Smith Group Asset Management LLC Has $59.42 Million Stock Holdings in Microsoft Co. (NASDAQ:MSFT)

Smith Group Asset Management LLC Has $59.42 Million Stock Holdings in Microsoft Co. (NASDAQ:MSFT)

  • 22.03.2025 07:59
  • etfdailynews.com
  • Keywords: AI

Smith Group Asset Management LLC increased its Microsoft holdings by 0.5%, owning shares worth $59.42 million, making it their second-largest holding. Analysts have upgraded Microsoft, reflecting a "Moderate Buy" consensus with higher target prices. The stock opened at $391.26 with a market cap of $2.91 trillion.

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Estimated market influence

Smith Group Asset Management LLC

Positivesentiment_satisfied
Analyst rating: N/A

Smith Group Asset Management LLC increased its holdings in Microsoft by 0.5% in the 4th quarter, owning 140,962 shares worth $59.42 million.

International Assets Investment Management LLC

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Analyst rating: N/A

Increased holdings by 48,526.1%, now owns 38,501,645 shares worth $16.57 billion.

Assenagon Asset Management S.A.

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Analyst rating: N/A

Increased holdings by 76.6%, now owns 10,532,402 shares worth $4.44 billion.

Geode Capital Management LLC

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Analyst rating: N/A

Increased holdings by 2.0%, now owns 165,024,812 shares worth $70.79 billion.

Baillie Gifford & Co.

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Analyst rating: N/A

Increased holdings by 46.1%, now owns 7,048,244 shares worth $3.03 billion.

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

Positivesentiment_satisfied
Analyst rating: N/A

Increased holdings by 4.1%, now owns 54,590,791 shares worth $23.49 billion.

Tigress Financial

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Analyst rating: N/A

Raised target price to $595 and maintained a 'buy' rating.

Loop Capital

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Analyst rating: N/A

Raised target price to $550 and maintained a 'buy' rating.

Scotiabank

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Analyst rating: N/A

Initiated coverage with a 'sector outperform' rating and $470 target price.

DA Davidson

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Analyst rating: N/A

Upgraded to 'buy' and raised target price to $450.

Cantor Fitzgerald

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Analyst rating: N/A

Reaffirmed 'overweight' rating with a $509 target price.

Context

Analysis of Smith Group Asset Management LLC's Investment in Microsoft Co. (NASDAQ:MSFT)

Key Facts and Data Points

  • Smith Group Asset Management LLC increased its stake in Microsoft by 0.5% in the 4th quarter, purchasing an additional 645 shares.
  • Total holdings of Microsoft stock: 140,962 shares, worth $59,415,000 as of the latest filing with the SEC.
  • Microsoft represents 4.4% of Smith Group's portfolio, making it its second-largest holding.

Institutional Investment Trends

  • International Assets Investment Management LLC: Increased holdings by 48,526.1%, now owning 38,501,645 shares worth $16,567,258,000.
  • Assenagon Asset Management S.A.: Increased holdings by 76.6%, now owning 10,532,402 shares worth $4,439,407,000.
  • Geode Capital Management LLC: Increased holdings by 2.0%, now owning 165,024,812 shares worth $70,790,682,000.
  • Baillie Gifford & Co.: Increased holdings by 46.1%, now owning 7,048,244 shares worth $3,032,859,000.
  • UBS AM (a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC): Increased holdings by 4.1%, now owning 54,590,791 shares worth $23,490,417,000.
  • Institutional ownership: 71.13% of Microsoft's stock is owned by institutional investors.

Wall Street Analyst Sentiment

  • Consensus Rating: "Moderate Buy" with a consensus target price of $510.59 (according to MarketBeat.com).
  • Analyst Upgrades:
    • Tigress Financial: Raised target price from $550.00 to $595.00.
    • Loop Capital: Raised target price from $500.00 to $550.00.
    • Scotiabank: Initiated coverage with a "sector outperform" rating and a target price of $470.00.
    • DA Davidson: Upgraded from "neutral" to "buy" and raised target price from $425.00 to $450.00.
    • Cantor Fitzgerald: Reaffirmed "overweight" rating with a target price of $509.00.

Microsoft Stock Performance

  • Current Price: Opened at $391.26 on the latest trading day.
  • Moving Averages:
    • 50-day moving average: $408.82
    • 200-day moving average: $419.65
  • Market Cap: $2.91 trillion.
  • Valuation Metrics:
    • PE ratio: 31.50
    • Price-to-Earnings-Growth (PEG) ratio: 2.21
    • Beta: 0.92
  • Liquidity and Solvency:
    • Debt-to-equity ratio: 0.13
    • Quick ratio: 1.34
    • Current ratio: 1.35

Earnings Performance

  • Q4 EPS: $3.23 (vs. consensus estimate of $3.15).
  • Net Margin: 35.43%.
  • Return on Equity (ROE): 33.36%.
  • Year-over-Year EPS Growth: From $2.93 to $3.23.
  • Analyst Forecast: Expected EPS for the current fiscal year: 13.08.

Dividend Information

  • Dividend Announcement: Microsoft declared a quarterly dividend of $0.83, payable on June 12, 2025, to shareholders of record on May 15, 2025.
  • Annualized Dividend: $3.32 (based on the latest dividend rate).
  • Dividend Yield: 0.85%.
  • Dividend Payout Ratio (DPR): 26.73%.

Industry and Competitive Dynamics

  • Microsoft operates in the software, services, devices, and solutions sector, with a strong focus on productivity tools, cloud computing, and enterprise software.
  • Key products include Office 365, Microsoft Teams, Azure, and Windows.

Market Implications

  • Strong Institutional Demand: The significant increase in holdings by major institutional investors highlights confidence in Microsoft's long-term growth potential.
  • Positive Analyst Sentiment: The "Moderate Buy" consensus rating and upward revisions suggest a favorable outlook for the company's stock performance.
  • Competitive Positioning: Microsoft's dominance in cloud computing, enterprise software, and productivity tools positions it as a leader in its industry.
  • Dividend Growth: The announced dividend reflects Microsoft's commitment to returning value to shareholders while maintaining strong financial health.

Long-Term Effects and Strategic Considerations

  • Innovation in AI and Cloud Services: Microsoft's investments in artificial intelligence and cloud computing are expected to drive future revenue growth and market expansion.
  • Regulatory Environment: While the tech sector is subject to regulatory scrutiny, Microsoft's established market position and compliance efforts may mitigate risks.
  • Global Expansion Opportunities: The company's focus on emerging markets and cross-platform integration could further enhance its global reach and profitability.

Conclusion

Microsoft Co. (NASDAQ:MSFT) continues to demonstrate strong financial performance, robust institutional ownership, and positive analyst sentiment. Its strategic focus on innovation, coupled with a solid dividend policy, positions it as an attractive investment opportunity in the tech sector.