Watershed Private Wealth LLC Cuts Stake in Microsoft Co. (NASDAQ:MSFT)

Watershed Private Wealth LLC Cuts Stake in Microsoft Co. (NASDAQ:MSFT)

  • 21.03.2025 08:21
  • etfdailynews.com
  • Keywords: AI, Startup

Watershed Private Wealth LLC reduced its stake in Microsoft by 7.6%, selling 561 shares, while other investors like International Assets and Assenagon increased their holdings significantly. Despite a slight stock decline, analysts rate Microsoft as "Moderate Buy" with a high target price.

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Estimated market influence

Watershed Private Wealth LLC

Negativesentiment_dissatisfied
Analyst rating: N/A

Reduced their stake in Microsoft by 7.6% during the fourth quarter.

International Assets Investment Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

Boosted its position in Microsoft by 48,526.1% during the third quarter.

Assenagon Asset Management S.A.

Positivesentiment_satisfied
Analyst rating: N/A

Raised its holdings in Microsoft by 76.6% in the fourth quarter.

Geode Capital Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

Increased its stake in Microsoft by 2.0% in the third quarter.

Baillie Gifford & Co.

Positivesentiment_satisfied
Analyst rating: N/A

Boosted its holdings in Microsoft by 46.1% during the third quarter.

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

Positivesentiment_satisfied
Analyst rating: N/A

Grew its position in Microsoft by 4.1% in the third quarter.

Microsoft Co.

Microsoft Co.

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Stock price down 0.3%. Market capitalization of $2.88 trillion, with a P/E ratio of 31.15 and a PEG ratio of 2.21. The company reported EPS of $3.23 for the quarter, which was higher than expected.

UBS ASSET MANAGEMENT AMERICAS LLC

Positivesentiment_satisfied
Analyst rating: N/A

Through its distinct business unit UBS AM, increased holdings in Microsoft by 4.1% in the third quarter.

Context

Analysis of Watershed Private Wealth LLC's Stake Reduction in Microsoft Co. (NASDAQ:MSFT)

Portfolio Adjustment by Watershed Private Wealth LLC

  • Watershed Private Wealth LLC reduced its stake in Microsoft by 7.6% during the fourth quarter, selling 561 shares.
  • The firm ended the quarter with 6,828 shares, valued at $2,878,000.
  • Microsoft represents approximately 1.1% of Watershed's portfolio, making it the 20th largest holding.

Market Performance and Financial Metrics

  • Microsoft stock closed at $386.84, down 0.3% on Friday.
  • The stock has a 52-week low of $376.91 and a 52-week high of $468.35.
  • Market capitalization: $2.88 trillion.
  • P/E ratio: 31.15, PEG ratio: 2.21, Beta: 0.92.
  • Quick ratio: 1.34, Current ratio: 1.35, Debt-to-equity ratio: 0.13.

Analyst Sentiment and Ratings

  • Multiple analysts upgraded Microsoft, with an average rating of "Moderate Buy" and a consensus price target of $510.59.
  • Notable upgrades include:
    • DA Davidson: Upgraded to "buy" with a price target of $450.00.
    • Wedbush: Reiterated "outperform" with a price target of $550.00.
    • Piper Sandler: Maintained "overweight" with a price target of $520.00.

Earnings and Dividends

  • Microsoft reported $3.23 EPS, exceeding estimates by $0.08.
  • Net margin: 35.43%, Return on Equity (ROE): 33.36%.
  • Annualized dividend of $0.83 per share, yielding 0.86%, with a payout ratio of 26.73%.

Competitive Landscape and Strategic Considerations

  • Microsoft operates in the software, services, devices, and solutions sector.
  • Key segments include Productivity and Business Processes (e.g., Office 365, Microsoft Teams) and Cloud Services (Azure).
  • Strong earnings growth and robust financial health suggest sustained competitive advantage.

Institutional Ownership

  • 71.13% of Microsoft's shares are owned by institutional investors and hedge funds.
  • Despite Watershed's reduction, other major investors like International Assets Investment Management and Assenagon Asset Management have significantly increased their stakes.

Long-Term Effects and Regulatory Implications

  • Microsoft's strong financial performance and analyst sentiment suggest long-term growth potential.
  • The company's dominance in key markets (e.g., cloud computing) positions it for sustained success, though regulatory scrutiny remains a consideration.

This analysis highlights Microsoft's resilience and strategic importance in the tech sector, despite shifts in institutional investor strategies.