Microsoft Corporation (NASDAQ:MSFT) Stock Has Average Price Target of $592.15 According to Brokerages

Key Points

• Analysts remain broadly bullish on Microsoft: Forty-three of 49 brokerages rate the stock a buy, producing a “Moderate Buy” consensus and an average 12-month price target of $592.15.
• Cloud and AI are key growth drivers and risks: Analysts expect strong Azure growth and potential benefits from Microsoft’s custom AI chips and security business, but heavy data-center spending could pressure margins and valuation.
• Microsoft delivered strong recent results and raised its dividend: Quarterly EPS of $4.74 and revenue of $90.01 billion exceeded estimates, while the quarterly dividend increased to $0.98 per share; insiders have nevertheless sold roughly $75.4 million of stock over the past 90 days.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the forty-nine brokerages that are currently covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and forty-three have issued a buy rating on the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $592.15.

A number of brokerages have issued reports on MSFT. Needham & Company LLC assumed coverage on Microsoft in a report on Wednesday, September 23rd. They set a "buy" rating for the company. JPMorgan Chase & Co. reissued a "buy" rating on shares of Microsoft in a research report on Monday, September 28th. Citizens Jmp reaffirmed a "market outperform" rating and set a $550.00 price target on shares of Microsoft in a research report on Tuesday, September 15th. Morgan Stanley downgraded shares of Microsoft from an "overweight" rating to a "negative" rating in a research note on Monday, October 5th. Finally, Argus lowered their price target on Microsoft from $620.00 to $510.00 and set a "buy" rating on the stock in a report on Friday, July 10th.

Insiders Place Their Bets

In related news, CEO Satya Nadella sold 86,525 shares of the company'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 sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, 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 the company's stock in a transaction 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 completion of the sale, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. Insiders own 0.03% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Bank of America Corp DE purchased a new stake in Microsoft during the 2nd quarter worth about $27,338,370,000. Legal & General Group Plc acquired a new stake in Microsoft during the second quarter worth approximately $18,306,443,000. Jupiter Topco LLC purchased a new stake in Microsoft in the 2nd quarter worth approximately $6,928,664,000. Canada Pension Plan Investment Board acquired a new position in Microsoft in the 2nd quarter valued at $5,653,812,000. Finally, The Manufacturers Life Insurance Company purchased a new position in shares of Microsoft during the 2nd quarter worth $4,000,706,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and earnings expectations remain strong. Bank of America reaffirmed its Buy rating and forecast approximately 44.8% Azure growth. Analysts expect quarterly results to be broadly in line with estimates, with Azure strength potentially offsetting heavy investment in AI infrastructure. Microsoft Stock Forecast: BofA Reaffirms Buy Ahead of Earnings
• Positive Sentiment: Microsoft’s custom silicon and security businesses could support future cloud margins. The Maia AI accelerator and other internally developed chips may reduce reliance on Nvidia, improve cost control and retain more economics from Microsoft’s AI services. Investors are also watching whether security growth helps offset data-center expenses. Microsoft: Security And Silicon Set The Stage For Cloud Margin Recovery
• Positive Sentiment: Medical AI results add another potential growth opportunity. Microsoft’s MAI-DxO reportedly diagnosed complex cases more than twice as often as general physicians in a simulation, strengthening the company’s positioning in healthcare AI, although commercialization and regulatory hurdles remain. Microsoft develops AI tool that can diagnose sequentially like a doctor
• Neutral Sentiment: The upcoming report is a major near-term catalyst. Investors will focus on Azure growth, Copilot adoption, AI monetization, capital expenditures, backlog conversion and management’s outlook. The stock is trading near its yearly high, raising expectations for a strong forecast. Microsoft's Earnings Problem: Even Great May Not Be Enough
• Negative Sentiment: AI spending and market conditions could pressure valuation and margins. Investors have recently sold some technology shares when companies raised infrastructure budgets, while a weaker overall market and higher oil prices have added volatility. Microsoft’s large data-center investment must translate into revenue growth to justify the spending. Microsoft Earnings Report To Focus On AI Momentum, Capex
• Negative Sentiment: Operational and product concerns remain. Microsoft withdrew from a U.K. data-center deal because of power-delivery delays, and Xbox cloud-streaming price changes have generated customer friction. Former CEO Bill Gates has also warned about AI safety risks, potentially increasing regulatory scrutiny. Microsoft pulls out of UK Nscale data centre deal over power delay

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $524.51 on Monday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.90 trillion, a P/E ratio of 29.20, a PEG ratio of 1.68 and a beta of 1.10. The business's fifty day simple moving average is $508.51 and its 200-day simple moving average is $446.69. Microsoft has a 12-month low of $349.20 and a 12-month high of $553.72.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The business had revenue of $90.01 billion during the quarter, compared to analysts' expectations of $87.62 billion. During the same quarter last year, the business posted $3.65 EPS. The business's quarterly revenue was up 17.7% compared to the same quarter last year. As a group, equities analysts predict that Microsoft will post 19.66 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is a positive change from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft's dividend payout ratio (DPR) is presently 20.27%.

Microsoft Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.