Microsoft Corporation (NASDAQ:MSFT) Given Average Rating of “Moderate Buy” by Analysts

Shares of Microsoft Corporation (NASDAQ:MSFT) have earned an average rating of “Moderate Buy” from the forty-five ratings firms that are currently covering the firm, MarketBeat reports. Four research analysts have rated the stock with a hold recommendation, thirty-nine have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $591.9487.

A number of research firms recently issued reports on MSFT. Daiwa Securities Group dropped their price objective on shares of Microsoft from $630.00 to $600.00 and set a “buy” rating on the stock in a report on Wednesday, February 4th. Raymond James Financial decreased their price target on shares of Microsoft from $630.00 to $600.00 and set an “outperform” rating on the stock in a research report on Thursday, October 30th. Citigroup cut their price objective on shares of Microsoft from $660.00 to $635.00 and set a “buy” rating for the company in a research report on Thursday, January 29th. DA Davidson reaffirmed a “buy” rating and issued a $650.00 target price on shares of Microsoft in a report on Thursday, January 29th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $590.00 target price on shares of Microsoft in a research report on Thursday, January 29th.

Insider Activity at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 2,850 shares of Microsoft stock in a transaction that occurred on 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 transaction, the executive vice president owned 55,782 shares of the company’s stock, valued at $26,703,959.04. The trade was a 4.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of the company’s stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the completion of the transaction, the chief executive officer owned 129,349 shares of the company’s stock, valued at approximately $63,577,620.48. The trade was a 8.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

Institutional investors have recently bought and sold shares of the business. Longfellow Investment Management Co. LLC boosted its stake in 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 purchasing an additional 20 shares during the period. Bernzott Capital Advisors purchased a new position in shares of Microsoft in the fourth quarter worth $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft during the fourth quarter worth $36,000. Bayforest Capital Ltd purchased a new position in Microsoft during the third quarter valued at $38,000. Finally, Fairway Wealth LLC increased its holdings in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after acquiring an additional 66 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft Stock Performance

Shares of MSFT opened at $396.86 on Wednesday. The firm has a market capitalization of $2.95 trillion, a P/E ratio of 24.82, a PEG ratio of 1.57 and a beta of 1.08. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. Microsoft has a one year low of $344.79 and a one year high of $555.45. The business has a fifty day moving average of $457.04 and a 200 day moving average of $490.56.

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

Microsoft Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be paid a dividend of $0.91 per share. The ex-dividend date is Thursday, February 19th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s payout ratio is 22.76%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: SeekingAlpha notes a potential Azure reacceleration that could surprise Wall Street — if Azure growth reaccelerates, revenue and margin outlooks would improve and relieve some valuation pressure. Microsoft’s Azure Reacceleration Could Shock Wall Street
• Positive Sentiment: Coverage arguing Microsoft’s cloud + AI model provides stability — its subscription and enterprise backlog can sustain cash flow while MSFT invests in AI products like Copilot. Microsoft: Cloud And AI-Driven Stability
• Positive Sentiment: Market activity in AI infrastructure suggests durable demand: BlackRock’s big position in Nebius (an AI infra vendor used by MSFT) signals institutional conviction in AI data‑center buildouts that benefit Microsoft’s cloud services. Whale Watching: BlackRock’s Massive Bet on Nebius Group (MSFT)
• Positive Sentiment: Large external capital plans (e.g., Adani’s $100B AI data‑center push with Google & Microsoft ties) point to multi‑year cloud/demand tailwinds for hyperscalers. India’s Adani Group To Invest $100 Billion In AI Data Centers Amid Strategic Partnership With Google, Microsoft
• Neutral Sentiment: Macro bullish view: an AI productivity “miracle” case could lift long‑cycle earnings for cloud/AI leaders, but timing and calibration are uncertain. Scott Bessent’s Case for a 2026 AI Productivity Miracle
• Neutral Sentiment: Analysis noting MSFT’s pullback sets up a potential bull run if AI investments convert into durable revenue — but also highlights recent deceleration drivers that pressured the stock. Why Microsoft Stock Is Bracing For A Bull Run
• Negative Sentiment: Surveys and experts warn Big Tech may be overinvesting in AI infrastructure — that narrative is driving sector multiple compression and investor caution. Investing Experts Sound Alarm on Big Tech’s Massive AI Spending
• Negative Sentiment: Analyst headlines and downgrades (e.g., TipRanks coverage calling a “lose‑lose” scenario and Melius Research moving MSFT to Hold) are pressuring sentiment and can trigger short‑term selling. ‘A Lose-Lose Situation,’ Says Analyst as Microsoft Stock (MSFT) Faces Downgrade Melius Research Downgrades Microsoft Corporation (MSFT) Stock to Hold
• Negative Sentiment: Product/security risk: coverage of “AI recommendation poisoning” highlights emerging AI safety/reputational threats that could dent enterprise adoption or add compliance costs. “AI Recommendation Poisoning”: Microsoft Stock (NASDAQ:MSFT) Sinks on New Threat

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).