E ratio: Price-to-earnings ratio using forecasted earnings over the next 12 months, indicating expected valuation.
Transaction value: The total dollar amount generated from buying or selling a security in a single trade.
Cloud services: On-demand computing resources and software delivered over the internet, often by subscription.
Filing with the Securities and Exchange Commission: Submission of required financial or ownership documents to the SEC for regulatory compliance.
Top holdings: The largest investments in a fund’s portfolio, ranked by value or percentage of assets.
TTM (Trailing Twelve Months): Financial data covering the most recent 12 consecutive months, used for analysis.
