Microsoft (NASDAQ:MSFT) Trading 3.1% Higher - Here's What Happened

Key Points

• Microsoft shares rose 3.1% on Friday, with trading volume running well above average as the stock reached an intraday high of $428.17 before closing at $421.92.
• Sentiment has been supported by news that Bill Ackman disclosed a new Microsoft stake and by commentary emphasizing the company’s AI and cloud growth drivers, including Azure, Copilot, and the OpenAI partnership.
• Microsoft also continues to show strong fundamentals, having beat fiscal Q4 earnings and revenue estimates and announced a quarterly dividend of $0.91 per share, while analysts maintain an overall Moderate Buy rating.

Shares of Microsoft Corporation (NASDAQ:MSFT - Get Free Report) shot up 3.1% during trading on Friday . The stock traded as high as $428.17 and last traded at $421.92. 48,965,632 shares were traded during mid-day trading, an increase of 38% from the average session volume of 35,588,254 shares. The stock had previously closed at $409.43.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bill Ackman disclosed a new stake in Microsoft and said the stock looks attractively valued, which is boosting sentiment around MSFT. Bill Ackman says he built Microsoft position in first quarter
• Positive Sentiment: Several articles highlighted Microsoft’s AI and cloud strengths, including expectations that Azure, Copilot, and enterprise software remain key long-term growth drivers. Microsoft Buy Rating Reiterated as AI and Cloud Momentum Builds
• Positive Sentiment: Wedbush and other commentators pointed to the OpenAI deal changes as improving Microsoft’s cash flow visibility and supporting the AI investment case. Microsoft (MSFT) Stock Surges to $575 Target as Wedbush Applauds OpenAI Partnership Overhaul
• Neutral Sentiment: Microsoft also faced headlines about a new UK antitrust probe into its business software, which adds regulatory overhang but does not yet change the core investment story. UK opens antitrust probe into Microsoft's business software
• Negative Sentiment: LinkedIn, which is owned by Microsoft, announced layoffs, reinforcing that Microsoft is still making efficiency cuts even as it spends heavily on AI infrastructure. Exclusive: Microsoft eyeing startup deals for life after OpenAI

Wall Street Analyst Weigh In

Several research firms recently commented on MSFT. Weiss Ratings downgraded shares of Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, March 24th. Dbs Bank reduced their price target on shares of Microsoft from $678.00 to $573.00 in a research note on Thursday, May 7th. Robert W. Baird reduced their price target on shares of Microsoft from $540.00 to $500.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 15th. Truist Financial dropped their target price on shares of Microsoft from $675.00 to $575.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Finally, Wall Street Zen downgraded shares of Microsoft from a "buy" rating to a "hold" rating in a research note on Sunday, January 18th. Thirty-nine investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $560.88.

Microsoft Stock Up 3.1%

The firm has a market capitalization of $3.13 trillion, a P/E ratio of 25.11, a PEG ratio of 1.46 and a beta of 1.10. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. The business's fifty day moving average price is $397.84 and its two-hundred day moving average price is $441.52.

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, beating analysts' consensus estimates of $4.06 by $0.21. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The business had revenue of $82.89 billion for the quarter, compared to analysts' expectations of $81.44 billion. During the same period last year, the business earned $3.46 EPS. The company's revenue was up 18.3% compared to the same quarter last year. Equities analysts expect that Microsoft Corporation will post 16.76 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, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. Microsoft's dividend payout ratio (DPR) is currently 21.67%.

Insider Buying and Selling

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

Institutional Investors Weigh In On Microsoft

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

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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