Microsoft (NASDAQ:MSFT) Price Target Raised to $625.00

Key Points

• Morgan Stanley has raised its price target for Microsoft from $582.00 to $625.00, indicating a potential upside of 23.27% from its current share price.
• The consensus among analysts reflects a strong optimism for Microsoft, with one analyst rating it a Strong Buy, twenty-nine a Buy, and two a Hold, leading to an average rating of Moderate Buy.
• Microsoft reported $76.44 billion in revenue for the last quarter, significantly surpassing analysts' expectations of $73.79 billion, and earning $3.65 per share against a consensus estimate of $3.35.

Microsoft (NASDAQ:MSFT - Get Free Report) had its target price upped by investment analysts at Morgan Stanley from $582.00 to $625.00 in a report released on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the software giant's stock. Morgan Stanley's target price points to a potential upside of 23.27% from the stock's current price.

MSFT has been the topic of a number of other research reports. Jefferies Financial Group increased their target price on Microsoft from $600.00 to $675.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Wedbush increased their target price on Microsoft from $600.00 to $625.00 and gave the company an "outperform" rating in a report on Thursday, July 31st. Loop Capital raised their price objective on Microsoft from $550.00 to $600.00 and gave the stock a "buy" rating in a research note on Thursday, July 24th. Stifel Nicolaus raised their price objective on Microsoft from $500.00 to $550.00 and gave the stock a "buy" rating in a research note on Monday, July 28th. Finally, Wells Fargo & Company reaffirmed an "overweight" rating and issued a $650.00 price objective (up previously from $600.00) on shares of Microsoft in a research note on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $614.07.

Microsoft Trading Down 0.6%

Microsoft stock opened at $507.03 on Friday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.35 and a quick ratio of 1.35. Microsoft has a one year low of $344.79 and a one year high of $555.45. The stock has a market capitalization of $3.77 trillion, a PE ratio of 37.17, a price-to-earnings-growth ratio of 2.22 and a beta of 1.04. The business's fifty day moving average is $512.01 and its 200 day moving average is $461.15.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, July 30th. The software giant reported $3.65 earnings per share for the quarter, beating analysts' consensus estimates of $3.35 by $0.30. Microsoft had a return on equity of 32.44% and a net margin of 36.15%.The company had revenue of $76.44 billion for the quarter, compared to the consensus estimate of $73.79 billion. During the same quarter in the prior year, the company earned $2.95 earnings per share. Microsoft's revenue was up 18.1% on a year-over-year basis. Microsoft has set its Q1 2026 guidance at EPS. On average, sell-side analysts predict that Microsoft will post 13.08 EPS for the current year.

Insider Activity

In other Microsoft news, EVP Takeshi Numoto sold 4,850 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $527.32, for a total transaction of $2,557,502.00. Following the sale, the executive vice president owned 39,111 shares in the company, valued at approximately $20,624,012.52. The trade was a 11.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Satya Nadella sold 149,205 shares of the business's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $504.78, for a total value of $75,315,699.90. Following the sale, the chief executive officer owned 790,852 shares in the company, valued at approximately $399,206,272.56. The trade was a 15.87% decrease in their position. The disclosure for this sale can be found here. 0.03% of the stock is currently owned by insiders.

Institutional Trading of Microsoft

A number of hedge funds have recently modified their holdings of MSFT. Brady Martz Wealth Solutions LLC raised its holdings in Microsoft by 1.4% in the 1st quarter. Brady Martz Wealth Solutions LLC now owns 6,650 shares of the software giant's stock worth $2,496,000 after purchasing an additional 95 shares during the period. Real Talk Capital LLC increased its holdings in shares of Microsoft by 1.6% in the first quarter. Real Talk Capital LLC now owns 2,290 shares of the software giant's stock valued at $860,000 after purchasing an additional 37 shares during the last quarter. Modern Wealth Management LLC increased its holdings in shares of Microsoft by 39.3% in the first quarter. Modern Wealth Management LLC now owns 144,852 shares of the software giant's stock valued at $54,376,000 after purchasing an additional 40,860 shares during the last quarter. Bridgeway Capital Management LLC increased its stake in Microsoft by 8.3% during the first quarter. Bridgeway Capital Management LLC now owns 86,477 shares of the software giant's stock worth $32,463,000 after acquiring an additional 6,617 shares during the last quarter. Finally, Meridian Wealth Advisors LLC increased its stake in Microsoft by 3.8% during the fourth quarter. Meridian Wealth Advisors LLC now owns 54,910 shares of the software giant's stock worth $23,144,000 after acquiring an additional 2,014 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company's stock.

About Microsoft

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.

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