Dala Group LLC Takes Position in Microsoft Corporation $MSFT

Key Points

• Dala Group LLC initiated a Microsoft position of 4,833 shares valued at approximately $1.8 million, representing 1.5% of its portfolio. Institutional investors and hedge funds collectively own 71.13% of Microsoft.
• Microsoft reported strong quarterly results, with earnings of $4.74 per share and revenue of $90.01 billion, exceeding analyst expectations; revenue increased 17.7% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $560.27.
• Microsoft declared a quarterly dividend of $0.91 per share, equivalent to an annualized $3.64 and a 0.7% yield. Meanwhile, executives sold shares, including 10,000 shares sold by CEO Judson Althoff, as investors weigh the growth potential of AI against significant infrastructure spending and margin concerns.

Dala Group LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 4,833 shares of the software giant's stock, valued at approximately $1,796,000. Microsoft comprises about 1.5% of Dala Group LLC's holdings, making the stock its 17th largest holding.

Other hedge funds also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC grew its position in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Shepherd Kaplan Krochuk LLC boosted its holdings in Microsoft by 4.9% in the third quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant's stock worth $223,000 after purchasing an additional 20 shares during the period. Fischer Investment Strategies LLC increased its stake in Microsoft by 3.1% during the fourth quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant's stock valued at $337,000 after purchasing an additional 21 shares during the last quarter. Pollock Investment Advisors LLC raised its holdings in shares of Microsoft by 0.8% during the third quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant's stock worth $1,453,000 after purchasing an additional 21 shares during the period. Finally, Better Money Decisions LLC lifted its position in shares of Microsoft by 0.6% in the 2nd quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant's stock worth $1,740,000 after buying an additional 21 shares during the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Stock Performance

Shares of MSFT stock opened at $495.40 on Monday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The stock has a fifty day moving average of $411.27 and a two-hundred day moving average of $408.06. The firm has a market capitalization of $3.68 trillion, a PE ratio of 27.58, a price-to-earnings-growth ratio of 1.59 and a beta of 1.10.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to analysts' expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company's revenue was up 17.7% on a year-over-year basis. During the same period in the previous year, the business earned $3.65 earnings per share. As a group, research analysts expect that Microsoft Corporation will post 19.59 EPS for the current year.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft's payout ratio is 20.27%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on MSFT shares. China Renaissance lowered their price objective on shares of Microsoft from $630.00 to $550.00 and set a "buy" rating for the company in a research report on Monday, May 4th. Morgan Stanley reissued an "overweight" rating on shares of Microsoft in a report on Thursday, July 30th. Piper Sandler upped their price objective on Microsoft from $540.00 to $550.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 28th. Mizuho cut their target price on Microsoft from $515.00 to $490.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 15th. Finally, Argus reduced their price target on shares of Microsoft from $620.00 to $510.00 and set a "buy" rating for the company in a report on Friday, July 10th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $560.27.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts continue to highlight Microsoft’s Azure expansion, accelerating Microsoft 365 Copilot adoption, and the company’s ability to sustain double-digit earnings growth. Microsoft’s latest quarter also exceeded expectations, with revenue of approximately $90 billion and earnings growth supported by Azure. Microsoft’s Cloud Gains Can Sustain Double-Digit Earnings Growth
• Positive Sentiment: JPMorgan raised its Microsoft price target to $625, citing stronger Copilot demand and accelerating infrastructure investment. Other analysts remain bullish, with a six-month median target near $540, reinforcing investor confidence in Microsoft’s long-term AI positioning. JPMorgan Raises Microsoft Price Target
• Positive Sentiment: Microsoft is combining its consumer and enterprise Copilot applications into a unified platform, potentially improving distribution, user engagement, and monetization as it competes with ChatGPT, Gemini, and Claude. Microsoft Unifies Copilot Applications
• Neutral Sentiment: Microsoft approved the first AI data-center deployment under its $9.7 billion agreement with IREN, supporting Azure capacity expansion. The deal improves supply visibility but also underscores Microsoft’s substantial capital requirements. IREN Delivers First AI Cloud Deployment
• Negative Sentiment: Investors remain concerned that Microsoft’s roughly $175 billion AI infrastructure spending plan could pressure free cash flow and cloud margins. A reported decline in cloud gross margin and higher data-center, chip, electricity, and labor costs raise questions about how much of the company’s large AI backlog will translate into profit. Microsoft’s AI Backlog and Profitability Concerns
• Negative Sentiment: Reports that Microsoft has closed at least 15 China offices and joint ventures add geopolitical and operational uncertainty, although Azure reportedly provides a profitable reason to retain a limited China presence. Microsoft Retreats in China

Insider Buying and Selling

In related news, EVP Takeshi Numoto sold 4,810 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares of the company's stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares of the company's stock, valued at $49,007,086.83. This trade represents a 9.05% 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 37,310 shares of company stock valued at $17,256,219. Company insiders own 0.03% of the company's stock.

Microsoft Company Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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