Microsoft (NASDAQ:MSFT) Now Covered by Bank of America

Bank of America initiated coverage on shares of Microsoft (NASDAQ:MSFT) in a research report sent to investors on Tuesday, Marketbeat.com reports. The firm issued a buy rating and a $500.00 price target on the software giant’s stock.

Several other research firms have also issued reports on MSFT. Rothschild & Co Redburn set a $450.00 price target on Microsoft in a report on Wednesday, January 21st. BMO Capital Markets decreased their price objective on Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a research note on Thursday, January 29th. New Street Research lifted their price objective on Microsoft from $670.00 to $675.00 and gave the company a “buy” rating in a research report on Thursday, January 29th. Sanford C. Bernstein reissued an “outperform” rating and issued a $641.00 target price (down from $645.00) on shares of Microsoft in a report on Thursday, January 29th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Microsoft from $575.00 to $550.00 and set an “overweight” 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-nine have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $591.34.

Microsoft Stock Down 2.7%

MSFT opened at $372.74 on Tuesday. The firm’s 50 day simple moving average is $415.00 and its two-hundred day simple moving average is $470.04. The company has a market capitalization of $2.77 trillion, a PE ratio of 23.31, a PEG ratio of 1.50 and a beta of 1.10. Microsoft has a 1-year low of $344.79 and a 1-year 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.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The firm had revenue of $81.27 billion during the quarter, compared to the consensus estimate of $80.28 billion. During the same quarter in the previous year, the firm posted $3.23 EPS. The company’s revenue for the quarter was up 16.7% compared to the same quarter last year. As a group, equities analysts forecast that Microsoft will post 13.08 EPS for the current year.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft’s dividend payout ratio (DPR) is 22.76%.

Insider Buying and Selling

In other Microsoft news, Director John W. Stanton purchased 5,000 shares of the company’s stock in a transaction on Wednesday, February 18th. The stock was acquired at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the purchase, the director directly owned 83,905 shares of the company’s stock, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of the 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 sale, 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. 0.03% of the stock is currently owned by insiders.

Institutional Trading of Microsoft

A number of institutional investors and hedge funds have recently bought and sold shares of MSFT. IRON Financial LLC raised its stake in shares of Microsoft by 23.2% during the 3rd quarter. IRON Financial LLC now owns 6,510 shares of the software giant’s stock worth $3,372,000 after purchasing an additional 1,225 shares in the last quarter. Wellington Capital Management Inc. acquired a new position in Microsoft during the second quarter worth $9,941,000. Sound View Wealth Advisors Group LLC raised 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 acquiring an additional 2,373 shares in the last quarter. PMG Family Office LLC acquired a new stake in Microsoft in the third quarter valued at $828,000. Finally, Trifecta Capital Advisors LLC lifted its stake in Microsoft by 2.3% in the third quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant’s stock valued at $36,347,000 after acquiring an additional 1,572 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: BofA reinstated coverage with a Buy rating and a $500 target, arguing Azure and Copilot momentum justify material upside — a prominent bullish signal for long‑term investors. BofA projects 31% rally
• Positive Sentiment: Unusual call‑option volume shows traders are buying at‑the‑money and slightly OTM calls today — a short‑term bullish signal that some investors expect a rebound or are hedging for upside. Investors piling into MSFT calls
• Positive Sentiment: Talent hires for Microsoft’s advanced AI teams (including experienced researchers under Mustafa Suleyman) reinforce MSFT’s long‑term AI capability and product road map. Microsoft hires AI researchers
• Neutral Sentiment: Microsoft agreed to rent a large Texas data‑center project that Oracle/OpenAI abandoned — this expands capacity but highlights industry competition for sites and local community approval challenges. Microsoft to rent Texas data center
• Neutral Sentiment: Microsoft President Brad Smith’s comments on investing in nuclear power and building AI guardrails signal long‑term infrastructure and safety focus — supportive for sustainability and compliance, but not an immediate earnings catalyst. Brad Smith on nuclear investment
• Neutral Sentiment: Multiple short‑interest entries in feeds show anomalous/zero values (likely data noise) and do not indicate a meaningful rise in shorts today.
• Negative Sentiment: OpenAI’s investor document flagged heavy dependence on Microsoft for funding and compute as a top risk — that disclosure raised concerns about the partnership’s stability and potential revenue recognition or strategic risk. OpenAI flags Microsoft dependence
• Negative Sentiment: News reports and analyst commentary point to a weak near‑term outlook and MSFT hitting new lows, triggering selling pressure as investors reassess near‑term growth vs. rising costs. Microsoft hits new low amid weak outlook
• Negative Sentiment: Melius and other analysts flagged reorganization of Copilot and broader heavy CapEx for AI as execution risks — investors worry monetization of Copilot and the $100–120B+ infrastructure spend will pressure margins before benefits materialize. Melius: Copilot reorg red flag

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).