Microsoft Corporation (MSFT) Appears to Have More Issues Brewing for Them in China


Today should be an interesting day for shares of Microsoft Corporation (NASDAQ:MSFT), after it has been reported that the company is looking at facing some potentially serious antitrust issues in China. We all know how China can be to large companies, especially those which threaten some of the country’s home-grown businesses. However, it appears as though this latest roadblock comes on the heels of China’s investigation into Microsoft Corporation (NASDAQ:MSFT) back in August of 2014. At that time, the SAIC raided offices of Microsoft, took files, and investigated how the company has been run.

Apparently the Chinese authorities have a few issues that are causing some concerns with their antitrust regulations. They, for one, don’t like the way the company bundles some of their software (Windows & Microsoft Office), and this may just be the start. The Government in China is not divulging much information on the actual questions that they have for Microsoft Corporation (NASDAQ:MSFT), but certainly this stands to be a roadblock of sorts for the company, one that may not go away anytime soon.

The stock closed at $55.05 during the last trading session. It is up 17.33% since June 2, 2015 and is uptrending. It has outperformed the S&P500 by 22.02%.

From a total of 16 analysts covering Microsoft Corporation (NASDAQ:MSFT) stock, 12 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $65 while the lowest target price is $20. The mean of all analyst targets is $52.86 which is -3.98% below today’s ($55.05) stock price. Microsoft Corporation was the topic of 32 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Goldman Sachs upgraded shares on December 18 to a “Neutral” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $47.60 target share price in their report from a September 2. Raymond James upgraded MSFT stock in a recent report from November 30 to a “Strong Buy” rating. Global Equities Research maintained the rating on August 28. Global Equities Research has a “Overweight” rating and a $50 price target on shares. Finally, Piper Jaffray maintained the stock with a “Overweight” rating in a report they issued on a November 10.

The institutional sentiment increased to 1.08 in Q2 2015. It’s up 0.32, from 0.76 in 2015Q2. The ratio increased, as 69 funds sold all their Microsoft Corporation shares they owned while 801 reduced their positions. 93 funds bought stakes while 843 increased their total positions. Institutions now own 5.20 billion shares which is 8.27% less than the previous share count of 5.67 billion in 2015Q2.

Cook & Bynum Capital Management Llc holds 25.5% of its total portfolio in Microsoft Corporation, equating to 717,081 shares. Rwwm Inc. owns 895,414 shares representing 19.69% of their total US portfolio. Moreover, Valueact Holdings L.P. has 19.37% of their total portfolio invested in the company, equating to 75.27 million shares. The California-based Smithwood Advisers L.P. has a total of 17.28% of their portfolio invested in the stock. Deccan Value Investors L.P., a Connecticut-based fund reported 2.26 million shares owned.

Since April 28, 2015, the stock had 0 insider buys, and 4 sales for a total of $370.34 million in net activity. Gates William H Iii sold 4.00M shares worth $185.75M. Turner Brian Kevin sold 69,158 shares worth $3.16 million. Capossela Christopher C sold 4,485 shares worth $218,464. Brod Frank H sold 4,500 shares worth $215,294.

Microsoft Corporation is engaged in developing, licensing and supporting a range of software services and products. The company has a market cap of $439.73 billion. The Firm also creates and sells hardware, and delivers online advertising to the customers. It has 36.99 P/E ratio. The Firm operates in five divisions: Devices and Consumer Licensing, D&C Hardware, D&C Other, Commercial Licensing, and Commercial Other.