Microsoft (NASDAQ:MSFT) Shares Up 3% – Here’s Why

Microsoft Corporation (NASDAQ:MSFT) traded up 3% during trading on Wednesday . The stock traded as high as $401.47 and last traded at $400.6630. 42,905,057 shares changed hands during trading, an increase of 14% from the average session volume of 37,762,914 shares. The stock had previously closed at $389.00.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: AI panic cooled after comments from Anthropic that reassured investors about AI’s enterprise impact, reducing fears that new models will quickly displace incumbent software vendors; that relief is cited as a near-term catalyst lifting MSFT. Read More.
• Positive Sentiment: The White House is convening major cloud/AI operators (including Microsoft) for a “rate payer protection” pledge to limit electricity cost impacts from data centers — a policy step that could lower regulatory and cost uncertainty for hyperscalers. Read More.
• Positive Sentiment: Microsoft announced/expanded collaboration with SpaceX’s Starlink as part of a broader connectivity push (surpassed 250M connectivity goal), supporting Azure edge reach and new customer access in emerging markets — a growth enabler for cloud and AI services. Read More.
• Positive Sentiment: Insider buying and analyst notes arguing MSFT is oversold (and remains a core AI infrastructure winner) are providing technical and sentiment support for buyers after recent pullbacks. Read More.
• Neutral Sentiment: Broad tech strength ahead of Nvidia earnings lifted the sector, which helped Microsoft trade up alongside peers; momentum may be tied to sector flows rather than company-specific catalysts. Read More.
• Neutral Sentiment: Microsoft participated in funding rounds and partnerships (e.g., backing Wayve, other ecosystem deals) that show M&A/capital support for strategic bets but have limited direct near-term earnings impact. Read More.
• Neutral Sentiment: Xbox leadership transition (Phil Spencer retirement; Asha Sharma promoted) ties gaming more tightly to AI/cloud strategy — a strategic move but not an immediate earnings swing. Read More.
• Negative Sentiment: Japan’s Fair Trade Commission reportedly raided Microsoft Japan over suspected restrictions on Azure customers using rival cloud services — potential regulatory/legal risk that could weigh on investor sentiment. Read More.
• Negative Sentiment: Ongoing investor concern about very large AI capex and the pace of returns (OpenAI spend, datacenter buildouts) continues to pressure valuation; commentary from traders/analysts and media (e.g., Jim Cramer saying MSFT “needs a refresh”) contributes to cautious sentiment. Read More.

Analysts Set New Price Targets

MSFT has been the topic of several recent analyst reports. Daiwa Securities Group cut their price objective on Microsoft from $630.00 to $600.00 and set a “buy” rating on the stock in a report on Wednesday, February 4th. BMO Capital Markets dropped their target price on shares of Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a research report on Thursday, January 29th. Oppenheimer restated an “outperform” rating on shares of Microsoft in a research report on Thursday, January 29th. Wall Street Zen lowered shares of Microsoft from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Finally, UBS Group reissued an “outperform” rating on shares of Microsoft in a research note on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $591.95.

Microsoft Trading Up 3.0%

The business has a 50-day moving average of $448.58 and a 200-day moving average of $485.89. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09. The stock has a market cap of $2.98 trillion, a price-to-earnings ratio of 25.06, a PEG ratio of 1.50 and a beta of 1.08.

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

Microsoft Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Thursday, February 19th. Microsoft’s dividend payout ratio is 22.76%.

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 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 approximately $26,703,959.04. This trade represents a 4.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director John W. Stanton purchased 5,000 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was purchased at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the transaction, the director owned 83,905 shares of the company’s stock, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.03% of the stock is owned by company insiders.

Institutional Investors Weigh In On Microsoft

Several hedge funds have recently modified their holdings of the business. Longfellow Investment Management Co. LLC lifted its position in shares of 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 acquiring an additional 20 shares during the period. Bernzott Capital Advisors acquired a new position in shares of Microsoft in the fourth quarter valued at $34,000. Bayforest Capital Ltd bought a new position in Microsoft in the third quarter worth $38,000. Timmons Wealth Management LLC acquired a new stake in Microsoft during the fourth quarter worth $36,000. Finally, Fairway Wealth LLC boosted its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after buying an additional 66 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

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).