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Tran Capital Management L.P. Has $61.21 Million Position in Microsoft Co. (NASDAQ:MSFT)

Tran Capital Management L.P. Has $61.21 Million Position in Microsoft Co. (NASDAQ:MSFT)

  • 16.03.2025 16:40
  • etfdailynews.com
  • Keywords: High Risk

Tran Capital Management L.P. reduced its Microsoft stake by 4.1% in the 4th quarter, owning 145,213 shares worth $61.21 million. Analysts predict growth, with a "Moderate Buy" rating and a price target of $510.43.

Microsoft Reports

Estimated market influence

Context

Business Insights and Market Implications Analysis

Key Facts and Data Points

  • Tran Capital Management L.P. reduced its position in Microsoft Co. (NASDAQ:MSFT) by 4.1% during the 4th quarter, selling 6,151 shares, ending with 145,213 shares.
  • Microsoft represents 6.9% of Tran Capital Management L.P.'s portfolio, making it its 2nd largest holding, valued at $61.207 million.
  • International Assets Investment Management LLC increased its holdings by 48,526.1%, acquiring 38,422,466 shares, worth $16.567 billion.
  • Assenagon Asset Management S.A. grew its position by 76.6%, adding 4,568,539 shares, valued at $4.439 billion.
  • Geode Capital Management LLC increased holdings by 2.0%, acquiring 3,264,648 shares, worth $70.79 billion.
  • Baillie Gifford & Co. boosted its stake by 46.1%, purchasing 2,222,483 shares, valued at $3.032 billion.
  • UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased holdings by 4.1%, acquiring 2,125,030 shares, worth $23.49 billion.
  • Institutional investors and hedge funds own 71.13% of Microsoft's stock.

Market Trends and Business Impact

  • Analyst Sentiment:

    • DA Davidson upgraded Microsoft to a "Buy" rating with a price target of $450.00, up from $425.00.
    • Mizuho lowered its target from $510.00 to $500.00 but maintained an "Outperform" rating.
    • Royal Bank of Canada reissued an "Outperform" rating with a price target of $500.00.
    • Guggenheim reaffirmed a "Neutral" rating.
    • The stock has a consensus rating of "Moderate Buy" and a consensus price target of $510.43.

  • Stock Performance:

    • Microsoft's stock opened at $388.56, with a 52-week low of $376.91 and a high of $468.35.
    • The company has a market cap of $2.89 trillion, a P/E ratio of 31.29, a PEG ratio of 2.21, and a beta of 0.92.

  • Earnings:

    • Microsoft reported $3.23 EPS for the quarter, beating estimates of $3.15.
    • The company achieved a net margin of 35.43% and a return on equity of 33.36%.

  • Dividend:

    • Microsoft declared a quarterly dividend of $0.83, annualized to $3.32, with a yield of 0.85%.
    • The payout ratio is 26.73%.

Competitive Dynamics and Strategic Considerations

  • Microsoft's focus on productivity tools (e.g., Office, Teams, Microsoft 365) positions it as a leader in the software and cloud services market.
  • The company's strong financial performance and consistent earnings growth suggest long-term revenue and profitability potential.

Long-Term Effects and Regulatory Implications

  • While not explicitly mentioned, Microsoft's dominance in key markets may attract regulatory scrutiny, particularly regarding antitrust concerns.
  • The company's ability to maintain its competitive edge in cloud computing and AI-driven solutions (e.g., Microsoft 365 Copilot) will be critical for sustained growth.

Conclusion

The data highlights a mixed but generally positive sentiment toward Microsoft, with institutional investors like Tran Capital reducing their stake while others significantly increase theirs. Analysts remain bullish, with a high consensus price target reflecting confidence in the company's future performance. Microsoft's strong financial health and leadership in key markets position it for long-term growth, though regulatory risks and competition remain potential challenges.