Microsoft (NASDAQ:MSFT) Trading 2.5% Higher – Time to Buy?

Microsoft Corporation (NASDAQ:MSFT)’s share price shot up 2.5% during mid-day trading on Thursday . The stock traded as high as $501.56 and last traded at $499.86. Approximately 35,277,436 shares changed hands during mid-day trading, a decline of 7% from the average session volume of 37,956,461 shares. The stock had previously closed at $487.46.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and AI demand remain the primary catalysts. Microsoft reported fiscal fourth-quarter revenue of $90.01 billion and EPS of $4.74, exceeding estimates. Azure revenue rose 43%, and annual Azure sales surpassed $100 billion, suggesting that AI infrastructure investments are beginning to generate substantial returns. Microsoft Azure Fiscal 2026 Sales Exceed $100B
• Positive Sentiment: International cloud expansion supports longer-term growth. Microsoft opened its largest India data-center hub in Hyderabad and signed early customers including Adani Group and HDFC Bank. The company has committed roughly $20.5 billion to expanding its Indian operations, targeting the country’s growing AI and cloud market. Microsoft opens its largest India data center hub
• Positive Sentiment: Wall Street remains broadly constructive. Citi raised its forecast after the Azure sales acceleration, while Tigress Financial lifted its price target to $690. Recent reports also highlight strong adoption of Microsoft 365 Copilot, which has surpassed 30 million paid users. Citi raises Microsoft stock forecast
• Neutral Sentiment: OpenAI is a major growth driver but also a concentration risk. Reports suggest OpenAI may account for approximately 70% of Microsoft’s AI revenue. The relationship strengthens near-term monetization, but dependence on one partner and model provider could increase execution and competitive risks. OpenAI may account for 70% of Microsoft’s AI revenue
• Negative Sentiment: AI spending is pressuring margins and valuation. Analysts note that Microsoft’s exceptional profitability could face pressure from data-center construction, leases and other infrastructure commitments. After a sharp post-earnings rally, investors may demand continued growth to justify the stock’s elevated multiple.
• Negative Sentiment: Insider selling and legal headlines provide counterweights. EVP Takeshi Numoto sold 4,810 shares for approximately $2.4 million, reducing his direct holdings by about 10%. Separately, several law firms publicized a securities-fraud class action alleging misleading AI-related statements, with an August 11 lead-plaintiff deadline. Microsoft EVP sells shares

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on MSFT shares. Royal Bank Of Canada restated an “outperform” rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. HSBC reduced their price objective on Microsoft from $593.00 to $571.00 in a report on Thursday, April 30th. Dbs Bank decreased their target price on Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. Guggenheim reaffirmed a “buy” rating and set a $586.00 price target on shares of Microsoft in a report on Monday, July 27th. Finally, Piper Sandler boosted their price objective on shares of Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a report on Tuesday, July 28th. Forty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $558.87.

Microsoft Price Performance

The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The firm has a fifty day simple moving average of $402.41 and a two-hundred day simple moving average of $406.03. The firm has a market cap of $3.71 trillion, a PE ratio of 27.83, a PEG ratio of 1.59 and a beta of 1.11.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate 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 return on equity of 31.98% and a net margin of 40.31%.The company’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the firm earned $3.65 EPS. Equities analysts predict that Microsoft Corporation will post 19.56 EPS for the current fiscal year.

Microsoft Dividend Announcement

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

Insider Buying and Selling at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 28,572 shares of company stock worth $12,896,430 over the last 90 days. 0.03% of the stock is owned by insiders.

Institutional Investors Weigh In On Microsoft

Several large investors have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC grew its holdings 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 during the period. Shepherd Kaplan Krochuk LLC raised its holdings in Microsoft by 4.9% in the 3rd quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock valued at $223,000 after acquiring an additional 20 shares during the last quarter. Better Money Decisions LLC lifted its position in Microsoft by 0.6% during the second 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 period. Endowment Wealth Management Inc. lifted its holdings in shares of Microsoft by 0.4% during the 3rd quarter. Endowment Wealth Management Inc. now owns 5,251 shares of the software giant’s stock worth $2,720,000 after acquiring an additional 21 shares during the period. Finally, Pollock Investment Advisors LLC boosted its holdings in shares of Microsoft by 0.8% in the 3rd quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock valued at $1,453,000 after purchasing an additional 21 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

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).