Melius Research Downgrades Microsoft (NASDAQ:MSFT) to Hold

Posted by ABMN Staff on Feb 11th, 2026

Microsoft (NASDAQ:MSFT – Get Free Report) was downgraded by Melius Research from a “buy” rating to a “hold” rating in a report issued on Monday, Marketbeat.com reports.

MSFT has been the topic of a number of other research reports. Wells Fargo & Company cut their price target on shares of Microsoft from $630.00 to $615.00 and set an “overweight” rating on the stock in a research report on Thursday, January 29th. Wolfe Research dropped their price objective on Microsoft from $625.00 to $530.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Citigroup decreased their target price on Microsoft from $660.00 to $635.00 and set a “buy” rating for the company in a research note on Thursday, January 29th. New Street Research lifted their target price on Microsoft from $670.00 to $675.00 and gave the stock a “buy” rating in a report on Thursday, January 29th. Finally, Wedbush dropped their price target on Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Microsoft presently has an average rating of “Moderate Buy” and a consensus price target of $591.95.

Check Out Our Latest Analysis on MSFT

Microsoft Stock Performance

NASDAQ:MSFT opened at $413.27 on Monday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. Microsoft has a fifty-two week low of $344.79 and a fifty-two week high of $555.45. The company has a 50 day simple moving average of $465.44 and a two-hundred day simple moving average of $494.72. The company has a market capitalization of $3.07 trillion, a PE ratio of 25.85, a P/E/G ratio of 1.62 and a beta of 1.08.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The firm had revenue of $81.27 billion for the quarter, compared to the consensus estimate of $80.28 billion. During the same quarter in the previous year, the company earned $3.23 EPS. The company’s revenue for the quarter was up 16.7% on a year-over-year basis. Research analysts anticipate that Microsoft will post 13.08 earnings per share for the current year.

Insider Buying and Selling at Microsoft

In other news, CEO Judson Althoff sold 12,750 shares of the business’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the completion of the sale, the chief executive officer directly owned 129,349 shares of the company’s stock, valued at $63,577,620.48. The trade was a 8.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Takeshi Numoto sold 2,850 shares of the firm’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $478.72, for a total transaction of $1,364,352.00. Following the completion of the transaction, the executive vice president directly owned 55,782 shares in the company, valued at approximately $26,703,959.04. The trade was a 4.86% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in Microsoft by 2.3% in the 4th quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant’s stock worth $347,211,391,000 after purchasing an additional 15,955,898 shares in the last quarter. State Street Corp boosted its stake in shares of Microsoft by 1.1% in the 2nd quarter. State Street Corp now owns 299,196,519 shares of the software giant’s stock worth $148,823,341,000 after buying an additional 3,166,275 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Microsoft by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant’s stock worth $88,056,019,000 after buying an additional 1,911,142 shares during the last quarter. Norges Bank bought a new position in shares of Microsoft in the fourth quarter valued at approximately $50,664,631,000. Finally, Northern Trust Corp increased its position in shares of Microsoft by 16.1% during the fourth quarter. Northern Trust Corp now owns 83,787,746 shares of the software giant’s stock valued at $35,316,535,000 after acquiring an additional 11,600,470 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Microsoft clarified Copilot user and monetization details, reducing uncertainty about one of its key AI revenue drivers — this helped the stock rebound after recent weakness. Microsoft Fills in Gaps on Copilot Numbers, Microsoft Stock (NASDAQ:MSFT) Gains
Positive Sentiment: Fresh optimism around OpenAI’s improving finances is lifting AI-linked names (including Microsoft, a major OpenAI backer), supporting sentiment for MSFT shares. AI Giant OpenAI Is Getting a Lift Lately. So Are Stocks Linked to It.
Positive Sentiment: Microsoft is exploring superconducting power lines for data centers, a potential efficiency win that could lower long‑term operating costs as it scales cloud capacity for AI workloads. Microsoft exploring using advanced power lines to make data centers more energy-efficient
Positive Sentiment: Institutional buying: Diamond Hill Capital increased its MSFT stake, a sign of continued conviction from some long‑term investors. Diamond Hill Capital Management Inc Boosts Microsoft Stake
Neutral Sentiment: Technically, the recent bounce is constructive but analysts warn MSFT needs to reclaim its 200‑day moving average before a sustained uptrend resumes — short-term resistance remains. Microsoft is Bouncing Back from Its Post-Earnings Price Crash, But Watch This Before You Buy MSFT Stock
Negative Sentiment: Melius Research downgraded MSFT to Hold, flagging elevated AI capex and cash‑flow risks tied to aggressive AI infrastructure spending — a direct near‑term headwind for valuation. Stock Market Today, Feb. 10: Microsoft Stock Slips on Melius Downgrade Over AI Spending Risks
Negative Sentiment: Broader concerns persist: commentators point to below‑expectations Azure growth and say Microsoft needs to better articulate its AI investment payback, contributing to caution among some investors and analysts. Jim Cramer on Microsoft (MSFT): “I Think They Need to Explain Their Story Better”

Microsoft Company Profile

(Get Free Report)

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).