Microsoft (NASDAQ:MSFT) Given Buy Rating at Jefferies Financial Group

Jefferies Financial Group reissued their buy rating on shares of Microsoft (NASDAQ:MSFT) in a report issued on Monday.

MSFT has been the subject of several other reports. The Goldman Sachs Group reiterated a “buy” rating and issued a $640.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Argus lowered their price objective on Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research note on Friday, July 10th. Weiss Ratings upgraded shares of Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 27th. Raymond James Financial downgraded shares of Microsoft from a “moderate buy” rating to a “strong sell” rating in a research report on Wednesday. Finally, Wolfe Research lowered shares of Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $569.29.

Microsoft Price Performance

Shares of NASDAQ:MSFT opened at $491.97 on Monday. Microsoft has a one year low of $349.20 and a one year high of $553.72. 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 company has a market cap of $3.65 trillion, a price-to-earnings ratio of 27.50, a PEG ratio of 1.60 and a beta of 1.11. The firm has a 50 day simple moving average of $473.55 and a 200 day simple moving average of $424.91.

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. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. During the same quarter in the previous year, the firm posted $3.65 earnings per share. The company’s revenue was up 17.7% on a year-over-year basis. Research analysts predict that Microsoft will post 19.61 earnings per share for the current fiscal year.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is currently 21.83%.

Insider Activity

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’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 owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is owned by insiders.

Hedge Funds Weigh In On Microsoft

Several institutional investors have recently added to or reduced their stakes in MSFT. Bank of America Corp DE purchased a new stake in Microsoft during the second quarter valued at about $27,338,370,000. Auto Owners Insurance Co boosted its holdings in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after acquiring an additional 60,009,531 shares during the period. Legal & General Group Plc bought a new stake in Microsoft during the 2nd quarter worth approximately $18,306,443,000. Jupiter Topco LLC bought a new position in Microsoft in the 2nd quarter worth about $6,928,664,000. Finally, Canada Pension Plan Investment Board bought a new stake in shares of Microsoft during the 2nd quarter valued at about $5,653,812,000. Institutional investors own 71.13% of the company’s stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analyst confidence is improving. Stifel upgraded Microsoft to Buy from Hold and raised its price target to $575, citing Azure growth, Copilot adoption, stable margins and disciplined AI spending. Oppenheimer has also raised its target to $570, reinforcing expectations for additional upside. Microsoft Upgraded as Analyst Sees Steady Margins Even Without Heavy AI Model Spending
• Positive Sentiment: Azure remains the primary growth catalyst. Reports point to a major Azure milestone and two upcoming cloud catalysts that could lead investors to assign a higher valuation to Microsoft’s AI infrastructure and recurring cloud revenue. Strong Azure and Copilot momentum is also expected to support fiscal 2027 growth. Prediction: Microsoft’s Best Growth Opportunity May Still Be Ahead
• Positive Sentiment: Microsoft is expanding its AI infrastructure footprint. The company plans to invest more than $10 billion in Gulf countries through 2030, including cloud, AI infrastructure, cybersecurity and connectivity. The spending could create longer-term regional demand for Azure and related services. Microsoft Plans $10 Billion-Plus Gulf Investment
• Neutral Sentiment: Management is reshaping Microsoft around AI. Leadership is emphasizing an AI-first culture, safety evaluators and “emergency brake” controls for advanced systems. These initiatives may strengthen trust and enterprise adoption, though they also highlight regulatory and execution risks. Microsoft Recasts Culture Around AI
• Negative Sentiment: Risks include AI spending and concentration. Warnings about a potential AI bubble, hyperscaler capital requirements and dependence on a small number of customers could limit valuation expansion if AI demand slows.
• Negative Sentiment: Xbox restructuring remains a modest overhang. Microsoft is cutting hundreds of gaming jobs and transferring the next Halo project to Activision, signaling a broader reset in the gaming division. Microsoft Cuts Hundreds More Jobs in Xbox Overhaul

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.