Lebenthal Global Advisors LLC Boosts Position in Microsoft Co. (NASDAQ:MSFT)

Lebenthal Global Advisors LLC Boosts Position in Microsoft Co. (NASDAQ:MSFT)

  • 19.03.2025 08:13
  • etfdailynews.com
  • Keywords: High, Low

Lebenthal Global Advisors increased its Microsoft holdings by 6.4% in Q4, adding 409 shares worth $2.88 million. Microsoft’s stock recently dropped 1.3%, with analysts forecasting growth and a moderate buy rating.

Microsoft ReportsMicrosoft News
open_in_newOriginal article

Estimated market influence

Lebenthal Global Advisors LLC

Positivesentiment_satisfied
Analyst rating: N/A

Increased holdings by 6.4% in Microsoft, now owns 6,843 shares worth $2,884,000.

Christopher J. Hasenberg Inc

Positivesentiment_satisfied
Analyst rating: N/A

Increased stake by 35.7%, now owns 95 shares worth $39,000.

IFS Advisors LLC

Positivesentiment_satisfied
Analyst rating: N/A

Increased stake by 53.8%, now owns 100 shares worth $42,000.

Avondale Wealth Management

Positivesentiment_satisfied
Analyst rating: N/A

Increased stake by 144.4%, now owns 110 shares worth $46,000.

MidAtlantic Capital Management Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Purchased new stake worth approximately $62,000.

Kieckhefer Group LLC

Positivesentiment_satisfied
Analyst rating: N/A

Purchased new stake worth approximately $141,000.

Context

Analysis of Lebenthal Global Advisors LLC's Position in Microsoft Co. (NASDAQ:MSFT)

Investment Activity

  • Lebenthal Global Advisors LLC:

    • Increased holdings by 6.4% in the 4th quarter.
    • Total shares held: 6,843 (up from previous).
    • Value of holdings: $2,884,000.

  • Other Institutional Investors:

    • Christopher J. Hasenberg Inc: Increased stake by 35.7%, now holds 95 shares worth $39,000.
    • IFS Advisors LLC: Increased stake by 53.8%, now holds 100 shares worth $42,000.
    • Avondale Wealth Management: Increased stake by 144.4%, now holds 110 shares worth $46,000.
    • MidAtlantic Capital Management Inc: New stake purchase worth $62,000 in the third quarter.
    • Kieckhefer Group LLC: New stake purchase worth $141,000 in the fourth quarter.

  • Total Institutional Ownership: 71.13% of Microsoft’s stock.

Microsoft's Financial Performance

  • Stock Price: Opened at $383.52 on Wednesday.

  • Market Capitalization: $2.85 trillion.

  • Financial Ratios:

    • Debt-to-equity ratio: 0.13.
    • Quick ratio: 1.34.
    • Current ratio: 1.35.
    • Price-to-earnings (P/E) ratio: 30.88.
    • PEG ratio: 2.21.
    • Beta: 0.92.

  • Earnings:

    • Q4 earnings per share (EPS): $3.23, beating estimates of $3.15.
    • Return on equity (ROE): 33.36%.
    • Net margin: 35.43%.

  • Dividend:

    • Quarterly dividend announced: $0.83, paid on June 12, 2024.
    • Annualized dividend: $3.32.
    • Dividend yield: 0.87%.
    • Dividend payout ratio: 26.73%.

Market Sentiment and Analysts' Views

  • Stock Price Movement: Microsoft stock was down 1.3%.

  • Analyst Consensus:

    • Average rating: "Moderate Buy" (according to MarketBeat).
    • Average price target: $510.43.

  • Recent Analyst Comments:

    • Guggenheim: Reiterated "neutral" rating.
    • Royal Bank of Canada: Reiterated "outperform" with a $500.00 price target.
    • Stifel Nicolaus: Cut price target from $515.00 to $475.00, maintained "buy" rating.
    • DA Davidson: Upgraded from "neutral" to "buy", raised price target to $450.00.
    • Loop Capital: Raised price target to $550.00 and reiterated "buy" rating.

Industry Overview

  • Microsoft operates in the software, services, devices, and solutions sector.
  • Key segments:
    • Productivity and Business Processes: Includes Office Suite, Microsoft Teams, SharePoint, and Microsoft 365 Copilot.
    • Consumer Services: Includes Microsoft 365 subscriptions and other consumer products.

Competitive Landscape

  • Microsoft faces competition from tech giants like Apple, Google (Alphabet), Oracle, and IBM in the software and cloud computing markets.
  • The company’s strong focus on AI integration (e.g., Microsoft 365 Copilot) positions it as a leader in enterprise productivity tools.

Risks and Challenges

  • Regulatory Environment: Potential antitrust scrutiny could impact market dominance.
  • Economic Downturns: SaaS and cloud computing demand may soften during economic slowdowns.
  • Technological Obsolescence: R&D investment is critical to maintain competitive edge.

Long-Term Implications

  • Growth Prospects: Strong earnings, expanding product portfolio (e.g., AI tools), and robust cash flow generation suggest long-term growth potential.
  • Shareholder Returns: Consistent dividend increases and buybacks could enhance shareholder value.
  • Market Leadership: Microsoft’s position in cloud computing and enterprise software makes it a key player in the global tech industry.

Conclusion

Lebenthal Global Advisors LLC’s increased stake, along with other institutional investors’ actions, reflects confidence in Microsoft’s long-term growth potential. The company’s strong financial performance, competitive positioning, and attractive dividend yield make it an appealing investment. Analysts remain bullish on the stock, with a moderate buy consensus and a high average price target.