Microsoft (NASDAQ:MSFT) Shares Down 1.2% - Time to Sell?

Key Points

• Microsoft shares fell 1.2% on Monday, trading as low as $359.90 before closing at $368.57, with volume running well above average.
• Despite the pullback, several analysts say the decline could be a buying opportunity, citing strong momentum in Azure, cloud, and AI growth. Michael Burry also disclosed long-dated Microsoft call options, signaling a bullish long-term view.
• Sentiment has also been pressured by concerns over heavy AI infrastructure spending, regulatory and legal overhangs in Europe, and recent insider selling by executives.

Microsoft Corporation (NASDAQ:MSFT - Get Free Report)'s stock price fell 1.2% on Monday . The stock traded as low as $359.90 and last traded at $368.57. Approximately 50,565,018 shares changed hands during mid-day trading, an increase of 34% from the average daily volume of 37,770,855 shares. The stock had previously closed at $372.97.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Michael Burry disclosed December 2028 LEAP call options on Microsoft with strikes near $700, signaling a bullish long-term bet on the stock. Big Short Legend Michael Burry Just Bet Big on Microsoft
• Positive Sentiment: Several analysts argue the recent pullback is a buying opportunity, pointing to Microsoft’s strong cloud and AI momentum, including Azure growth and a rapidly expanding AI business. Is The Microsoft Stock Pullback A Buying Opportunity?
• Positive Sentiment: Microsoft expanded its AI and cybersecurity offerings through a new partnership with Commvault, which could support enterprise adoption across cloud customers. Microsoft Expands Operations With a New Strategic Partnership
• Neutral Sentiment: Commentary from bullish tech analyst Dan Ives and other strategists says the broader Big Tech selloff may be creating an opportunity, but this is mostly sentiment rather than a Microsoft-specific catalyst. Dan Ives Says the $3 Trillion Tech Wipeout Is a Buying Opportunity
• Neutral Sentiment: Multiple articles frame Microsoft as a high-quality dividend and AI compounder, but these are long-term thesis pieces rather than fresh business updates. Three Dividend Aristocrats to Buy and Hold in 2026
• Negative Sentiment: Microsoft is heading toward its worst month since 2000 after a steep June decline, driven by investor concern that massive AI infrastructure spending is pressuring margins before returns are visible. Microsoft’s US$570 billion rout sets up its worst month since 2000
• Negative Sentiment: Regulatory and legal overhangs are also weighing on sentiment, including an EU gatekeeper designation for Azure, an Italy antitrust probe into Microsoft 365/Copilot, and multiple securities class-action notices. Microsoft Faces EU Gatekeeper Move And Italy Antitrust Probe
• Negative Sentiment: Tipsters also reported Microsoft pulled 119 Edge extensions and that Xbox may be pausing new third-party Game Pass deals, which adds to concerns about product and gaming momentum. Microsoft Stock Slips After Pulling 119 Edge Extensions

Analyst Ratings Changes

Several brokerages recently weighed in on MSFT. President Capital lifted their price target on Microsoft from $500.00 to $520.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Weiss Ratings lowered shares of Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, March 24th. Phillip Securities raised shares of Microsoft to a "buy" rating and set a $485.00 price target on the stock in a research note on Wednesday, May 13th. Truist Financial cut their price objective on Microsoft from $675.00 to $575.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Finally, Stifel Nicolaus reduced their price objective on Microsoft from $415.00 to $400.00 and set a "hold" rating for the company in a research note on Thursday. Forty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $560.86.

Microsoft Trading Down 1.2%

The company has a fifty day simple moving average of $410.37 and a two-hundred day simple moving average of $420.98. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The company has a market cap of $2.74 trillion, a PE ratio of 21.94, a P/E/G ratio of 1.34 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, beating analysts' consensus estimates of $4.06 by $0.21. The company 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 company's quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.46 EPS. Analysts anticipate that Microsoft Corporation will post 16.76 EPS for the current year.

Microsoft Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 1.0%. Microsoft's dividend payout ratio (DPR) is presently 21.67%.

Insider Activity

In related news, CEO Judson Althoff sold 15,500 shares of the company's stock in a transaction 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 sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Takeshi Numoto sold 4,500 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the sale, the executive vice president owned 47,468 shares of the company's stock, valued at $19,122,009.12. This trade represents a 8.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 23,762 shares of company stock valued at $10,508,361. Insiders own 0.03% of the company's stock.

Hedge Funds Weigh In On Microsoft

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in Microsoft by 2.3% in the fourth quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant's stock valued at $347,211,391,000 after acquiring an additional 15,955,898 shares during the period. State Street Corp increased its position in shares of Microsoft by 2.1% in the fourth quarter. State Street Corp now owns 306,150,608 shares of the software giant's stock valued at $148,060,557,000 after buying an additional 6,388,930 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Microsoft by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant's stock worth $88,056,019,000 after buying an additional 1,911,142 shares during the last quarter. Morgan Stanley boosted its position in shares of Microsoft by 0.8% in the 4th quarter. Morgan Stanley now owns 121,220,561 shares of the software giant's stock worth $58,624,690,000 after buying an additional 980,439 shares in the last quarter. Finally, Norges Bank acquired a new stake in Microsoft in the 4th quarter valued at about $50,664,631,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

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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