Analysis of Cora Capital Advisors LLC's Stock Position in Microsoft Co. (NASDAQ:MSFT)

Cora Capital Advisors' Position

• Reduction in Stake: Cora Capital Advisors reduced its position in Microsoft by 3.1% in the 4th quarter, selling 256 shares.
• Current Holdings: The firm now owns 8,135 shares worth $3,429,000, representing approximately 1.7% of its total holdings.
• Ranking: Microsoft is the 12th largest position in Cora Capital Advisors' portfolio.

Market Trends and Institutional Activity

• Institutional Ownership: Approximately 71.13% of Microsoft's stock is owned by institutional investors and hedge funds.
• Other Adjustments:
  • BCK Partners Inc. increased its stake by 1.8% in the 3rd quarter, now owning $582,000 worth of shares.
  • Global Wealth Strategies & Associates increased its stake by 0.8%, holding $1,290,000 worth of shares.
  • Christopher J. Hasenberg Inc. increased its position by 35.7%, valuing it at $39,000.
  • Sequent Asset Management LLC and Cypress Point Wealth Management LLC also increased their stakes by 1.3% and 0.8%, respectively.

Wall Street Analysts' Outlook

• Consensus Rating: Microsoft has a "Moderate Buy" rating with a consensus price target of $510.43.
• Recent Downgrades/Upgrades:
  • Stifel Nicolaus cut the target price to $475.00 and maintained a "buy" rating.
  • Piper Sandler reissued an "overweight" rating with a $520.00 target.
  • Mizuho downgraded from $510.00 to $500.00 with an "outperform" rating.
  • Loop Capital raised its target price to $550.00 and maintained a "buy" rating.

Microsoft Stock Performance

• Current Price: Opened at $388.56 on the latest trading day.
• Key Metrics:
  • Market Cap: $2.89 trillion
  • P/E Ratio: 31.29
  • PEG Ratio: 2.21
  • Beta: 0.92
  • 50-Day SMA: $412.43
  • 200-Day SMA: $420.64
  • 12-Month Low: $376.91
  • 12-Month High: $468.35

Earnings and Dividend

• Q4 Earnings: Microsoft reported EPS of $3.23, beating the consensus estimate of $3.15.
• Financial Highlights:
  • Net Margin: 35.43%
  • Return on Equity: 33.36%
  • Analysts predict EPS of 13.08 for the current year.
• Dividend Announcement: Microsoft declared a quarterly dividend of $0.83, paid on June 12th to investors of record on May 15th. This represents an annualized dividend of $3.32 and a yield of 0.85%. The payout ratio is 26.73%.

Competitive Landscape

• Market Leadership: Microsoft remains a leader in the software and cloud computing market, competing with companies like Amazon (AWS) and Google Cloud.
• Productivity Tools: The company's productivity segment, including Office, Azure, and Microsoft 365, continues to drive significant revenue.

Strategic Considerations

• Investor Sentiment: Mixed analyst ratings suggest potential growth opportunities but also highlight risks.
• Valuation: With a P/E ratio of 31.29 and a beta of 0.92, Microsoft appears reasonably valued with moderate volatility.

Long-term Effects

• Dividend Growth: The consistent dividend increases indicate Microsoft's commitment to shareholder value, which could attract long-term investors.
• Innovation: Continued investment in cloud computing and AI (e.g., Microsoft 365 Copilot) positions the company for sustained growth.

Regulatory Impact

• Compliance: As a major tech player, Microsoft is subject to ongoing regulatory scrutiny, particularly in antitrust matters. However, no significant issues were highlighted in the text.

Conclusion

Cora Capital Advisors' reduction in its Microsoft stake, alongside other institutional shifts, reflects nuanced investor strategies in a competitive market. Despite analyst downgrades and price target adjustments, Microsoft's strong financial performance, dividend yield, and leadership in key tech sectors position it as a resilient investment. Long-term implications include sustained growth in cloud computing and AI, while regulatory risks remain a consideration.