Stordahl Capital Management Inc. Buys 1,407 Shares of Microsoft Co. (NASDAQ:MSFT)

Stordahl Capital Management Inc. Buys 1,407 Shares of Microsoft Co. (NASDAQ:MSFT)

  • 23.03.2025 10:51
  • etfdailynews.com
  • Keywords: AI

Stordahl Capital Management Inc. increased its Microsoft stake by 40.2% in the fourth quarter, purchasing an additional 1,407 shares, totaling 4,909 shares worth $2.07 million. This follows a broader trend of institutional investors and hedge funds increasing their holdings in Microsoft, with several firms significantly expanding their positions during the same period.

Microsoft Reports
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Context

Analysis and Summary: Microsoft Co. Investment Insights

Key Facts and Data Points

  • Stordahl Capital Management Inc.:

    • Increased holdings in Microsoft by 40.2% in Q4.
    • Total shares held: 4,909 (up from 3,502).
    • Market value of holdings: $2,069,000.
    • Microsoft is the 21st largest holding, comprising 0.5% of total assets.

  • International Assets Investment Management LLC:

    • Increased holdings by 48,526.1% in Q3.
    • Total shares held: 38,501,645 (up from 38,422,466).
    • Market value of holdings: $16,567,258,000.

  • Assenagon Asset Management S.A.:

    • Increased holdings by 76.6% in Q4.
    • Total shares held: 10,532,402 (up from 5,963,863).
    • Market value of holdings: $4,439,407,000.

  • Geode Capital Management LLC:

    • Increased holdings by 2.0% in Q3.
    • Total shares held: 165,024,812 (up from 161,760,164).
    • Market value of holdings: $70,790,682,000.

  • Baillie Gifford & Co.:

    • Increased holdings by 46.1% in Q3.
    • Total shares held: 7,048,244 (up from 4,825,761).
    • Market value of holdings: $3,032,859,000.

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

    • Increased holdings by 4.1% in Q3.
    • Total shares held: 54,590,791 (up from 52,465,761).
    • Market value of holdings: $23,490,417,000.

  • Institutional Ownership:

    • Total institutional ownership: 71.13%.

Financial Metrics

  • Market Capitalization: $2.91 trillion.
  • P/E Ratio: 31.50.
  • PEG Ratio: 2.21.
  • Beta: 0.92.
  • 50-Day SMA: $408.82.
  • 200-Day SMA: $419.67.
  • Twelve Month Low: $376.91.
  • Twelve Month High: $468.35.
  • Current Ratio: 1.35.
  • Quick Ratio: 1.34.
  • Debt-to-Equity Ratio: 0.13.

Earnings and Dividends

  • Q4 Earnings:

    • EPS: $3.23 (vs. consensus estimate of $3.15).
    • Net Margin: 35.43%.
    • Return on Equity: 33.36%.

  • Dividend:

    • Quarterly dividend: $0.83 per share (annualized: $3.32).
    • Dividend Yield: 0.85%.
    • Dividend Payout Ratio: 26.73%.

Analyst Ratings and Price Targets

  • Analyst Consensus:

    • Average rating: "Moderate Buy" (MarketBeat.com).
    • Average target price: $510.59.

  • Recent Comments:

    • Royal Bank of Canada: Reaffirmed "outperform", $500.00 target.
    • Morgan Stanley: Decreased target from $540.00 to $530.00, "overweight" rating.
    • Guggenheim: Reiterated "neutral" rating.
    • DA Davidson: Upgraded to "buy", increased target from $425.00 to $450.00.
    • Mizuho: Decreased target from $510.00 to $500.00, "outperform" rating.

Market and Industry Implications

  • Investor Sentiment:

    • Significant increases in holdings by institutional investors (e.g., Stordahl Capital, Assenagon Asset Management) indicate confidence in Microsoft's long-term growth potential.
    • The stock's average target price of $510.59 suggests positive sentiment among analysts.

  • Competitive Landscape:

    • Microsoft faces competition from other tech giants like Amazon and Alphabet but remains a dominant player in software, cloud computing, and productivity tools.

  • Strategic Considerations:

    • Microsoft's focus on AI (e.g., Microsoft 365 Copilot) positions it as a leader in innovation, which aligns with analyst expectations for future growth.
    • The company's strong financial performance (EPS beat, high net margin) supports its valuation and dividend payouts.

  • Regulatory Risks:

    • While not explicitly mentioned, the tech sector often faces antitrust scrutiny, which could impact Microsoft's competitive dynamics in the long term.

Long-Term Effects and Strategic Outlook

  • Growth Opportunities:

    • Continued investment in AI, cloud services, and enterprise software positions Microsoft for sustained revenue growth.
    • The company's ability to adapt to emerging technologies will be critical for maintaining its market leadership.

  • Shareholder Value:

    • The combination of dividend payouts (26.73% payout ratio) and stock buybacks (if any) suggests a balanced approach to returning value to shareholders.

  • Market Positioning:

    • With a market cap of $2.91 trillion, Microsoft remains one of the largest companies globally, making it a key player in both the tech sector and broader financial markets.

Conclusion

The data highlights Microsoft's strong position in the market, supported by robust financial performance, strategic investments in AI, and positive analyst sentiment. The increases in institutional holdings further underscore investor confidence in the company's future prospects. However, ongoing competition and regulatory risks remain key factors to monitor for long-term investment decisions.