Microsoft Corporation (NASDAQ:MSFT) Given Average Recommendation of “Moderate Buy” by Analysts

Microsoft Corporation (NASDAQ:MSFT) has received a consensus rating of “Moderate Buy” from the forty-five brokerages that are presently covering the firm, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold rating, thirty-nine have assigned a buy rating and two have assigned a strong buy rating to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $591.9487.

A number of research analysts have weighed in on the company. The Goldman Sachs Group reiterated a “buy” rating on shares of Microsoft in a report on Thursday, February 12th. Wolfe Research reduced their price target on Microsoft from $625.00 to $530.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $590.00 price objective on shares of Microsoft in a report on Thursday, January 29th. KeyCorp dropped their target price on shares of Microsoft from $630.00 to $600.00 and set an “overweight” rating on the stock in a report on Thursday, January 29th. Finally, Wells Fargo & Company reduced their target price on shares of Microsoft from $630.00 to $615.00 and set an “overweight” rating on the stock in a research report on Thursday, January 29th.

Microsoft Stock Down 1.1%

Shares of NASDAQ MSFT opened at $396.86 on Wednesday. The firm has a fifty day simple moving average of $457.04 and a two-hundred day simple moving average of $490.56. Microsoft has a 12 month low of $344.79 and a 12 month high of $555.45. The company has a current ratio of 1.39, a quick ratio of 1.38 and a debt-to-equity ratio of 0.09. The firm has a market capitalization of $2.95 trillion, a PE ratio of 24.82, a price-to-earnings-growth ratio of 1.57 and a beta of 1.08.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The company had revenue of $81.27 billion for the quarter, compared to analysts’ expectations of $80.28 billion. During the same quarter in the previous year, the company earned $3.23 earnings per share. Microsoft’s quarterly revenue was up 16.7% on a year-over-year basis. Equities analysts expect that Microsoft will post 13.08 earnings per share for the current year.

Microsoft Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be issued a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Thursday, February 19th. Microsoft’s dividend payout ratio is 22.76%.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: SeekingAlpha notes a potential Azure reacceleration that could surprise Wall Street — if Azure growth reaccelerates, revenue and margin outlooks would improve and relieve some valuation pressure. Microsoft’s Azure Reacceleration Could Shock Wall Street
• Positive Sentiment: Coverage arguing Microsoft’s cloud + AI model provides stability — its subscription and enterprise backlog can sustain cash flow while MSFT invests in AI products like Copilot. Microsoft: Cloud And AI-Driven Stability
• Positive Sentiment: Market activity in AI infrastructure suggests durable demand: BlackRock’s big position in Nebius (an AI infra vendor used by MSFT) signals institutional conviction in AI data‑center buildouts that benefit Microsoft’s cloud services. Whale Watching: BlackRock’s Massive Bet on Nebius Group (MSFT)
• Positive Sentiment: Large external capital plans (e.g., Adani’s $100B AI data‑center push with Google & Microsoft ties) point to multi‑year cloud/demand tailwinds for hyperscalers. India’s Adani Group To Invest $100 Billion In AI Data Centers Amid Strategic Partnership With Google, Microsoft
• Neutral Sentiment: Macro bullish view: an AI productivity “miracle” case could lift long‑cycle earnings for cloud/AI leaders, but timing and calibration are uncertain. Scott Bessent’s Case for a 2026 AI Productivity Miracle
• Neutral Sentiment: Analysis noting MSFT’s pullback sets up a potential bull run if AI investments convert into durable revenue — but also highlights recent deceleration drivers that pressured the stock. Why Microsoft Stock Is Bracing For A Bull Run
• Negative Sentiment: Surveys and experts warn Big Tech may be overinvesting in AI infrastructure — that narrative is driving sector multiple compression and investor caution. Investing Experts Sound Alarm on Big Tech’s Massive AI Spending
• Negative Sentiment: Analyst headlines and downgrades (e.g., TipRanks coverage calling a “lose‑lose” scenario and Melius Research moving MSFT to Hold) are pressuring sentiment and can trigger short‑term selling. ‘A Lose-Lose Situation,’ Says Analyst as Microsoft Stock (MSFT) Faces Downgrade Melius Research Downgrades Microsoft Corporation (MSFT) Stock to Hold
• Negative Sentiment: Product/security risk: coverage of “AI recommendation poisoning” highlights emerging AI safety/reputational threats that could dent enterprise adoption or add compliance costs. “AI Recommendation Poisoning”: Microsoft Stock (NASDAQ:MSFT) Sinks on New Threat

Insider Activity at Microsoft

In related news, EVP Takeshi Numoto sold 2,850 shares of the firm’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $478.72, for a total transaction of $1,364,352.00. Following the completion of the transaction, the executive vice president owned 55,782 shares of the company’s stock, valued at $26,703,959.04. This trade represents a 4.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Judson Althoff sold 12,750 shares of Microsoft stock in a transaction 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 $63,577,620.48. The trade was a 8.97% decrease in their position. The SEC filing for this sale provides additional information. 0.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microsoft

Institutional investors and hedge funds have recently modified their holdings of the stock. Longfellow Investment Management Co. LLC increased its holdings in Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after buying an additional 20 shares in the last quarter. Bernzott Capital Advisors purchased a new stake in shares of Microsoft during the 4th quarter valued at about $34,000. Bayforest Capital Ltd bought a new stake in shares of Microsoft in the third quarter worth approximately $38,000. Timmons Wealth Management LLC purchased a new position in shares of Microsoft during the fourth quarter valued at approximately $36,000. Finally, Fairway Wealth LLC lifted its position in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after purchasing an additional 66 shares during the period. 71.13% of the stock is currently owned by 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).