Microsoft Corporation (NASDAQ:MSFT) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of Microsoft Corporation (NASDAQ:MSFT) have been given an average rating of “Moderate Buy” by the forty-three research firms that are presently covering the company, Marketbeat.com reports. Four investment analysts have rated the stock with a hold rating, thirty-seven have issued a buy rating and two have issued a strong buy rating on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $631.0263.

Several research firms have recently issued reports on MSFT. Wells Fargo & Company increased their price target on Microsoft from $675.00 to $700.00 and gave the stock an “overweight” rating in a research note on Thursday, October 30th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Microsoft in a report on Wednesday, October 8th. HSBC increased their target price on shares of Microsoft from $643.00 to $648.00 in a research report on Monday, October 27th. Piper Sandler restated an “overweight” rating and set a $650.00 price target on shares of Microsoft in a research report on Thursday, October 30th. Finally, Guggenheim set a $675.00 price target on shares of Microsoft in a research note on Wednesday, November 19th.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Billionaire buying: Two wealthy investors have recently increased Microsoft positions, a signal some see as smart-money support ahead of 2026 — this can attract other investors. 2 Billionaires Just Loaded Up on Microsoft Stock. Do They Know Something We Don’t for 2026?
• Positive Sentiment: Dynamics 365 / Copilot momentum: Dynamics 365 business-app revenues rose rapidly (AI Copilot adoption cited), making enterprise software a clear near-term revenue catalyst for Azure and services. Can Microsoft Stock Rally on Dynamics 365 Business Applications?
• Positive Sentiment: Wall Street / analyst bull case on AI: Multiple analysts (Wedbush, Morningstar) and commentators list MSFT among top AI winners heading into 2026 — supporting a thematic, structural bull case for Azure, AI services and enterprise adoption. The 5 AI stocks Dan Ives thinks will define 2026
• Positive Sentiment: Product traction: Microsoft’s “Gaming Copilot” earned praise as genuinely useful — product wins help monetize AI across consumer and gaming segments even as the stock moved independently. “Gaming Copilot” Proves “Genuinely Useful.” Microsoft Stock (NASDAQ:MSFT) Slips Anyway
• Neutral Sentiment: Ecosystem/partnership news: Large infrastructure deals (e.g., reported $9.7B partnership mentions with AI infrastructure providers) highlight growing cloud demand and energy/infrastructure implications for Azure capacity. Iris Energy Limited Stock (IREN) Opinions on AI Strategy and Microsoft Partnership
• Negative Sentiment: Capex scrutiny: Analysts and commentators are questioning whether the Mag-7 hyperscalers (including MSFT) are over-investing in AI infrastructure — heavy spending raises execution and margin-transformation risk if returns take longer than expected. Buy Stock in the Mag 7 Hyperscalers or Are They Spending Too Much?
• Negative Sentiment: “Curse” narrative / OpenAI tie risk: Coverage suggests Microsoft’s close OpenAI relationship is a double-edged sword — while it fuels growth, investors worry about concentration, valuation multiples and governance/PR issues that could cap the stock’s upside. Microsoft’s business is on fire. So how can its stock break from its curse?
• Negative Sentiment: Reputational/regulatory noise: Miscellaneous headlines (policy/critic comments, platform-label requirements) add short-term sentiment volatility but are unlikely to change fundamentals. META, PINS, SNAP: New York Orders Social Media Giants to Add Mental Health Warning Labels to Services

Insider Buying and Selling at Microsoft

In other news, CEO Judson Althoff sold 12,750 shares of the company’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $491.52, for a total value of $6,266,880.00. Following the completion of the sale, the chief executive officer owned 129,349 shares in the company, valued at $63,577,620.48. This represents a 8.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Takeshi Numoto sold 2,850 shares of the firm’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $478.72, for a total value of $1,364,352.00. Following the transaction, the executive vice president directly owned 55,782 shares of the company’s stock, valued at $26,703,959.04. This represents a 4.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 54,100 shares of company stock valued at $27,598,872. 0.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Microsoft

Several hedge funds and other institutional investors have recently bought and sold shares of MSFT. Longfellow Investment Management Co. LLC boosted its stake 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 worth $29,000 after acquiring an additional 20 shares in the last quarter. Bulwark Capital Corp purchased a new stake in shares of Microsoft during the second quarter valued at $32,000. Westend Capital Management LLC lifted its holdings in shares of Microsoft by 386.7% during the second quarter. Westend Capital Management LLC now owns 73 shares of the software giant’s stock valued at $36,000 after purchasing an additional 58 shares during the last quarter. Bayforest Capital Ltd acquired a new position in shares of Microsoft in the 3rd quarter valued at $38,000. Finally, LSV Asset Management purchased a new position in Microsoft in the 4th quarter worth about $44,000. 71.13% of the stock is currently owned by institutional investors.

Microsoft Stock Performance

MSFT opened at $487.10 on Tuesday. The business’s 50 day moving average is $496.56 and its 200-day moving average is $503.92. The stock has a market cap of $3.62 trillion, a PE ratio of 34.64, a price-to-earnings-growth ratio of 1.83 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 twelve month low of $344.79 and a twelve month high of $555.45.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, October 29th. The software giant reported $4.13 earnings per share (EPS) 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 business had revenue of $77.67 billion during the quarter, compared to analyst estimates of $75.49 billion. During the same period in the prior year, the company posted $3.30 EPS. The business’s revenue for the quarter was up 18.4% compared to the same quarter last year. On average, analysts predict that Microsoft will post 13.08 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft’s payout ratio is presently 25.89%.

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).