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Narwhal Capital Management Has $66.61 Million Stock Holdings in Microsoft Co. (NASDAQ:MSFT)

Narwhal Capital Management Has $66.61 Million Stock Holdings in Microsoft Co. (NASDAQ:MSFT)

  • 18.03.2025 02:40
  • etfdailynews.com
  • Keywords: AI, Startup

Narwhal Capital Management reduced its Microsoft stock holdings by 0.4% in the fourth quarter, selling 587 shares, leaving it worth $66.61 million. Other hedge funds, including International Assets Investment Management and Assenagon Asset Management, significantly increased their stakes in Microsoft during the same period.

Microsoft ReportsMSFTsentiment_satisfied

Estimated market influence

Narwhal Capital Management

Positivesentiment_satisfied
Analyst rating: N/A

Trimmed its position in Microsoft stock, indicating a slight decrease in investment confidence.

International Assets Investment Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

Significantly increased their stake in Microsoft by 48,526.1%, showing strong confidence in the company's future performance.

Assenagon Asset Management S.A.

Positivesentiment_satisfied
Analyst rating: N/A

Increased its stake by 76.6%, reflecting a positive outlook on Microsoft's growth potential.

Geode Capital Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

Slightly increased its holdings, indicating continued investment in Microsoft.

Baillie Gifford & Co.

Positivesentiment_satisfied
Analyst rating: N/A

Significantly boosted their stake by 46.1%, showing strong support for Microsoft's future performance.

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC

Positivesentiment_satisfied
Analyst rating: N/A

Increased its holdings by 4.1%, indicating confidence in Microsoft's stock value.

Microsoft Co.

Microsoft Co.

Positivesentiment_satisfied
Analyst rating: Strong buy

Multiple hedge funds increased their investments, reflecting positive market sentiment towards the company.

Context

Business Insights and Market Implications Analysis

Key Facts and Data Points

  • Narwhal Capital Management reduced its Microsoft (NASDAQ:MSFT) holdings by 0.4% in the fourth quarter, selling 587 shares, leaving it with 158,025 shares worth $66.61 million.
  • Microsoft represents 5.9% of Narwhal Capital Management’s portfolio, making it the firm's 4th largest holding.
  • The stock is highly institutionalized, with 71.13% ownership by institutional investors.

Hedge Fund Activity

  • International Assets Investment Management LLC: Increased stake by 48,526.1%, now owning 38,501,645 shares valued at $16.567 billion.
  • Assenagon Asset Management S.A.: Increased stake by 76.6%, now owning 10,532,402 shares valued at $4.439 billion.
  • Geode Capital Management LLC: Increased stake by 2.0%, now owning 165,024,812 shares valued at $70.79 billion.
  • Baillie Gifford & Co.: Increased stake by 46.1%, now owning 7,048,244 shares valued at $3.032 billion.
  • UBS AM (a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC): Increased stake by 4.1%, now owning 54,590,791 shares valued at $23.49 billion.

Microsoft Stock Performance

  • Market Cap: $2.89 trillion.
  • P/E Ratio: 31.29.
  • P/E/G Ratio: 2.21.
  • Beta: 0.92.
  • 50-day SMA: $412.43.
  • 200-day SMA: $420.64.
  • Fifty-two week price range: $376.91 - $468.35.
  • QPS (Quarterly Performance): Earnings per share ($EPS) of $3.23, beating estimates by $0.08.
  • Net Margin: 35.43%.
  • Return on Equity (ROE): 33.36%.

Dividend Information

  • Quarterly Dividend: $0.83, paid on June 12th to shareholders of record on May 15th.
  • Annualized Dividend Yield: 0.85%.
  • Dividend Payout Ratio: 26.73%.

Wall Street Analysts' Sentiment

  • Average Rating: "Moderate Buy" with a consensus price target of $510.43.
  • Analyst Adjustments:
    • Morgan Stanley: Reduced target from $540 to $530, maintained "overweight".
    • Mizuho: Reduced target from $510 to $500, maintained "outperform".
    • Stifel Nicolaus: Dropped target from $515 to $475, maintained "buy".
  • Hold vs. Buy: Three analysts rated "hold", twenty-seven rated "buy".

Market Implications

  • Strong Institutional Demand: The significant increases in holdings by major hedge funds and asset managers indicate continued confidence in Microsoft's long-term growth.
  • Competitive Dynamics: Microsoft's position as a leader in cloud computing, productivity tools, and enterprise software underscores its dominance in these markets.
  • Strategic Considerations:
    • Dividend Growth: The consistent dividend payments suggest a focus on returning value to shareholders while maintaining strong earnings growth.
    • Earnings Expectations: Analysts predict $13.08 EPS for the current fiscal year, reflecting expectations of sustained profitability.
  • Regulatory Environment: No significant regulatory risks mentioned, though antitrust scrutiny remains a potential long-term concern.

Long-Term Effects

  • Microsoft's focus on innovation in areas like AI (e.g., Microsoft 365 Copilot) and cloud services positions it for continued growth in the tech sector.
  • The company's ability to maintain high margins (35.43%) and strong ROE (33.36%) highlights its efficient operations and profitability.

Conclusion

Microsoft remains a key player in the global technology market, with strong institutional support, robust financial performance, and a diversified product portfolio. While some analysts have reduced their price targets, the overall sentiment suggests continued optimism about the company's future growth prospects.