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Manning & Napier Advisors LLC Buys 257,889 Shares of Microsoft Co. (NASDAQ:MSFT)

Manning & Napier Advisors LLC Buys 257,889 Shares of Microsoft Co. (NASDAQ:MSFT)

  • 22.03.2025 07:57
  • etfdailynews.com
  • Keywords: AI

Manning & Napier Advisors LLC increased its Microsoft holdings by 58%, purchasing 257,889 shares, making Microsoft its third-largest holding worth $295 million. Analysts predict growth, with several institutions also boosting their investments in the tech giant.

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Estimated market influence

Manning & Napier Advisors LLC

Positivesentiment_satisfied
Analyst rating: N/A

Manning & Napier Advisors LLC increased its holdings in Microsoft by 58.0% during the 4th quarter, owning a significant number of shares and making it their third largest holding.

Geode Capital Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

Geode Capital Management LLC raised its position in Microsoft by 2.0% in the 3rd quarter, owning a large number of shares worth billions.

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

Positivesentiment_satisfied
Analyst rating: N/A

UBS AM increased its holdings in Microsoft by 4.1% in the 3rd quarter, significantly impacting their portfolio.

Charles Schwab Investment Management Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Charles Schwab raised its position in Microsoft by 1.4% in the 3rd quarter, adding to their investment in the company.

International Assets Investment Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

This company dramatically increased its holdings in Microsoft by 48,526.1%, acquiring a substantial number of shares worth billions.

Franklin Resources Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Franklin Resources upped their position in Microsoft by 1.1% in the 3rd quarter, reflecting a strong investment move.

Context

Analysis of Manning & Napier Advisors LLC Investment in Microsoft Co. (NASDAQ:MSFT)

Investment Activity

  • Manning & Napier Advisors LLC:

    • Increased holdings in Microsoft by 58.0% during the 4th quarter.
    • Acquired an additional 257,889 shares, bringing total holdings to 702,192 shares.
    • Microsoft represents approximately 3.4% of Manning & Napier Advisors LLC’s portfolio.
    • Market value of holdings: $295,974,000.

  • Other Institutional Investors:

    • Geode Capital Management LLC: Increased position by 2.0%, now owning 165,024,812 shares worth $70,790,682,000.
    • UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC: Increased position by 4.1%, now owning 54,590,791 shares worth $23,490,417,000.
    • Charles Schwab Investment Management Inc.: Increased position by 1.4%, now owning 47,229,125 shares worth $20,322,513,000.
    • International Assets Investment Management LLC: Increased position by 48,526.1%, acquiring 38,422,466 additional shares, now owning 38,501,645 shares worth $16,567,258,000.
    • Franklin Resources Inc.: Increased position by 1.1%, acquiring 406,940 additional shares, now owning 38,420,657 shares worth $16,104,959,000.

  • Institutional Ownership:

    • Institutional investors collectively own 71.13% of Microsoft’s stock.

Analysts' Forecasts

  • Wall Street Analysts:
    • Average rating: "Moderate Buy" with a consensus price target of $510.59.
    • Scotiabank: Initiated coverage with a “sector outperform” rating and a $470.00 target price.
    • Guggenheim: Reiterated a “neutral” rating.
    • DA Davidson: Upgraded to “buy” with a target price of $450.00.
    • Morgan Stanley: Lowered target price from $540.00 to $530.00, maintaining an “overweight” rating.
    • [Name omitted]: Downgraded from “buy” to “hold”.

Trading Performance

  • Microsoft stock opened at $391.26 on Friday.
  • 50-day moving average: $408.82.
  • 200-day moving average: $419.65.
  • One-year low: $376.91.
  • One-year high: $468.35.

Financial Metrics

  • Debt-to-Equity Ratio: 0.13.
  • Current Ratio: 1.35.
  • Quick Ratio: 1.34.
  • Market Cap: $2.91 trillion.
  • Price-to-Earnings (P/E) Ratio: 31.50.
  • Price/Earnings to Growth (PEG) Ratio: 2.21.
  • Beta: 0.92.

Earnings and Dividend

  • Q4 Earnings:

    • EPS: $3.23 (vs. consensus estimate of $3.15).
    • Net margin: 35.43%.
    • Return on equity: 33.36%.

  • Dividend Announcement:

    • Quarterly dividend of $0.83, payable on June 12, 2024.
    • Annualized dividend: $3.32.
    • Dividend Yield: 0.85%.
    • Dividend Payout Ratio (DPR): 26.73%.

Company Overview

  • Microsoft operates in software, services, devices, and solutions globally.
  • Key segments: Productivity and Business Processes (e.g., Office Suite, Microsoft Teams, Microsoft 365).
  • Strong focus on cloud computing, AI, and enterprise solutions.

Market Implications and Strategic Considerations

  1. Institutional Buying: Significant increases in holdings by major investors indicate confidence in Microsoft’s long-term growth potential.
  2. Analyst Sentiment: Positive average rating suggests continued investor interest and expectations of future performance.
  3. Stock Performance: Despite a 1.1% increase, the stock is trading below its 50-day and 200-day moving averages, indicating short-term volatility.
  4. Financial Health: Robust net margins and return on equity highlight Microsoft’s strong financial position.
  5. Dividend Policy: Modest dividend yield with a reasonable payout ratio suggests a balance between shareholder returns and reinvestment in growth.

Competitive Dynamics

  • Microsoft remains a dominant player in the software and cloud computing industries, facing competition from companies like Apple, Alphabet (Google), and Amazon.
  • Strategic investments in AI (e.g., Microsoft 365 Copilot) position the company for long-term growth in productivity solutions.

Long-Term Effects and Regulatory Impacts

  • AI and Cloud Growth: Expected to drive sustained revenue growth over the next few years.
  • Regulatory Environment: Potential scrutiny of monopolistic practices could impact competition and pricing strategies, but Microsoft’s diversified portfolio provides some protection.

This analysis highlights Microsoft’s strong financial position, institutional support, and strategic focus on innovation, positioning it as a key player in the tech industry with significant long-term growth potential.