Microsoft Corporation (NASDAQ:MSFT) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Microsoft has a consensus analyst rating of “Moderate Buy” from 48 firms, with 41 buy ratings and 7 holds. The average 1-year price target is about $557.96.
• The company recently delivered strong quarterly results, posting $4.27 EPS versus estimates of $4.06 and revenue of $82.89 billion, both above expectations. Revenue rose 18.3% year over year.
• Microsoft also announced a quarterly dividend of $0.91 per share, payable September 10, representing an annualized yield of about 0.9%. Institutional investors remain heavily involved, owning 71.13% of the stock.

Shares of Microsoft Corporation (NASDAQ:MSFT - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the forty-eight ratings firms that are covering the firm, Marketbeat Ratings reports. Seven equities research analysts have rated the stock with a hold rating and forty-one have given a buy rating to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $557.9556.

A number of research analysts have recently commented on MSFT shares. Wolfe Research reduced their target price on shares of Microsoft from $570.00 to $525.00 and set an "outperform" rating on the stock in a research report on Monday, July 6th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $502.00 price target on shares of Microsoft in a report on Thursday, June 4th. DZ Bank reaffirmed a "buy" rating on shares of Microsoft in a research note on Thursday, April 30th. Barclays reiterated an "overweight" rating on shares of Microsoft in a report on Wednesday, June 3rd. Finally, Bank of America began coverage on shares of Microsoft in a research report on Tuesday, March 24th. They issued a "buy" rating and a $500.00 price objective for the company.

Microsoft Stock Performance

Shares of NASDAQ:MSFT opened at $393.82 on Friday. The business's 50-day simple moving average is $400.28 and its 200 day simple moving average is $411.30. The company has a market cap of $2.93 trillion, a P/E ratio of 23.44, a PEG ratio of 1.22 and a beta of 1.13. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. Microsoft has a one year low of $349.20 and a one year high of $555.45.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping analysts' consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm had revenue of $82.89 billion during the quarter, compared to analysts' expectations of $81.44 billion. During the same quarter in the prior year, the business earned $3.46 EPS. Microsoft's quarterly revenue was up 18.3% compared to the same quarter last year. On average, sell-side analysts forecast that Microsoft will post 16.71 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. Microsoft's payout ratio is 21.67%.

Insider Activity at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,500 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the transaction, the executive vice president directly owned 47,468 shares of the company's stock, valued at $19,122,009.12. This represents a 8.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the transaction, the chief executive officer directly owned 110,477 shares in the company, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 23,762 shares of company stock valued at $10,508,361. Insiders own 0.03% of the company's stock.

Institutional Trading of Microsoft

Hedge funds and other institutional investors have recently made changes to their positions in the stock. WFA Asset Management Corp increased its holdings in shares of Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant's stock valued at $427,000 after acquiring an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. lifted its stake in Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant's stock worth $5,658,000 after purchasing an additional 38 shares during the last quarter. Discipline Wealth Solutions LLC boosted its holdings in Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant's stock worth $1,144,000 after purchasing an additional 2,138 shares during the period. Wealth Group Ltd. boosted its holdings in Microsoft by 1.2% in the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant's stock worth $1,000,000 after purchasing an additional 28 shares during the period. Finally, Eagle Capital Management LLC increased its stake in Microsoft by 0.4% during the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant's stock valued at $9,735,000 after purchasing an additional 96 shares during the last quarter. 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 is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power
• Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey
• Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance
• Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft's Nadella rips Anthropic's Fable restrictions in staff meeting: 'Doesn't make sense'
• Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic
• Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test
• Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action

Microsoft Company Profile

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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