Dala Group LLC Makes New Investment in Microsoft Corporation $MSFT

Key Points

• Dala Group LLC acquired 4,762 Microsoft shares worth approximately $1.78 million during the second quarter, making Microsoft about 1.5% of its portfolio. Institutional investors collectively own 71.13% of Microsoft.
• Analyst sentiment remains positive, with 42 Buy ratings and a consensus “Moderate Buy” rating; the average price target is $578.73. Microsoft’s latest quarter also exceeded expectations, with revenue up 17.7% year over year and EPS of $4.74.
• Microsoft’s shares recently traded near $535, while the company raised its quarterly dividend from $0.91 to $0.98 per share. Growth catalysts include AI, Azure and Copilot, though labor and gaming-related regulatory issues pose risks.

Dala Group LLC acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 4,762 shares of the software giant's stock, valued at approximately $1,776,000. Microsoft accounts for about 1.5% of Dala Group LLC's investment portfolio, making the stock its 16th biggest holding.

A number of other large investors have also made changes to their positions in the stock. Strategic Wealth Advisors LLC raised its holdings in Microsoft by 1.7% in the 2nd quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant's stock valued at $549,000 after acquiring an additional 24 shares in the last quarter. Friedenthal Financial lifted its position in shares of Microsoft by 6.2% in the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant's stock worth $160,000 after acquiring an additional 25 shares during the period. Sequent Planning LLC lifted its position in shares of Microsoft by 0.7% in the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant's stock worth $1,382,000 after acquiring an additional 25 shares during the period. Lee Johnson Capital Management LLC grew its holdings in shares of Microsoft by 3.8% during the 2nd quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant's stock worth $256,000 after purchasing an additional 25 shares in the last quarter. Finally, Riverpoint Wealth Management Holdings LLC grew its holdings in shares of Microsoft by 0.5% during the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant's stock worth $2,052,000 after purchasing an additional 26 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company's stock.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Benchmark restated a "buy" rating on shares of Microsoft in a research report on Friday, July 24th. CLSA reaffirmed an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. Wells Fargo & Company lifted their price target on shares of Microsoft from $700.00 to $725.00 and gave the stock an "overweight" rating in a research note on Thursday, October 1st. Sanford C. Bernstein set a $660.00 price target on shares of Microsoft in a report on Monday, August 10th. Finally, Weiss Ratings raised shares of Microsoft from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday. Forty-two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $578.73.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1
• Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating
• Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra
• Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation
• Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit
• Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program
• Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation

Microsoft Stock Up 2.4%

Microsoft stock opened at $535.07 on Friday. The firm has a market cap of $3.97 trillion, a price-to-earnings ratio of 29.79, a PEG ratio of 1.72 and a beta of 1.10. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The firm has a 50 day moving average price of $501.15 and a two-hundred day moving average price of $434.73.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the firm posted $3.65 EPS. The company's quarterly revenue was up 17.7% on a year-over-year basis. Equities analysts predict that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft's previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft's dividend payout ratio (DPR) is presently 20.27%.

Insider Activity

In other news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares of the company's stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company's stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is owned by insiders.

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft's productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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