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Microsoft Co. (NASDAQ:MSFT) is Stonehage Fleming Financial Services Holdings Ltd’s 2nd Largest Position

Microsoft Co. (NASDAQ:MSFT) is Stonehage Fleming Financial Services Holdings Ltd’s 2nd Largest Position

  • 17.03.2025 08:14
  • etfdailynews.com
  • Keywords: AI

Stonehage Fleming reduced its Microsoft stake by 8.7% in Q4 but still holds it as its second-largest position at 10%. Other investors increased their holdings, reflecting continued interest in the tech giant. Analysts rate Microsoft a "Moderate Buy" with a $510 target, supported by strong earnings and a recent dividend announcement.

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Microsoft Co.

Microsoft Co.

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Analyst rating: Strong buy

Stonehage Fleming Financial Services Holdings Ltd trimmed its position in Microsoft by 8.7% in the 4th quarter.

Context

Analysis of Microsoft Co. (NASDAQ:MSFT) Position and Market Insights

Key Facts and Data Points

  • Stonehage Fleming Financial Services Holdings Ltd:

    • Reduced Microsoft position by 8.7% in the 4th quarter.
    • Sold 81,020 shares, holding 846,015 shares after reduction.
    • Microsoft represents 10.0% of its portfolio, making it the 2nd largest holding.
    • Total holdings worth $356,595,000 as of the latest SEC filing.

  • Other Institutional Investors:

    • BCK Partners Inc.: Increased holdings by 1.8%, now owning 1,353 shares valued at $582,000.
    • Global Wealth Strategies & Associates: Increased holdings by 0.8%, now owning 2,997 shares valued at $1,290,000.
    • Christopher J. Hasenberg Inc.: Increased holdings by 35.7%, now owning 95 shares valued at $39,000.
    • Sequent Asset Management LLC: Increased holdings by 1.3%, now owning 1,983 shares valued at $853,000.
    • Cypress Point Wealth Management LLC: Increased stake by 0.8%, now owning 3,208 shares worth $1,380,000.

  • Market Ownership:

    • 71.13% of Microsoft stock is owned by hedge funds and other institutional investors.

Analyst Reports and Ratings

  • Guggenheim: Reiterated "neutral" rating on January 24th.

  • Mizuho: Cut price target from $510.00 to $500.00, maintained "outperform" rating on January 30th.

  • Royal Bank of Canada: Reiterated "outperform" rating with a $500.00 price target on January 30th.

  • Piper Sandler: Restated "overweight" rating with a $520.00 target price on January 27th.

  • Cantor Fitzgerald: Restated "overweight" rating with a $509.00 target price on January 29th.

  • Consensus Rating:

    • 3 hold ratings and 27 buy ratings, resulting in a "Moderate Buy" consensus rating.
    • Average price target: $510.43.

Earnings Performance

  • Q4 Earnings:
    • EPS of $3.23, exceeding the consensus estimate of $3.15 by $0.08.
    • Return on Equity (ROE): 33.36%.
    • Net Margin: 35.43%.
  • Year-over-Year Comparison:
    • Q4 EPS in prior year: $2.93.

Dividend Information

  • Quarterly Dividend: $0.83 per share, to be paid on June 12th.
  • Annualized Dividend: $3.32.
  • Dividend Yield: 0.85%.
  • Payout Ratio: 26.73%.

Market and Industry Implications

  • Strong Earnings Performance: Microsoft's ability to exceed earnings expectations highlights its robust financial health and market leadership in software and cloud services.
  • Positive Analyst Sentiment: The majority of analysts rate the stock as "Buy," reflecting confidence in its long-term growth potential.
  • Competitive Dynamics:
    • Microsoft faces competition from other tech giants like Apple, Google (Alphabet), and Amazon, particularly in cloud computing and AI-driven solutions.
    • Its dominance in productivity tools (e.g., Office 365, Microsoft Teams) positions it as a key player in the enterprise software market.

Strategic Considerations

  • Investor Sentiment: While Stonehage Fleming reduced its position, other institutions increased theirs, indicating mixed but generally positive sentiment.
  • Long-Term Effects:
    • Continued focus on cloud computing and AI could drive sustained growth.
    • Regulatory scrutiny in the tech sector may impact Microsoft's competitive strategies.

Conclusion

Microsoft remains a critical player in the global technology landscape, with strong financial performance and a favorable analyst outlook. While investor sentiment shows some variability, the company's strategic focus on innovation and market leadership positions it well for long-term success.