Microsoft (NASDAQ:MSFT) Stock Bumped Up to Moderate Buy by Raymond James Financial

Key Points

• Raymond James upgraded Microsoft from “strong sell” to “moderate buy,” while broader analyst sentiment remains positive: 45 analysts rate the stock a Buy and four rate it a Hold. The consensus price target is $596.07.
• Microsoft reported quarterly results above expectations, with $4.89 in EPS and $92.28 billion in revenue, up 18.8% year over year. Azure growth accelerated 48% to approximately $33.2 billion, supported by cloud and AI demand.
• Microsoft shares opened at $531.01 and were down 0.1%, with a market capitalization of roughly $3.94 trillion. Insiders sold about $75.4 million of stock over the past three months, while institutional investors own 71.13% of the company.

Microsoft (NASDAQ:MSFT - Get Free Report) was upgraded by analysts at Raymond James Financial from a "strong sell" rating to a "moderate buy" rating in a report released on Tuesday, Zacks reports.

A number of other brokerages have also recently commented on MSFT. BMO Capital Markets increased their price target on shares of Microsoft from $515.00 to $600.00 and gave the company an "outperform" rating in a research note on Tuesday, October 20th. JPMorgan Chase & Co. restated a "buy" rating on shares of Microsoft in a research note on Monday, September 28th. William Blair began coverage on shares of Microsoft in a report on Monday, October 5th. They issued an "outperform" rating on the stock. Scotiabank reiterated an "outperform" rating on shares of Microsoft in a research note on Monday. Finally, DA Davidson reiterated a "buy" rating and set a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $596.07.

Microsoft Trading Down 0.1%

Shares of Microsoft stock opened at $531.01 on Tuesday. Microsoft has a 12-month low of $349.20 and a 12-month high of $551.15. The stock has a market cap of $3.94 trillion, a P/E ratio of 29.57, a P/E/G ratio of 1.68 and a beta of 1.10. 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 business's 50 day moving average is $511.18 and its 200-day moving average is $437.96.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating the consensus estimate of $4.71 by $0.18. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. During the same quarter in the prior year, the firm posted $4.13 EPS. The firm's revenue for the quarter was up 18.8% compared to the same quarter last year. Equities research analysts predict that Microsoft will post 19.66 earnings per share for the current fiscal year.

Insider Activity at Microsoft

In other Microsoft news, EVP Amy Hood sold 41,674 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the transaction, the executive vice president directly owned 533,624 shares in the company, valued at $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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 the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is owned by company insiders.

Institutional Trading of Microsoft

Hedge funds and other institutional investors have recently modified their holdings of the stock. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its stake in Microsoft by 4.0% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant's stock valued at $85,604,000 after purchasing an additional 8,773 shares during the last quarter. D.B. Root & Company LLC acquired a new stake in Microsoft during the second quarter worth approximately $3,652,000. Dearborn Partners LLC acquired a new stake in Microsoft during the second quarter worth approximately $75,641,000. GTS Securities LLC lifted its position in shares of Microsoft by 44.6% during the 2nd quarter. GTS Securities LLC now owns 271,597 shares of the software giant's stock worth $101,311,000 after buying an additional 83,734 shares during the last quarter. Finally, Henson Edgewater Management LLC purchased a new stake in shares of Microsoft during the 2nd quarter worth approximately $9,430,000. Institutional investors own 71.13% of the company's stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reported earnings of $4.89 per share versus the $4.71–$4.72 consensus and revenue of $92.28 billion, up 19% year over year and above estimates of approximately $90.6 billion. Net income increased 32%, while the company extended its streak of record quarterly revenue. Microsoft Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Azure growth accelerated to 48%, generating approximately $33.2 billion in quarterly revenue. Stronger-than-expected cloud demand suggests Microsoft’s investments in artificial intelligence and Copilot-related services are beginning to translate into significant sales and profit growth. Microsoft Azure Revenue Surges
• Neutral Sentiment: Microsoft disclosed that commercial arrangements with OpenAI produced roughly $10 billion of revenue during the quarter, highlighting the value of the partnership but also the company’s substantial financial dependence on a single AI ecosystem. Microsoft Recorded $10 Billion in Revenue From OpenAI
• Negative Sentiment: Microsoft lowered its 2026 capital-expenditure forecast to $170 billion from $175 billion, citing delays in third-party capacity. The reduction may ease cash-flow pressure, but it also raises concerns that infrastructure constraints could limit Azure growth and delay returns on AI investment. Microsoft Cuts Capex Forecast on AI Capacity Delays
• Negative Sentiment: The company is offering voluntary buyouts to roughly 60,000 employees while spending heavily on data centers. Although the effort could improve long-term efficiency, investors may view it as evidence that Microsoft is managing mounting AI-related costs. Rising interest rates also pose a valuation risk for the high-growth technology sector.

About Microsoft

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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