Microsoft (NASDAQ:MSFT) Stock Price Expected to Rise, Sanford C. Bernstein Analyst Says

Key Points

• Sanford C. Bernstein raised Microsoft’s price target from $660 to $662 and maintained an “outperform” rating, implying approximately 25% upside from the current share price.
• Analyst sentiment remains broadly positive: 42 analysts rate Microsoft a Buy, with a consensus “Moderate Buy” rating and an average price target of $589.76, despite some recent downgrades.
• Microsoft recently exceeded quarterly earnings and revenue estimates, while investors continue to weigh its strong AI and cloud growth prospects against concerns over heavy infrastructure spending and profitability.

Microsoft (NASDAQ:MSFT - Get Free Report) had its price target hoisted by equities researchers at Sanford C. Bernstein from $660.00 to $662.00 in a research report issued on Monday, Benzinga reports. The firm presently has an "outperform" rating on the software giant's stock. Sanford C. Bernstein's price objective indicates a potential upside of 25.13% from the stock's current price.

MSFT has been the subject of several other research reports. Oppenheimer upped their price target on shares of Microsoft from $515.00 to $570.00 and gave the company an "outperform" rating in a research report on Tuesday, September 22nd. Stifel Nicolaus upgraded shares of Microsoft from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $530.00 to $575.00 in a research report on Tuesday, September 22nd. Raymond James Financial cut shares of Microsoft from a "moderate buy" rating to a "strong sell" rating in a research report on Wednesday, September 23rd. BMO Capital Markets initiated coverage on shares of Microsoft in a research note on Monday, October 5th. They set an "outperform" rating on the stock. Finally, BNP Paribas Exane lowered Microsoft from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Forty-two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $589.76.

Microsoft Stock Performance

Shares of MSFT opened at $529.05 on Monday. The business's 50-day moving average price is $505.53 and its 200 day moving average price is $441.16. The stock has a market capitalization of $3.93 trillion, a P/E ratio of 29.46, a P/E/G ratio of 1.70 and a beta of 1.10. Microsoft has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

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 (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The business's revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.65 EPS. Analysts expect that Microsoft will post 19.65 earnings per share for the current year.

Insider Activity at Microsoft

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 that occurred 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 approximately $21,188,276.96. The trade was a 10.13% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Microsoft

Several institutional investors and hedge funds have recently modified their holdings of MSFT. State Street Corp increased its stake in shares of Microsoft by 2.9% in the second quarter. State Street Corp now owns 315,653,206 shares of the software giant's stock valued at $117,744,959,000 after buying an additional 8,944,917 shares during the period. Bank of America Corp DE bought a new position in shares of Microsoft during the second quarter worth about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Microsoft by 0.9% in the second 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 acquiring an additional 543,172 shares during the period. Auto Owners Insurance Co lifted its stake 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. Finally, Legal & General Group Plc acquired a new position in shares of Microsoft in the second quarter worth approximately $18,306,443,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft remains a favored large-cap AI investment ahead of earnings. Analysts and commentators cite Azure’s growth, the enterprise reach of Copilot and Microsoft’s strong balance sheet as reasons the company could benefit from sustained AI adoption. The stock is also viewed by some investors as reasonably valued relative to its growth prospects. Some Investors Are Questioning the AI Trade. Microsoft Is Bucking the Trend
• Positive Sentiment: Investors are looking for another strong quarterly performance on October 28. Microsoft’s most recent reported quarter exceeded consensus estimates for both earnings and revenue, providing a favorable backdrop if Azure and AI monetization show continued momentum. Prediction: Microsoft Stock Is Going to Soar After Oct. 28
• Neutral Sentiment: UBS has reset its Microsoft price target, while broader market coverage continues to identify MSFT as a preferred AI earnings play. However, analysts are increasingly focused on whether massive AI infrastructure spending will generate sufficient returns rather than simply expanding capacity. UBS resets Microsoft stock price target for investors
• Negative Sentiment: Microsoft withdrew as the anchor customer from Nscale’s planned Loughton, Essex, data center, reportedly because of risks tied to delays connecting the project to the U.K. power grid. The facility was expected to support roughly 23,000 Nvidia processors. The decision highlights electricity shortages and infrastructure bottlenecks that could delay AI capacity expansion and complicate Nscale’s planned IPO. Microsoft pulls out of UK data center deal with Nscale
• Negative Sentiment: Microsoft’s approximately $175 billion capital-expenditure plan is intensifying scrutiny of cloud profitability. Investors worry that data-center construction, power constraints and AI infrastructure costs could weigh on margins before the related revenue fully materializes. Here's How Microsoft's $175 Billion in Capital Expenditures Is Hurting Its Business

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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