Microsoft (NASDAQ:MSFT) Trading Down 1.1% – Time to Sell?

Microsoft Corporation (NASDAQ:MSFT) shares were down 1.1% during mid-day trading on Tuesday . The company traded as low as $394.53 and last traded at $396.86. Approximately 31,873,937 shares were traded during trading, a decline of 17% from the average daily volume of 38,453,379 shares. The stock had previously closed at $401.32.

Key Stories Impacting Microsoft

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

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on MSFT shares. Deutsche Bank Aktiengesellschaft reduced their target price on Microsoft from $630.00 to $575.00 and set a “buy” rating on the stock in a research note on Thursday, January 29th. Wolfe Research lowered their price target on shares of Microsoft from $625.00 to $530.00 and set an “outperform” rating for the company in a report on Thursday, January 29th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a report on Thursday, January 29th. New Street Research lifted their price objective on Microsoft from $670.00 to $675.00 and gave the company a “buy” rating in a research report on Thursday, January 29th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and set a $590.00 price objective on shares of Microsoft in a research note on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $591.95.

Microsoft Price Performance

The company’s fifty day moving average is $458.94 and its two-hundred day moving average is $491.45. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. The firm has a market cap of $2.95 trillion, a price-to-earnings ratio of 24.82, a price-to-earnings-growth ratio of 1.57 and a beta of 1.08.

Microsoft (NASDAQ:MSFT) last posted its earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.86 by $0.28. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The business had revenue of $81.27 billion during the quarter, compared to analyst estimates of $80.28 billion. During the same quarter last year, the firm earned $3.23 earnings per share. The company’s revenue for the quarter was up 16.7% compared to the same quarter last year. Equities research analysts forecast that Microsoft Corporation will post 13.08 EPS for the current year.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders 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 annualized dividend and a dividend yield of 0.9%. Microsoft’s dividend payout ratio (DPR) is currently 22.76%.

Insider Buying and Selling

In other Microsoft news, CEO Judson Althoff sold 12,750 shares of the firm’s stock in a transaction on 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 transaction, the chief executive officer directly owned 129,349 shares of the company’s stock, valued at $63,577,620.48. This trade represents a 8.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Takeshi Numoto sold 2,850 shares of the stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $478.72, for a total transaction of $1,364,352.00. Following the transaction, the executive vice president directly owned 55,782 shares in the company, valued at $26,703,959.04. The trade was a 4.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.03% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC lifted its stake in Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after buying an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new position in Microsoft in the 4th quarter worth about $34,000. Bayforest Capital Ltd bought a new stake in shares of Microsoft during the third quarter valued at approximately $38,000. Timmons Wealth Management LLC bought a new stake in shares of Microsoft during the fourth quarter valued at approximately $36,000. Finally, Fairway Wealth LLC boosted its position in shares of Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after buying an additional 66 shares during the period. Institutional investors and hedge funds own 71.13% of the company’s stock.

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).