Microsoft (NASDAQ:MSFT) Given New $573.00 Price Target at Dbs Bank

Key Points

• DBS Bank cut its price target for Microsoft to $573 (from $678), which still implies roughly a 38% upside from the stock's current level.
• Microsoft reported a beat on the quarter (EPS $4.27 vs. $4.06 estimate; revenue $82.89B vs. $81.44B) with Azure/cloud strength underpinning growth, and analysts maintain a generally bullish consensus price target of about $562.69.
• Investor sentiment is supported by institutional buying and some insider purchases, but risks include higher AI-related capex and potential supply/cost uncertainty tied to the Broadcom/OpenAI chip situation that could pressure margins.

Microsoft (NASDAQ:MSFT - Get Free Report) had its price target lowered by Dbs Bank from $678.00 to $573.00 in a note issued to investors on Thursday,MarketScreener reports. Dbs Bank's target price suggests a potential upside of 37.89% from the stock's current price.

A number of other brokerages have also recently weighed in on MSFT. Weiss Ratings cut shares of Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, March 24th. Wedbush reaffirmed an "outperform" rating and issued a $575.00 target price on shares of Microsoft in a report on Thursday, April 30th. Phillip Securities upgraded Microsoft from a "moderate buy" rating to a "strong-buy" rating in a research report on Sunday, February 1st. DA Davidson lowered their target price on Microsoft from $650.00 to $550.00 and set a "buy" rating on the stock in a research note on Thursday, April 30th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Microsoft in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $562.69.

Microsoft Stock Down 1.2%

Shares of NASDAQ:MSFT opened at $415.54 on Thursday. The firm has a market capitalization of $3.09 trillion, a PE ratio of 24.96, a price-to-earnings-growth ratio of 1.49 and a beta of 1.10. Microsoft has a 1 year low of $356.28 and a 1 year high of $555.45. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The firm's 50-day moving average is $396.79 and its two-hundred day moving average is $445.39.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. The firm had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The firm's revenue for the quarter was up 18.3% on a year-over-year basis. During the same period in the prior year, the firm earned $3.46 EPS. Analysts predict that Microsoft will post 16.76 EPS for the current year.

Insiders Place Their Bets

In other news, Director John W. Stanton bought 5,000 shares of the business's stock in a transaction that occurred on Wednesday, February 18th. The shares were acquired at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the transaction, the director owned 83,905 shares of the company's stock, valued at $33,339,651.75. This represents a 6.34% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the transaction, the executive vice president directly owned 137,933 shares in the company, valued at $56,486,322.16. This represents a 8.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Microsoft

Institutional investors and hedge funds have recently modified their holdings of the stock. BLVD Private Wealth LLC raised its holdings in shares of Microsoft by 0.6% during the third quarter. BLVD Private Wealth LLC now owns 3,169 shares of the software giant's stock worth $1,641,000 after purchasing an additional 19 shares during the period. Magnolia Capital Management Ltd. lifted its holdings in shares of Microsoft by 0.3% in the third quarter. Magnolia Capital Management Ltd. now owns 6,509 shares of the software giant's stock valued at $3,371,000 after buying an additional 20 shares during the period. ARK & TLK Investments LLC boosted its stake in Microsoft by 1.0% during the third quarter. ARK & TLK Investments LLC now owns 1,935 shares of the software giant's stock valued at $1,002,000 after buying an additional 20 shares in the last quarter. Rochester Wealth Strategies LLC grew its holdings in Microsoft by 2.9% during the third quarter. Rochester Wealth Strategies LLC now owns 700 shares of the software giant's stock worth $363,000 after acquiring an additional 20 shares during the period. Finally, Longfellow Investment Management Co. LLC raised its position in Microsoft by 51.3% in the second 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. Hedge funds and other institutional investors own 71.13% of the company's stock.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s cloud and AI strength continues to show up in commentary and post‑quarter analysis — analysts highlight Azure as the growth driver after the company’s recent quarter beat revenue and EPS expectations. This underpins confidence in MSFT’s top-line resilience. Azure Doing The Heavylifting
• Positive Sentiment: Street bullishness is rising: a top analyst and some firms have raised price targets and EPS outlooks (including a recent street‑high target and an Erste upgrade to FY2027 EPS), giving investors a bullish narrative vs. recent volatility. New Street-High Price Target
• Positive Sentiment: Institutional buyers have been adding to positions (notable reported buys by Fisher Asset Management and Cryder Capital), which supports the rally and signals confidence from large investors. Fisher Asset Boost Cryder Capital Buy
• Neutral Sentiment: Xbox pulled back on its Copilot product and Microsoft outlined a voluntary retirement/buyout program — operational moves that trim some discretionary costs but are not material to MSFT’s core cloud profit engine. Xbox Copilot Cancel Employee Buyouts
• Neutral Sentiment: Product/partner execution updates (Dynamics 365 integrations, new partner Frontier designations) support the long‑term AI/cloud narrative but are incremental near‑term catalysts. Dynamics 365 API Integration
• Negative Sentiment: Broadcom’s reported $18B OpenAI chip deal hit financing gaps, and reports flag Microsoft’s ~40% purchase commitment as the key unresolved piece — any pullback or renegotiation could introduce timing or cost uncertainty for MSFT’s AI supply assumptions. Broadcom / OpenAI Deal Issue
• Negative Sentiment: Margins and capital spending are watchers’ items — reporting and analysts note a temporary margin headwind from higher AI capex, and Microsoft is reportedly weighing scaling back hourly clean‑energy goals as data‑center builds accelerate, creating ESG and cost tradeoff concerns. Margins Headwind AI Data Centers vs Clean Energy

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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