Microsoft Corporation (NASDAQ:MSFT) Short Interest Up 32.5% in February

Microsoft Corporation (NASDAQ:MSFT) was the recipient of a large increase in short interest in February. As of February 27th, there was short interest totaling 74,347,979 shares, an increase of 32.5% from the February 12th total of 56,124,540 shares. Approximately 1.0% of the company’s stock are sold short. Based on an average trading volume of 32,148,149 shares, the short-interest ratio is currently 2.3 days. Based on an average trading volume of 32,148,149 shares, the short-interest ratio is currently 2.3 days. Approximately 1.0% of the company’s stock are sold short.

Microsoft Stock Performance

Microsoft stock traded down $6.31 on Friday, reaching $395.55. 26,797,224 shares of the stock were exchanged, compared to its average volume of 32,619,302. The company has a current ratio of 1.39, a quick ratio of 1.38 and a debt-to-equity ratio of 0.09. Microsoft has a twelve month low of $344.79 and a twelve month high of $555.45. The firm has a fifty day moving average price of $427.46 and a two-hundred day moving average price of $476.03. The stock has a market cap of $2.94 trillion, a PE ratio of 24.74, a PEG ratio of 1.55 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, topping 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 for the quarter, compared to analyst estimates of $80.28 billion. During the same period in the previous 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. Sell-side analysts anticipate that Microsoft will post 13.08 EPS for the current year.

Microsoft Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a dividend of $0.91 per share. The ex-dividend date is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s payout ratio is 22.76%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MSFT. JPMorgan Chase & Co. dropped their price target on shares of Microsoft from $575.00 to $550.00 and set an “overweight” rating on the stock in a research note on Thursday, January 29th. Mizuho cut their price target on Microsoft from $640.00 to $620.00 and set an “outperform” rating for the company in a research note on Wednesday, January 21st. Wall Street Zen cut Microsoft from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Scotiabank cut their price objective on shares of Microsoft from $650.00 to $600.00 and set a “sector outperform” rating on the stock in a research report on Thursday, January 29th. Finally, BNP Paribas Exane boosted their target price on shares of Microsoft from $632.00 to $659.00 and gave the stock an “outperform” rating in a research report on Tuesday, January 27th. Two equities research analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $591.95.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft has a near-term product catalyst: a $99/month AI tools bundle (includes Copilot capabilities) with a May 1 launch that could drive commercial adoption and recurring ARR growth. Microsoft Is Racing to Beat Claude Cowork. A Big Catalyst for MSFT Stock Is Coming May 1.
• Positive Sentiment: Microsoft is expanding into healthcare AI with Copilot Health (can read medical records and provide personalized insights) and partner integrations, opening a large vertical market and cross‑sell opportunities for Azure and Copilot. Microsoft launched a new healthcare chatbot
• Positive Sentiment: Microsoft 365 E7 bundles Copilot, Anthropic’s Claude Cowork and security tools — a premium enterprise offering that can lift average revenue per user for large customers. Analysts continue to highlight AI-driven revenue upside. Microsoft’s New E7 AI Suite And Healthcare Push Shape Long-Term Outlook
• Neutral Sentiment: Xbox/product cycle news: Microsoft is advancing Project Helix (next‑gen Xbox) but prototypes won’t reach developers until 2027 — positive for long-term console moat but not an immediate revenue driver. Microsoft’s Next Xbox Moves Closer to Reality: What It Means for MSFT Stock
• Neutral Sentiment: Gaming/graphics tech progress (DirectX/advanced shader delivery with NVIDIA/Intel) reduces frictions for PC gaming and helps Xbox/Windows gaming competitiveness but is a more gradual, longer-term tailwind. DirectX Gears Up For ML Era On Windows
• Negative Sentiment: Investor concern about huge AI data‑center capex and public pushback over electricity/costs is weighing on the stock; large lease and buildouts boost growth but increase near‑term cash burn. Who is really footing the AI energy bill? Inside the debate about data center electricity costs
• Negative Sentiment: Security scare: reports of a new vulnerability in Microsoft Authenticator have spooked investors and triggered selling pressure tied to identity/security risk. New Vulnerability in Microsoft Authenticator Sends Microsoft Stock Sliding
• Negative Sentiment: Leadership change: Rajesh Jha, a long‑time head of experiences and devices (Office/Copilot products), announced retirement — creates short‑term execution/transition uncertainty. Microsoft’s Rajesh Jha, head of experiences and devices unit, to retire
• Negative Sentiment: Options and flows show increased demand for downside protection (put-call skew steepening), reflecting trader caution after the pullback. Option traders moderately bearish in Microsoft with shareslittle changed

Insider Transactions at Microsoft

In related news, Director John W. Stanton purchased 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, February 18th. The stock was acquired at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the acquisition, the director owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 137,933 shares in the company, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

A number of institutional investors and hedge funds have recently bought and sold shares of MSFT. IRON Financial LLC boosted its stake in Microsoft by 23.2% in the third quarter. IRON Financial LLC now owns 6,510 shares of the software giant’s stock valued at $3,372,000 after acquiring an additional 1,225 shares during the last quarter. Wellington Capital Management Inc. bought a new stake in shares of Microsoft during the 2nd quarter valued at $9,941,000. Sound View Wealth Advisors Group LLC raised its position in shares of Microsoft by 2.6% during the 2nd quarter. Sound View Wealth Advisors Group LLC now owns 94,120 shares of the software giant’s stock valued at $46,816,000 after acquiring an additional 2,373 shares during the last quarter. Trifecta Capital Advisors LLC lifted its stake in shares of Microsoft by 2.3% in the 3rd quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant’s stock valued at $36,347,000 after purchasing an additional 1,572 shares during the period. Finally, Weaver Capital Management LLC boosted its position in shares of Microsoft by 14.0% in the 3rd quarter. Weaver Capital Management LLC now owns 18,340 shares of the software giant’s stock worth $9,499,000 after purchasing an additional 2,247 shares during the last quarter. Institutional investors 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).