Microsoft Corporation (NASDAQ:MSFT) Given Consensus Rating of “Moderate Buy” by Brokerages

Shares of Microsoft Corporation (NASDAQ:MSFT) have been given a consensus recommendation of “Moderate Buy” by the forty-five research firms that are covering the company, MarketBeat.com reports. Five investment analysts have rated the stock with a hold rating, thirty-eight have assigned a buy rating and two have issued a strong buy rating on the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $579.8158.

A number of research firms recently commented on MSFT. Guggenheim reaffirmed a “buy” rating and issued a $586.00 price objective on shares of Microsoft in a research note on Thursday, January 22nd. Sanford C. Bernstein reissued an “outperform” rating and issued a $641.00 price target (down from $645.00) on shares of Microsoft in a research note on Thursday, January 29th. Cantor Fitzgerald reissued an “overweight” rating and set a $590.00 target price on shares of Microsoft in a research report on Thursday, January 29th. DZ Bank reissued a “buy” rating on shares of Microsoft in a research report on Thursday, January 29th. Finally, Phillip Securities upgraded Microsoft from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, February 1st.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft agreed to take up spare capacity at a Norway data center originally intended for OpenAI, giving it access to tens of thousands of Nvidia GPUs and immediately boosting its AI compute footprint — a direct, near-term capacity win for Azure and Copilot workloads. OpenAI pulls back from Stargate Norway data center deal as Microsoft takes over
• Positive Sentiment: Technical and sentiment momentum: Microsoft just logged its best three-session performance since April 2023, reflecting a short-term rotation back into beaten-down mega-cap AI names and traders reacting to the compute/capacity news. Microsoft’s stock has sprung back to life: It’s on its strongest run in 3 years, by one measure
• Positive Sentiment: Analyst and industry bullishness: a number of commentaries and upgrades argue Microsoft’s pullback is overdone given its cloud backlog and Copilot monetization potential — supporting a view that further upside is possible if execution continues. Microsoft Stock Got Punished by AI Fears. The Market’s Been Too Harsh.
• Neutral Sentiment: Massive AI capex and data‑center expansion remain a double‑edged sword: Microsoft is accelerating build‑out (including a new 3,200‑acre Wyoming site) and guiding very large capital spending — this supports long‑term growth but keeps near‑term capex scrutiny and margin pressure in play. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap?
• Neutral Sentiment: Unusually large options volume has been reported, indicating heightened trader activity and positioning around the name — this amplifies moves but can increase short‑term volatility. Microsoft Sees Unusually Large Options Volume (NASDAQ:MSFT)
• Negative Sentiment: Price‑target trims and valuation questions persist: several firms have reduced targets amid the post‑peak re‑rating, keeping upside under review and maintaining downside risk if growth or margin inflection points slip. Mizuho Trims Microsoft Price Target to $515: How Much Upside Is Left in This AI Titan?
• Negative Sentiment: Partnership and competitive risk: mixed signals from AI partners (OpenAI internal comments and Anthropic activity) highlight dependency and competitive uncertainty around who controls model distribution and which clouds customers choose — a potential long‑term strategic headwind. OpenAI Says Microsoft ‘Limited’ Its Reach, Slams Anthropic For ‘Inflated $30B Revenue

Microsoft Stock Up 4.6%

Microsoft stock opened at $411.22 on Thursday. Microsoft has a 52 week low of $355.67 and a 52 week high of $555.45. The stock has a market cap of $3.05 trillion, a price-to-earnings ratio of 25.72, a PEG ratio of 1.49 and a beta of 1.11. The company’s 50-day moving average price is $390.90 and its two-hundred day moving average price is $455.36. 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 released its earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share 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 during the quarter, compared to the consensus estimate of $80.28 billion. During the same period in the prior year, the firm posted $3.23 earnings per share. The firm’s revenue for the quarter was up 16.7% compared to the same quarter last year. On average, analysts expect that Microsoft will post 13.08 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. Stockholders of record on Thursday, May 21st will be paid a $0.91 dividend. The ex-dividend date is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s dividend payout ratio is currently 22.76%.

Insider Transactions at Microsoft

In other Microsoft news, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction 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 completion of the transaction, the executive vice president owned 137,933 shares in the company, valued at approximately $56,486,322.16. The trade was a 8.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director John W. Stanton purchased 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The stock was acquired 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 directly owned 83,905 shares of the company’s stock, valued at $33,339,651.75. The trade was a 6.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Microsoft

A number of hedge funds and other institutional investors have recently bought and sold shares of MSFT. Longfellow Investment Management Co. LLC grew its holdings in shares of Microsoft by 51.3% during the second 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 bought a new stake in Microsoft in the 4th quarter valued at approximately $34,000. Timmons Wealth Management LLC acquired a new position in Microsoft during the 4th quarter worth approximately $36,000. Bayforest Capital Ltd acquired a new position in Microsoft during the 3rd quarter worth approximately $38,000. Finally, Fairway Wealth LLC grew its stake in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after acquiring an additional 66 shares in the last quarter. 71.13% of the stock is 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).