Microsoft (NASDAQ:MSFT) Given New $550.00 Price Target at Deutsche Bank Aktiengesellschaft

Key Points

• Deutsche Bank cut its Microsoft price target from $575 to $550 while keeping a "buy" rating, implying roughly 36% upside$555 and the stock carries a "Moderate Buy" analyst consensus.
• Microsoft beat Q3 expectations with EPS $4.27 vs. $4.04 and revenue $82.89B (up 18.3% YoY) driven by AI/Copilot and cloud momentum, but shares fell to $403.36 as investors fretted over a ~49% jump in capex and guidance near $190B that pressures near‑term cash flow.

Microsoft (NASDAQ:MSFT - Get Free Report) had its price target reduced by analysts at Deutsche Bank Aktiengesellschaft from $575.00 to $550.00 in a report released on Thursday, MarketBeat Ratings reports. The brokerage currently has a "buy" rating on the software giant's stock. Deutsche Bank Aktiengesellschaft's price objective suggests a potential upside of 36.35% from the stock's previous close.

A number of other brokerages have also issued reports on MSFT. BMO Capital Markets decreased their target price on Microsoft from $575.00 to $505.00 and set an "outperform" rating on the stock in a research report on Tuesday. William Blair reissued an "outperform" rating on shares of Microsoft in a research note on Monday, March 9th. HSBC upped their target price on Microsoft from $588.00 to $593.00 and gave the company a "buy" rating in a report on Tuesday. Weiss Ratings cut Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, March 24th. Finally, TD Cowen reduced their price target on Microsoft from $610.00 to $540.00 and set a "buy" rating on the stock in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $555.08.

Microsoft Price Performance

Shares of MSFT stock traded down $21.10 on Thursday, reaching $403.36. The company's stock had a trading volume of 29,301,417 shares, compared to its average volume of 35,381,875. The stock's fifty day simple moving average is $395.09 and its 200-day simple moving average is $448.65. Microsoft has a 1 year low of $356.28 and a 1 year high of $555.45. The company has a current ratio of 1.39, a quick ratio of 1.38 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $3.00 trillion, a price-to-earnings ratio of 25.20, a price-to-earnings-growth ratio of 1.60 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating analysts' consensus estimates of $4.04 by $0.23. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The firm had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.30 billion. During the same period last year, the firm posted $3.46 earnings per share. Microsoft's revenue for the quarter was up 18.3% compared to the same quarter last year. Analysts forecast that Microsoft will post 16.54 earnings per share for the current fiscal year.

Insider Transactions at Microsoft

In other Microsoft news, Director John W. Stanton purchased 5,000 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was purchased at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the completion of the purchase, the director directly owned 83,905 shares in the company, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the firm's stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the transaction, the executive vice president owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.03% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC boosted its holdings in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors acquired a new stake in shares of Microsoft in the fourth quarter valued at approximately $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft in the fourth quarter valued at approximately $36,000. Bayforest Capital Ltd bought a new position in Microsoft in the third quarter valued at approximately $38,000. Finally, Fairway Wealth LLC increased its stake in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after acquiring an additional 66 shares during the last quarter. Institutional investors own 71.13% of the company's stock.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 beat and cloud momentum — Microsoft reported an EPS beat and ~40% Azure growth; AI revenue and Copilot adoption were highlighted as drivers of durable top‑line acceleration. Read More.
• Positive Sentiment: Copilot and AI monetization — Management said paid Copilot users and AI annual run‑rate (~$37B) are growing, supporting long‑term revenue levers beyond basic cloud. Read More.
• Neutral Sentiment: Analyst reactions mixed but largely bullish — Several firms reiterated Buy/Outperform and raised targets after the print, leaving longer‑term analyst conviction intact. Read More.
• Neutral Sentiment: Management stance on execution — CFO said supply‑chain limits can be managed even as capex outlook rises, signaling the company expects to deliver capacity without derailing operations. Read More.
• Negative Sentiment: Record capex and cash‑flow pressure — Investors reacted to a roughly 49% jump in capex and guidance near ~$190B for 2026; purchases of servers/data‑center gear pulled down free cash flow and spooked short‑term holders. Read More.
• Negative Sentiment: OpenAI relationship reset increases competitive risk — OpenAI models are now available on rival clouds (Amazon Bedrock preview), reducing Microsoft’s prior cloud exclusivity upside. Read More.
• Negative Sentiment: One‑time charges and workforce moves — Microsoft flagged a ~$900M voluntary‑retirement charge and said headcount will decline, adding near‑term noise to results. Read More.
• Negative Sentiment: Large shareholder moves and regulatory risk — Some funds trimmed positions and EU regulators signaled closer scrutiny of cloud/AI services, which can amplify volatility. Read More.

About Microsoft

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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