NorthStar Asset Management LLC NJ Sells 258 Shares of Microsoft Co. (NASDAQ:MSFT)

NorthStar Asset Management LLC NJ Sells 258 Shares of Microsoft Co. (NASDAQ:MSFT)

  • 21.03.2025 08:06
  • etfdailynews.com
  • Keywords: AI

NorthStar Asset Management LLC NJ reduced its Microsoft shares by 258 during Q4, trimming holdings to 7,499. Other institutions like WFA Asset Management and Ironwood Wealth adjusted their stakes, with some increasing positions. Analysts rate Microsoft a "Moderate Buy" with a $510.59 target price, while the stock opened at $386.84, up from its 12-month low of $376.91. Microsoft reported strong earnings and announced a dividend of $0.83 per share quarterly.

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Context

Analysis and Summary: Microsoft Co. (NASDAQ:MSFT)

NorthStar Asset Management LLC NJ Transaction

  • NorthStar trimmed its holdings in Microsoft by 3.3% during Q4.
  • Sold 258 shares, reducing total holdings to 7,499 shares.
  • Microsoft represents 1.0% of the fund's portfolio, ranking as its 17th largest position.
  • Holdings were valued at $3,161,000 at the end of Q4.

Institutional Investor Activity

  • WFA Asset Management Corp: Increased stake by 27.0%, adding 216 shares, now owning 1,016 shares worth $427,000.
  • Ironwood Wealth Management LLC: Raised holdings by 0.3%, purchasing 38 additional shares, total holdings now 12,658 shares worth $5,658,000.
  • AMF Tjanstepension AB: Increased stake by 1.8%, adding 49,735 shares, total holdings now 2,799,261 shares worth $1.2 billion.
  • Czech National Bank: Lifted holdings by 6.9%, acquiring 97,893 shares, total holdings now 1,514,189 shares worth $651.5 million.
  • Waypoint Wealth Counsel: Boosted stake by 4.6%, purchasing 696 additional shares, total holdings now 15,894 shares worth $6.8 million.

Market Share Ownership

  • Institutional investors and hedge funds own 71.13% of Microsoft's stock.

Wall Street Analysts Forecast

  • Consensus Rating: "Moderate Buy" with a target price of $510.59.
  • Recent analyst actions:
    • Scotiabank: Initiated coverage with "$470.00" price target and "sector outperform" rating.
    • Stifel Nicolaus: Lowered price target from "$515.00" to "$475.00", maintained "buy" rating.
    • Mizuho: Lowered price target from "$510.00" to "$500.00", maintained "outperform" rating.
    • Morgan Stanley: Lowered price target from "$540.00" to "$530.00", maintained "overweight" rating.
    • Tigress Financial: Raised price target from "$550.00" to "$595.00", maintained "buy" rating.

Microsoft Stock Performance

  • Current Price: Opened at $386.84 on Friday.
  • Market Cap: $2.88 trillion.
  • Key Metrics:
    • P/E Ratio: 31.15
    • PEG Ratio: 2.21
    • Beta: 0.92
    • 50-day SMA: $409.38
    • 200-day SMA: $419.85
  • Dividend:
    • Annualized dividend: $3.32 per share.
    • Dividend Yield: 0.86%.
    • Dividend Payout Ratio (DPR): 26.73%.

Earnings and Financials

  • Q1 earnings: $3.23 EPS, beating estimates of $3.15.
  • Return on Equity (ROE): 33.36%.
  • Net Margin: 35.43%.
  • Analysts forecast 13.08 EPS for the current year.

Company Overview

  • Microsoft operates in software, services, devices, and solutions globally.
  • Key segments:
    • Productivity and Business Processes (e.g., Office Suite, Microsoft Teams).
    • Consumer Services (e.g., Microsoft 365 subscriptions).

Market Implications and Insights

  • Investor Sentiment: Mixed activity among institutional investors reflects strategic adjustments but sustained interest in Microsoft.
  • Analyst Consensus: Despite downgrades from some firms, the "Moderate Buy" rating indicates long-term confidence in Microsoft's growth potential.
  • Stock Valuation: With a P/E ratio of 31.15 and a target price of $510.59, Microsoft appears reasonably valued for future growth.
  • Dividend Growth: The consistent dividend increases (e.g., from $0.83 quarterly to an annualized $3.32) suggest a commitment to shareholder returns.

Competitive Dynamics

  • Microsoft's strong position in productivity tools and cloud services positions it as a leader in the tech sector, with competitors like Apple, Google, and Amazon vying for market share.
  • The company's ability to adapt to evolving technology trends (e.g., AI integration in products like Microsoft 365 Copilot) will likely influence its competitive edge.

Strategic Considerations

  • Product Innovation: Continued investment in AI-driven tools and cloud infrastructure is critical for maintaining growth.
  • Regulatory Environment: As a global tech giant, Microsoft must navigate antitrust scrutiny and data privacy regulations, which could impact its business model.
  • Long-Term Growth: Analysts expect sustained earnings growth, driven by Azure cloud services, Office Suite subscriptions, and emerging markets.

Conclusion

Microsoft remains a key player in the technology sector with strong financial performance and a robust product pipeline. While investor activity shows strategic adjustments, the overall sentiment indicates confidence in its long-term prospects.