Microsoft (NASDAQ:MSFT) Shares Down 1.4% on Analyst Downgrade

Shares of Microsoft Corporation (NASDAQ:MSFT) fell 1.4% during trading on Thursday after Weiss Ratings downgraded the stock from a buy (b-) rating to a hold (c+) rating. The stock traded as low as $365.19 and last traded at $365.97. 36,488,720 shares were traded during mid-day trading, an increase of 1% from the average session volume of 36,228,168 shares. The stock had previously closed at $371.04.

MSFT has been the topic of a number of other reports. UBS Group reduced their target price on shares of Microsoft from $600.00 to $510.00 and set a “buy” rating on the stock in a report on Wednesday. The Goldman Sachs Group reiterated a “buy” rating on shares of Microsoft in a research note on Thursday, February 12th. Barclays reissued an “overweight” rating on shares of Microsoft in a research note on Monday, March 9th. Piper Sandler reaffirmed an “overweight” rating and issued a $600.00 price target (down from $650.00) on shares of Microsoft in a research report on Thursday, January 29th. Finally, Daiwa Securities Group lowered their price objective on Microsoft from $630.00 to $600.00 and set a “buy” rating for the company in a research report on Wednesday, February 4th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $588.97.

Insider Buying and Selling

In related news, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction on Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the sale, the executive vice president directly owned 137,933 shares in the company, valued at $56,486,322.16. This trade represents a 8.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John W. Stanton acquired 5,000 shares of the firm’s stock in a transaction on Wednesday, February 18th. The stock was bought at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the purchase, the director directly owned 83,905 shares of the company’s stock, valued at $33,339,651.75. This represents a 6.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.03% of the stock is currently owned by company insiders.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Some Wall Street analysts still see large upside for MSFT, arguing the pullback may be overdone and presenting a buying opportunity for long‑term investors. Wall Street Says Microsoft Stock Has 89% Rebound Potential
• Positive Sentiment: Fundamental revenue drivers remain: LinkedIn ad growth and marketing solutions are cited as near‑term revenue positives that help offset AI spending concerns. Microsoft Benefits From LinkedIn Ad Growth: More Upside Ahead?
• Neutral Sentiment: Microsoft has implemented targeted hiring freezes in major cloud and North American sales groups while keeping AI and engineering hiring active — a cost‑management move that highlights prioritization of AI infrastructure but leaves uncertainty over near‑term sales execution. Microsoft freezes hiring in major cloud, sales groups, The Information reports
• Neutral Sentiment: Infrastructure expansion continues: third‑party partner Crusoe announced a 900 MW AI campus in Abilene, Texas to support large‑scale workloads for Microsoft — this reinforces demand for hyperscale capacity even as investors debate ROI timing. Crusoe Announces New 900 MW AI Factory Campus in Abilene, Texas to Support Microsoft AI Infrastructure
• Negative Sentiment: Market narrative has flipped: analysts and commentary say Microsoft is “losing the AI narrative,” and technical indicators show the stock at decade‑low oversold levels — fueling momentum selling. Microsoft’s stock hasn’t been this oversold in a decade, with the tech giant ‘really losing the AI narrative’
• Negative Sentiment: Heavy AI capex and execution concerns: multiple reports highlight Microsoft’s very large AI spending (reports cite ~$30B per quarter-level scale), slowing Copilot adoption vs. expectations, and the stock is on track for its worst quarter since 2008 — pressuring valuations and near‑term sentiment. Microsoft Is Down 24% This Year While Spending $30B a Quarter on AI
• Negative Sentiment: Competitive and strategic risks are rising: OpenAI and other AI firms (including reports of Anthropic eyeing an IPO) are evolving relationships and competition that could reduce Microsoft’s exclusive leverage in parts of the AI stack. Anthropic eyes IPO, Microsoft stock set for worst quarter since 2008

Institutional Investors Weigh In On Microsoft

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC raised its stake in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after acquiring an additional 20 shares during the last quarter. Bernzott Capital Advisors purchased a new stake in shares of Microsoft during the fourth quarter worth approximately $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft during the fourth quarter worth $36,000. Bayforest Capital Ltd purchased a new position in Microsoft in the 3rd quarter valued at $38,000. Finally, Fairway Wealth LLC increased its stake 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 buying an additional 66 shares during the period. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft Stock Performance

The company has a market cap of $2.65 trillion, a PE ratio of 22.31, a P/E/G ratio of 1.39 and a beta of 1.10. The stock’s 50-day simple moving average is $409.36 and its 200 day simple moving average is $467.65. 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 (NASDAQ:MSFT) last posted its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts’ expectations of $80.28 billion. During the same period in the prior year, the company posted $3.23 earnings per share. The firm’s revenue for the quarter was up 16.7% on a year-over-year basis. As a group, equities analysts anticipate that Microsoft Corporation will post 13.08 EPS for the current year.

Microsoft Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a $0.91 dividend. The ex-dividend date is Thursday, May 21st. This represents a $3.64 annualized dividend and a yield of 1.0%. Microsoft’s dividend payout ratio is presently 22.76%.

About Microsoft

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).