Microsoft (NASDAQ:MSFT) Receives “Outperform” Rating from Wedbush

Wedbush reiterated their outperform rating on shares of Microsoft (NASDAQ:MSFT) in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a $625.00 price target on the software giant’s stock.

Other equities research analysts have also issued research reports about the company. Royal Bank Of Canada restated a “buy” rating on shares of Microsoft in a research note on Wednesday, November 19th. DZ Bank reissued a “buy” rating on shares of Microsoft in a research report on Thursday, October 30th. Rothschild & Co Redburn restated a “neutral” rating and set a $500.00 price target (down previously from $560.00) on shares of Microsoft in a research note on Tuesday, November 18th. KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research note on Thursday, October 30th. Finally, JPMorgan Chase & Co. reissued a “buy” rating on shares of Microsoft in a research report on Wednesday, November 19th. Two research analysts have rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and four have given 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 $631.03.

Microsoft Price Performance

NASDAQ MSFT opened at $485.13 on Monday. The firm’s fifty day simple moving average is $499.20 and its two-hundred day simple moving average is $503.42. The firm has a market capitalization of $3.61 trillion, a P/E ratio of 34.50, a P/E/G ratio of 1.82 and a beta of 1.07. The company has a current ratio of 1.40, a quick ratio of 1.39 and a debt-to-equity ratio of 0.10. Microsoft has a 12-month low of $344.79 and a 12-month high of $555.45.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings data on Wednesday, October 29th. The software giant reported $4.13 earnings per share for the quarter, topping analysts’ consensus estimates of $3.65 by $0.48. Microsoft had a return on equity of 32.45% and a net margin of 35.71%.The firm had revenue of $77.67 billion during the quarter, compared to analysts’ expectations of $75.49 billion. During the same quarter last year, the firm earned $3.30 EPS. The business’s quarterly revenue was up 18.4% on a year-over-year basis. Analysts forecast that Microsoft will post 13.08 EPS for the current fiscal year.

Microsoft Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be paid a dividend of $0.91 per share. The ex-dividend date is Thursday, February 19th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft’s dividend payout ratio (DPR) is presently 25.89%.

Insider Activity

In other news, EVP Takeshi Numoto sold 2,850 shares of the company’s stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $478.72, for a total value of $1,364,352.00. Following the sale, the executive vice president owned 55,782 shares in the company, valued at $26,703,959.04. This represents a 4.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of Microsoft stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total value of $6,266,880.00. Following the transaction, the chief executive officer owned 129,349 shares of the company’s stock, valued at approximately $63,577,620.48. This represents a 8.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 54,100 shares of company stock valued at $27,598,872 in the last quarter. 0.03% of the stock is currently owned by company insiders.

Institutional Trading of Microsoft

A number of hedge funds have recently added to or reduced their stakes in MSFT. Wellington Capital Management Inc. bought a new position in shares of Microsoft in the second quarter worth $9,941,000. Sound View Wealth Advisors Group LLC grew its position in Microsoft by 2.6% during the second quarter. Sound View Wealth Advisors Group LLC now owns 94,120 shares of the software giant’s stock worth $46,816,000 after buying an additional 2,373 shares in the last quarter. Real Talk Capital LLC increased its stake in Microsoft by 1.6% in the 1st quarter. Real Talk Capital LLC now owns 2,290 shares of the software giant’s stock worth $860,000 after acquiring an additional 37 shares during the last quarter. Bank Pictet & Cie Europe AG raised its holdings in shares of Microsoft by 3.8% in the 2nd quarter. Bank Pictet & Cie Europe AG now owns 922,524 shares of the software giant’s stock valued at $457,119,000 after acquiring an additional 33,382 shares in the last quarter. Finally, Gradient Investments LLC boosted its position in shares of Microsoft by 4.3% during the 3rd quarter. Gradient Investments LLC now owns 285,163 shares of the software giant’s stock valued at $147,700,000 after acquiring an additional 11,770 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Wall Street bullishness on AI upside — Wedbush/Dan Ives reiterating Outperform and a $625 price target implies material upside for MSFT if AI monetization accelerates into 2026. Microsoft Stock Has 29% Upside in 2026, Says Dan Ives
• Positive Sentiment: Analysts forecasting a large incremental AI revenue stream — one top analyst scenario models roughly $25B of AI-driven revenue in fiscal 2026, supporting claims that MSFT may be undervalued on current multiples. Microsoft (MSFT) Stock: Top Analyst Forecasts $25B AI Revenue Boost
• Positive Sentiment: Product and partnership momentum — new partnerships, a cybercrime platform rollout and multi-year deals (e.g., with Cognizant) expand commercial channels for Copilot/Azure services. These deals support revenue visibility even as investment ramps. Microsoft Expands AI Footprint
• Positive Sentiment: Large AI-capex commitments — Microsoft is funneling sizable capital into AI (including major investments in India and Canada), which supports long-term cloud/AI leadership despite short-term spending. Heavy AI Investment Positions Microsoft
• Neutral Sentiment: Investor attention and favorable long-term narratives (dividend-growth narrative, Zacks/Fool coverage) keep MSFT in buy-lists even as short-term volatility persists. Why Microsoft Is a Top Growth Stock
• Negative Sentiment: Gaming struggles — coverage noting Xbox is “losing the console race by miles” highlights declining hardware sales, layoffs and studio cuts that pressure Xbox profitability and near-term investor sentiment. Losing the Console Race by Miles
• Negative Sentiment: Execution and governance concerns — reports that Satya Nadella is pressing teams on Copilot progress (and commentary about micromanagement) suggest internal stress over execution timelines. Microsoft CEO Pushes Staff on Copilot Ambitions
• Negative Sentiment: Concerns about OpenAI exposure and required spending — some analysts/columns argue OpenAI ties could be a liability and commentators warn Microsoft “requires mass spending” to keep Azure competitive, both of which can pressure margins and near-term sentiment. OpenAI Is Looking More Like A Liability Jim Cramer Says Microsoft “Requires Mass Spending”

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).