Coastwise Capital Group LLC Has $3.52 Million Position in Microsoft Co. (NASDAQ:MSFT)

Coastwise Capital Group LLC Has $3.52 Million Position in Microsoft Co. (NASDAQ:MSFT)

  • 25.03.2025 07:20
  • etfdailynews.com
  • Keywords: AI

Coastwise Capital Group LLC increased its Microsoft stake by 8.6% in Q4, holding $3.52 million worth of shares. Analysts predict growth with a 'Moderate Buy' rating and an average price target of $510.59.

Microsoft ServicesMicrosoft Reports
open_in_newOriginal article

Estimated market influence

Coastwise Capital Group LLC

Positivesentiment_satisfied
Analyst rating: N/A

Coastwise Capital Group LLC increased its position in Microsoft by 8.6% during the 4th quarter and now owns 8,353 shares worth $3.52 million.

Context

Business Insights and Market Implications Analysis

Key Facts and Data Points

  • Coastwise Capital Group LLC's Investment:

    • Increased Microsoft position by 8.6% in Q4.
    • Total shares held: 8,353 (worth $3.52 million).
    • Microsoft represents 2.8% of Coastwise’s portfolio.
    • Microsoft is the 7th largest holding for Coastwise.

  • Other Institutional Investors' Activities:

    • Geode Capital Management LLC: Increased stake by 2.0%, now owning 165,024,812 shares worth $70.79 billion.
    • UBS AM (a unit of UBS ASSET MANAGEMENT AMERICAS LLC): Stake increased by 4.1%, holding 54,590,791 shares valued at $23.49 billion.
    • Charles Schwab Investment Management Inc.: Raised stake by 1.4%, now owning 47,229,125 shares worth $20.32 billion.
    • International Assets Investment Management LLC: Increased holdings by 48,526.1%, holding 38,501,645 shares valued at $16.57 billion.
    • Franklin Resources Inc.: Stake increased by 1.1%, now owning 38,420,657 shares worth $16.10 billion.

  • Analyst Sentiment:

    • Loop Capital: Raised price target to $550 from $500, "Buy" rating.
    • Tigress Financial: Boosted price target to $595, "Buy" rating.
    • Holden: Downgraded from "Buy" to "Hold".
    • Cantor Fitzgerald and Piper Sandler: Maintained "Overweight" ratings with price targets of $509 and $520, respectively.
    • Consensus rating: "Moderate Buy" with an average price target of $510.59.

  • Microsoft Stock Performance:

    • Opened at $393.08 on the latest trading day.
    • 1-year low: $376.91, 1-year high: $468.35.
    • Market cap: $2.92 trillion.
    • P/E ratio: 31.65, PEG ratio: 2.21, Beta: 0.92.
    • 50-day moving average: $408.34, 200-day moving average: $419.63.

  • Earnings and Dividends:

    • QPS (Quarterly Profit per Share): $3.23, beating estimates of $3.15.
    • Announced quarterly dividend of $0.83, yielding 0.84% annually.
    • Payout ratio: 26.73%.

  • Market Position and Products:

    • Microsoft is a leading global software company with segments including Productivity and Business Processes (e.g., Office, Teams, Azure).
    • Dominant player in the tech and cloud services market, competing with companies like Apple, Google/Alphabet, and others.

Market Trends and Business Impact

  • Strong Institutional Demand: The significant increases in stakes by major institutional investors (Geode Capital, UBS AM, Charles Schwab, etc.) indicate strong confidence in Microsoft's long-term growth potential. This trend suggests continued upward pressure on the stock price.

  • Analyst Optimism: Despite one downgrade, the majority of analysts remain bullish, with a "Moderate Buy" consensus and an average price target above current market levels ($510.59 vs. $393.08). This reflects positive sentiment toward Microsoft's future earnings and growth prospects.

  • High Valuation Metrics: Microsoft's P/E ratio (31.65) and PEG ratio (2.21) suggest it is reasonably valued for a high-growth company, though not cheap. The beta of 0.92 indicates moderate volatility relative to the broader market.

  • Dividend Attractiveness: With a dividend yield of 0.84% and a payout ratio of 26.73%, Microsoft offers attractive returns for income-focused investors while maintaining significant reinvestment potential.

Competitive Dynamics and Strategic Considerations

  • Dominance in Key Markets: Microsoft's leadership in productivity software (Office, Teams) and cloud services (Azure) positions it as a key player in the tech sector. Its ability to innovate and maintain market share will be critical for sustained growth.

  • Strategic Focus on AI and Cloud: The integration of AI into products like Microsoft 365 Copilot underscores its strategic focus on high-growth areas, which aligns with broader industry trends.

  • Regulatory Risks: As a dominant player in multiple markets, Microsoft faces potential regulatory scrutiny, particularly in antitrust issues. However, the text does not indicate ongoing disputes or risks.

Long-Term Effects and Industry Implications

  • Growth Prospects: Analysts expect EPS of 13.08 for the current fiscal year, reflecting strong earnings growth. This aligns with Microsoft's history of consistent performance and its position as a bellwether in the tech industry.

  • Sector-Wide Impact: Microsoft's performance has implications for the broader tech sector, influencing investor sentiment and market trends. Its success may drive further investment in similar high-growth companies.

Conclusion

Coastwise Capital Group LLC's increased stake in Microsoft, coupled with significant investments by other institutional players and positive analyst sentiment, highlights Microsoft's position as a key growth driver in the tech sector. While valuations are elevated, the company's strong earnings, dividend yield, and strategic focus on innovation suggest continued appeal for investors. Long-term implications include sustained dominance in key markets and potential leadership in emerging technologies like AI and cloud computing.