Cantor Fitzgerald Issues Positive Forecast for Microsoft (NASDAQ:MSFT) Stock Price

Key Points

• Cantor Fitzgerald raised Microsoft’s price target from $522 to $608 while maintaining an “overweight” rating, implying 23.13% upside from the reported current price.
• Analyst sentiment remains favorable: 42 analysts rate Microsoft a Buy and five a Hold, producing a consensus “Moderate Buy” rating and an average price target of $567.07.
• Microsoft exceeded quarterly expectations, reporting $4.74 in earnings per share and $90.01 billion in revenue, with revenue up 17.7% year over year. However, insiders have sold about $71.4 million of stock over the past 90 days.

Microsoft (NASDAQ:MSFT - Get Free Report) had its price objective lifted by Cantor Fitzgerald from $522.00 to $608.00 in a research note issued on Monday, Benzinga reports. The brokerage currently has an "overweight" rating on the software giant's stock. Cantor Fitzgerald's price target indicates a potential upside of 23.13% from the company's current price.

Several other research firms also recently weighed in on MSFT. Bank of America boosted their target price on shares of Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research report on Tuesday, September 1st. Phillip Securities downgraded shares of Microsoft from a "strong-buy" rating to a "moderate buy" rating in a research note on Monday, August 3rd. UBS Group set a $525.00 target price on Microsoft in a research report on Thursday, July 30th. Benchmark restated a "buy" rating on shares of Microsoft in a research note on Friday, July 24th. Finally, Evercore set a $528.00 price target on Microsoft in a research report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Microsoft presently has a consensus rating of "Moderate Buy" and a consensus price target of $567.07.

Microsoft Price Performance

NASDAQ:MSFT opened at $493.78 on Monday. 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 stock has a market capitalization of $3.67 trillion, a P/E ratio of 27.49, a P/E/G ratio of 1.59 and a beta of 1.11. The company's 50-day simple moving average is $466.97 and its 200-day simple moving average is $422.94. Microsoft has a fifty-two week low of $349.20 and a fifty-two week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its quarterly earnings data 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 return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. During the same quarter last year, the firm earned $3.65 EPS. The business's quarterly revenue was up 17.7% on a year-over-year basis. On average, equities analysts anticipate that Microsoft will post 19.61 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Satya Nadella sold 86,525 shares of the firm's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares of the company's stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company's stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 143,009 shares of company stock worth $71,420,699. Corporate insiders own 0.03% of the company's stock.

Hedge Funds Weigh In On Microsoft

Several institutional investors have recently made changes to their positions in the company. Bank of America Corp DE purchased a new position in shares of Microsoft in the 2nd quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Microsoft by 0.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant's stock worth $24,013,297,000 after purchasing an additional 543,172 shares during the period. Auto Owners Insurance Co boosted its position in Microsoft by 56,160.8% during 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 purchasing an additional 60,009,531 shares in the last quarter. Legal & General Group Plc acquired a new stake in Microsoft in the second quarter valued at approximately $18,306,443,000. Finally, Amundi grew its holdings in Microsoft by 12.0% in the second quarter. Amundi now owns 46,694,778 shares of the software giant's stock valued at $17,418,076,000 after purchasing an additional 5,019,702 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Institutional endorsement: Bill Ackman’s Pershing Square reportedly built a $2.4 billion Microsoft position and considers the company a “core holding” purchased at a compelling valuation. The move may reinforce confidence in Microsoft’s long-term earnings and AI prospects. Bill Ackman Built a $2.4 Billion Stake in Microsoft
• Positive Sentiment: Higher earnings expectations: Erste Group Bank raised its earnings estimates for Microsoft, a potentially supportive signal for the stock’s valuation and outlook. Erste Group Bank Raises Earnings Estimates for Microsoft
• Positive Sentiment: Dividend increase: Microsoft boosted its quarterly dividend, while Morgan Stanley highlighted the company’s return prospects. The increase adds to shareholder returns and reflects confidence in recurring cash flow, although Microsoft’s yield remains modest. Microsoft Boosts Quarterly Dividend as Morgan Stanley Highlights Return Prospects
• Positive Sentiment: Potential diplomatic engagement: Microsoft CEO Satya Nadella is expected to attend a Trump-Xi state dinner alongside other technology leaders. Discussions involving AI cooperation, national security and U.S.-China technology competition could create opportunities for improved communication, though policy outcomes are uncertain. Tech Giants Including Microsoft, Nvidia and OpenAI CEOs Set for Trump-Xi State Dinner
• Neutral Sentiment: AI infrastructure demand: Microsoft’s $9.7 billion agreement with IREN is being portrayed as increasingly productive one year after signing, supporting the broader thesis that cloud and AI infrastructure demand will drive Microsoft growth. One Year Into the Microsoft Deal, IREN Is Delivering
• Negative Sentiment: AI backlash and communication concerns: Sam Altman acknowledged that the AI industry has done a poor job explaining its benefits, while Microsoft faces scrutiny over AI’s costs, risks and societal impact. This could weigh on sentiment if investors become more concerned about regulation or returns on AI investment. Sam Altman Admits the AI Industry Has Done a Terrible Job Explaining Its Benefits
• Negative Sentiment: Competitive and market-rotation risks: Analysts are highlighting rapid profit growth at semiconductor company Micron and a broader rotation away from mega-cap stocks. These themes could challenge Microsoft’s premium valuation despite its strong recent earnings growth. Prediction: Micron Will Earn More Profit Than Microsoft in Fiscal 2027
• Negative Sentiment: Geopolitical uncertainty: Coverage notes that geopolitical risks are clouding the outlook for global technology companies, potentially affecting Microsoft’s international operations, supply chains and AI partnerships. Microsoft Stock Price Gains as Geopolitical Risk Clouds Outlook for Global Tech

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.

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