Microsoft Corporation (NASDAQ:MSFT) Stock Now Rated “Moderate Buy” by Sell-Side Analysts

Shares of Microsoft Corporation (NASDAQ:MSFT) have been assigned a consensus rating of “Moderate Buy” from the forty-eight ratings firms that are covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and forty-one have given a buy rating to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $578.73.

MSFT has been the topic of several recent research reports. KeyCorp reissued an “overweight” rating on shares of Microsoft in a report on Thursday, September 3rd. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Microsoft in a report on Monday, July 20th. William Blair initiated coverage on Microsoft in a research note on Monday. They set an “outperform” rating on the stock. Scotiabank boosted their price target on Microsoft from $510.00 to $615.00 and gave the stock an “outperform” rating in a report on Monday. Finally, Rothschild & Co Redburn set a $440.00 price objective on Microsoft in a research note on Monday, September 21st.

Microsoft Price Performance

Shares of NASDAQ:MSFT opened at $529.76 on Thursday. The company has a market cap of $3.93 trillion, a price-to-earnings ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The firm has a 50 day simple moving average of $498.31 and a 200 day simple moving average of $433.03. Microsoft has a one year low of $349.20 and a one year high of $553.72.

Microsoft (NASDAQ:MSFT) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.65 earnings per share. Research analysts predict that Microsoft will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.

Insider Buying and Selling at Microsoft

In other news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 143,009 shares of company stock worth $71,420,699 over the last ninety days. Insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

A number of institutional investors have recently made changes to their positions in MSFT. Montgomery Financial Services LLC bought a new position in Microsoft during the second quarter worth $26,000. Frankly Finances LLC bought a new stake in Microsoft during the second quarter valued at $35,000. Bard Associates Inc. acquired a new stake in Microsoft during the 2nd quarter worth about $37,000. PMV Capital Advisers LLC acquired a new stake in Microsoft during the 2nd quarter worth about $38,000. Finally, Fiduciary Advisors Inc. increased its holdings in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after purchasing an additional 34 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

Microsoft Company Profile

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.