Rothschild & Co Redburn Cuts Microsoft (NASDAQ:MSFT) Price Target to $400.00

Microsoft (NASDAQ:MSFT) had its price target reduced by Rothschild & Co Redburn from $450.00 to $400.00 in a research note published on Thursday,MarketScreener reports. They currently have a neutral rating on the software giant’s stock.

Several other equities research analysts also recently weighed in on MSFT. Phillip Securities raised shares of Microsoft from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday, February 1st. BNP Paribas Exane reduced their price target on shares of Microsoft from $659.00 to $556.00 and set an “outperform” rating on the stock in a research report on Friday, April 10th. William Blair reiterated an “outperform” rating on shares of Microsoft in a research note on Monday, March 9th. Bank of America began coverage on Microsoft in a report on Tuesday, March 24th. They issued a “buy” rating and a $500.00 price objective for the company. Finally, Wolfe Research cut their price objective on Microsoft from $625.00 to $530.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $575.34.

Microsoft Stock Performance

Microsoft stock opened at $424.54 on Thursday. Microsoft has a 52 week low of $356.28 and a 52 week 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 stock has a market cap of $3.15 trillion, a P/E ratio of 26.55, a price-to-earnings-growth ratio of 1.57 and a beta of 1.11. The stock has a 50 day moving average of $393.48 and a 200-day moving average of $450.61.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.86 by $0.28. The business had revenue of $81.27 billion during the quarter, compared to analyst estimates of $80.28 billion. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The business’s revenue was up 16.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.23 earnings per share. On average, analysts expect that Microsoft will post 16.54 EPS for the current fiscal year.

Microsoft Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft’s dividend payout ratio is currently 22.76%.

Insider Activity

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

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in MSFT. Peregrine Asset Advisers Inc. grew its position in shares of Microsoft by 1.8% during the first quarter. Peregrine Asset Advisers Inc. now owns 24,452 shares of the software giant’s stock worth $9,052,000 after acquiring an additional 443 shares during the last quarter. Patten Group Inc. lifted its position in Microsoft by 2.6% in the 1st quarter. Patten Group Inc. now owns 42,792 shares of the software giant’s stock valued at $15,840,000 after purchasing an additional 1,066 shares during the last quarter. Axis Wealth Partners LLC lifted its position in Microsoft by 10.1% in the 1st quarter. Axis Wealth Partners LLC now owns 2,375 shares of the software giant’s stock valued at $879,000 after purchasing an additional 218 shares during the last quarter. Royal Harbor Partners LLC boosted its stake in Microsoft by 20.9% during the 1st quarter. Royal Harbor Partners LLC now owns 14,631 shares of the software giant’s stock valued at $5,416,000 after purchasing an additional 2,533 shares during the period. Finally, Stevens Capital Partners boosted its stake in Microsoft by 2.2% during the 1st quarter. Stevens Capital Partners now owns 5,504 shares of the software giant’s stock valued at $2,038,000 after purchasing an additional 120 shares during the period. 71.13% of the stock is currently owned by institutional investors.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft announced a roughly $18B investment in Australia to expand Azure AI supercomputing, cloud capacity, cybersecurity and upskilling — a major long‑term revenue and capacity commitment that supports the AI growth narrative. Microsoft to invest $18B in Australia to expand AI, cloud and digital infrastructure
• Positive Sentiment: High‑profile investor Michael Burry disclosed a new long position in MSFT, signaling conviction from a value‑oriented, headline‑driving buyer — this can attract other investors looking for a contrarian entry. Big Short Investor Michael Burry Opens New Position in Microsoft Stock (MSFT)
• Positive Sentiment: Analysts remain upbeat: Jefferies reaffirmed a Buy and other firms (Guggenheim, TD Cowen) have high price targets or bullish notes citing Copilot/Azure monetization, supporting upside sentiment into earnings. Jefferies gives a buy rating on Microsoft
• Positive Sentiment: Gaming/product signals: Xbox branding returned and leaked details of a cheaper Xbox Game Pass Starter Edition have lifted expectations for consumer engagement and subscription growth. Microsoft Gaming reverts to Xbox branding as part of new mission statement
• Neutral Sentiment: Upcoming catalyst: Microsoft reports fiscal Q3 results on April 29 — earnings will likely drive larger intraday moves as investors look for Azure growth, Copilot adoption and AI capex conversion. Microsoft Will Report Q3 Earnings on April 29
• Neutral Sentiment: Market context: Tech sector strength and broader AI‑led optimism are supporting MSFT alongside peers; short‑interest data in the feed is not meaningful (reported 0 shares). Sector Update: Tech Stocks Gain Late Afternoon
• Negative Sentiment: Cost/structure concerns: Microsoft launched its first‑ever voluntary buyout program (~7% of U.S. workforce) as it reshapes for AI — while aimed at efficiency, the move and public discussion of heavy AI capex have pressured sentiment and raised near‑term uncertainty. Microsoft plans first voluntary employee buyout in company’s 51-year history
• Negative Sentiment: Investor worry over AI capital intensity and OpenAI dependence persists in commentary and some sell‑side notes, which could keep volatility elevated into earnings despite long‑term upside. Microsoft Is A Value Trap, OpenAI Dependence Could Backfire

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).