Microsoft (NASDAQ:MSFT) Shares Down 1.2% – Time to Sell?

Shares of Microsoft Corporation (NASDAQ:MSFT) were down 1.2% on Monday . The company traded as low as $359.90 and last traded at $368.57. Approximately 50,565,018 shares traded hands during trading, an increase of 34% from the average daily volume of 37,770,855 shares. The stock had previously closed at $372.97.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Haleon announced a new five-year partnership to expand its use of Microsoft’s AI, cloud, and data tools across global operations, reinforcing Microsoft’s enterprise AI momentum and potential future Azure demand. Why is Microsoft stock gaining 4% today?
• Positive Sentiment: A Jefferies CIO survey said Azure is widening its lead over AWS among U.S. chief information officers, supporting the case that Microsoft is taking share in cloud infrastructure. Microsoft (MSFT) Azure Widens Lead over AWS in Jefferies CIO Survey
• Positive Sentiment: JMP Securities reaffirmed a bullish view on Microsoft after the Copilot Cowork launch, while other analysts continued to highlight Microsoft as an AI leader with upside potential. JMP Securities Reaffirms Bullish Outlook on Microsoft Corporation (MSFT) Following Copilot Cowork Launch
• Neutral Sentiment: Microsoft is reportedly preparing another round of layoffs affecting less than 2.5% of its workforce, including parts of Xbox, sales, and consulting; investors may view this as cost discipline, but it also signals ongoing pressure from heavy AI infrastructure spending. Microsoft plans another round of job cuts, impacting thousands of roles
• Negative Sentiment: Microsoft is facing fresh securities-class-action headlines tied to alleged misstatements about Copilot and Azure functionality, adding legal overhang even if these claims are not yet proven. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Several reports highlighted valuation concerns and recent weakness, with some commentators noting Microsoft’s premium P/E and warning that AI spending is weighing on sentiment and margins. Microsoft Trades at a Premium P/E: Buy, Sell or Hold the Stock Now?

Wall Street Analyst Weigh In

A number of research firms have commented on MSFT. Oppenheimer reissued an “outperform” rating and issued a $515.00 target price (down from $630.00) on shares of Microsoft in a report on Monday, April 27th. Barclays reiterated an “overweight” rating on shares of Microsoft in a report on Wednesday, June 3rd. UBS Group reiterated a “buy” rating on shares of Microsoft in a research note on Friday, April 24th. The Goldman Sachs Group restated a “buy” rating on shares of Microsoft in a research report on Thursday, April 30th. Finally, Guggenheim reaffirmed a “buy” rating and issued a $586.00 target price on shares of Microsoft in a report on Thursday, April 30th. Forty-one investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $560.86.

Microsoft Stock Up 3.0%

The firm’s fifty day simple moving average is $408.34 and its 200-day simple moving average is $419.37. The company has a market cap of $2.85 trillion, a PE ratio of 22.86, a P/E/G ratio of 1.33 and a beta of 1.11. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same period in the previous year, the firm posted $3.46 EPS. The company’s quarterly revenue was up 18.3% compared to the same quarter last year. As a group, equities research analysts expect that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is 21.67%.

Insiders Place Their Bets

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the company’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the sale, the executive vice president directly owned 46,003 shares in the company, valued at $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was 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 of the company’s stock, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 23,762 shares of company stock valued at $10,508,361 in the last quarter. 0.03% of the stock is currently owned by company insiders.

Institutional Trading of Microsoft

A number of institutional investors have recently added to or reduced their stakes in MSFT. WFA Asset Management Corp raised its stake in shares of Microsoft by 27.0% during the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock valued at $427,000 after purchasing an additional 216 shares during the period. Ironwood Wealth Management LLC. grew its holdings in Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC grew its holdings in Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after purchasing an additional 2,138 shares in the last quarter. Wealth Group Ltd. increased its stake in Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after buying an additional 28 shares during the period. Finally, Eagle Capital Management LLC lifted its holdings in Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after buying an additional 96 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other 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).