Microsoft (NASDAQ:MSFT) Given Buy Rating at JPMorgan Chase & Co.

Key Points

• JPMorgan reaffirmed its “buy” rating on Microsoft, adding to broad analyst support. The stock has a “Moderate Buy” consensus rating, with 43 Buy, four Hold and one Sell rating and an average price target of $569.29.
• Microsoft reported quarterly EPS of $4.74, beating estimates of $4.24, while revenue rose 17.7% year over year to $90.01 billion. Shares opened at $509.64, giving the company a market capitalization of roughly $3.78 trillion.
• Several executives, including CEO Satya Nadella, recently sold shares totaling about $71.4 million over the last quarter. Meanwhile, institutional investors own approximately 71.13% of Microsoft’s stock.

Microsoft (NASDAQ:MSFT - Get Free Report)'s stock had its "buy" rating reissued by equities researchers at JPMorgan Chase & Co. in a research report issued to clients and investors on Monday.

A number of other research analysts also recently issued reports on MSFT. Tigress Financial boosted their price target on Microsoft from $680.00 to $690.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Microsoft in a research note on Monday, July 20th. Needham & Company LLC initiated coverage on shares of Microsoft in a research report on Wednesday. They set a "buy" rating on the stock. Scotiabank reaffirmed an "outperform" rating and issued a $510.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Finally, Jefferies Financial Group restated a "buy" rating on shares of Microsoft in a report on Monday, September 21st. Forty-three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $569.29.

Microsoft Stock Down 1.3%

Shares of NASDAQ MSFT opened at $509.64 on Monday. The company has a market cap of $3.78 trillion, a price-to-earnings ratio of 28.38, a PEG ratio of 1.66 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm's fifty day moving average is $477.93 and its 200 day moving average is $426.29. Microsoft has a 52 week low of $349.20 and a 52 week high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to analyst estimates 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 last year, the firm earned $3.65 EPS. On average, equities research analysts expect that Microsoft will post 19.62 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Satya Nadella sold 86,525 shares of the firm'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 transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a 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, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, 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 position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is currently owned by corporate insiders.

Institutional Trading of Microsoft

Several institutional investors have recently bought and sold shares of MSFT. Montgomery Financial Services LLC bought a new stake in shares of Microsoft in the 2nd quarter worth $26,000. Frankly Finances LLC bought a new position in shares of Microsoft during the second quarter valued at $35,000. Bard Associates Inc. purchased a new stake in shares of Microsoft during the second quarter valued at $37,000. PMV Capital Advisers LLC bought a new stake in Microsoft in the 2nd quarter worth about $38,000. Finally, Fiduciary Advisors Inc. increased its holdings in Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant's stock worth $47,000 after buying an additional 34 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Copilot overhaul strengthens Microsoft’s AI growth narrative. Microsoft reportedly redesigned Copilot to compete more directly with Anthropic’s Claude and added agent-style capabilities across workplace applications. The changes are viewed as improving user engagement and creating additional opportunities to monetize Microsoft 365 and enterprise AI. Microsoft Stock Surges Following Copilot Overhaul
• Positive Sentiment: Analysts continue to endorse MSFT. William Blair maintained a Buy rating, citing potentially undervalued Copilot monetization and Microsoft’s expanding enterprise AI platform. Oppenheimer also raised its price target to $570, reinforcing expectations that Azure and Copilot can support sustained growth. Microsoft Buy Rating and AI Opportunity
• Positive Sentiment: GitHub’s coding technology is being distributed to a broader audience. Microsoft added a Code tool to its Copilot app that allows office workers to create applications and dashboards using natural-language prompts. Investors may view this as a way to expand Copilot usage beyond professional developers and support wider enterprise adoption. Microsoft Adds GitHub Coding Engine to Copilot
• Positive Sentiment: Cloud and AI demand remain the central long-term catalyst. Reports highlight Microsoft’s plans to expand data-center capacity substantially and its Gulf-region cloud and AI investments. The spending is costly, but could support Azure growth and address capacity constraints if AI demand continues accelerating.
• Neutral Sentiment: Political scrutiny introduces a potential policy risk. Senator Elizabeth Warren and other lawmakers requested information from Microsoft and other technology companies about tax subsidies for AI and data-center development. The inquiry does not change current operations but could affect future incentives, costs, or regulation. Senate Questions Big Tech AI Subsidies
• Negative Sentiment: Investors are monitoring the cost and execution risks of the AI buildout. Tripling data-center capacity would require substantial capital spending, making Azure growth and returns on infrastructure investment increasingly important. Separately, reported insider transactions show selling by several executives, though such sales are not necessarily an indication of deteriorating fundamentals.

Microsoft Company Profile

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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