Microsoft (NASDAQ:MSFT) Trading 1.2% Higher – Time to Buy?

Microsoft Corporation (NASDAQ:MSFT) traded up 1.2% on Tuesday . The stock traded as high as $389.36 and last traded at $389.00. 32,761,911 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 37,604,891 shares. The stock had previously closed at $384.47.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft struck a high-profile partnership with SpaceX’s Starlink to expand global internet access and said it has surpassed its prior connectivity goal (now ~299M people reached) — this supports Azure/Orbital AI demand and strengthens Microsoft’s edge in delivering cloud + connectivity services. Microsoft and SpaceX’s Starlink partner on global community internet effort Microsoft, Starlink Join Forces To Close Global Digital Divide
• Positive Sentiment: Microsoft expanded its Sovereign Cloud with offline AI and disconnected operations — a direct commercial lever for governments and regulated industries that can drive higher‑margin, lock‑in enterprise contracts. Microsoft Expands Sovereign Cloud With Offline AI Capabilities
• Positive Sentiment: Analyst and institutional support continues: Goldman Sachs highlighted the Maia 200 accelerator (narrowing the gap versus peers) and firms like Citi/Goldman reiterated Buy ratings — these notes can stabilize sentiment and attract buyers after recent weakness. Maia 200 Gives Microsoft Stock a Boost With Goldman Sachs Citi and Goldman Sachs Reiterate Buy Ratings
• Positive Sentiment: An insider purchase and technical oversold signals have been flagged by commentators as evidence selling may be exhausted — that can attract bargain hunters on dips. Microsoft Is Sliding—An Insider Buy and Oversold Signals
• Neutral Sentiment: Leadership change in Xbox: Asha Sharma (from CoreAI) succeeds Phil Spencer — investors see this as a signal to integrate AI into gaming strategy (long-term upside) but it also introduces execution risk during transition. Microsoft Ties Xbox Leadership To AI Cloud And Security Ambitions
• Neutral Sentiment: OpenAI’s revised spending plan was framed by some banks as still favorable for cloud providers (including Microsoft) — supportive for Azure demand but highlights continued dependence on OpenAI commercial dynamics. OpenAI’s New Spending Plan Is Still a Positive
• Negative Sentiment: Investors remain worried about massive AI capex: recent reporting highlights huge quarterly capex and commentary that Microsoft’s multi‑quarter AI infrastructure build (and an $83B planning figure cited in coverage) could pressure returns and investor patience. That capex narrative has been a primary driver of recent weakness. Microsoft’s $83.09 Billion Decision Could Shape What Happens Next Is MSFT Stock Vulnerable to Rising CapEx Pressure?
• Negative Sentiment: Operational and sentiment risks persist: outage reports (Azure/Office 365) and public criticism from commentators (e.g., calls for a “refresh” from media figures) keep headline risk elevated and can spur short‑term volatility. Is Microsoft down? Downdetector reports issues Microsoft Needs a Refresh, Says Jim Cramer

Analyst Upgrades and Downgrades

Several brokerages have issued reports on MSFT. Evercore dropped their target price on shares of Microsoft from $640.00 to $580.00 and set an “outperform” rating on the stock in a report on Thursday, January 29th. Mizuho lowered their price target on Microsoft from $640.00 to $620.00 and set an “outperform” rating for the company in a report on Wednesday, January 21st. Wells Fargo & Company cut their target price on Microsoft from $630.00 to $615.00 and set an “overweight” rating on the stock in a research report on Thursday, January 29th. Wedbush reduced their price target on shares of Microsoft from $625.00 to $575.00 and set an “outperform” rating for the company in a research report on Thursday, January 29th. Finally, Raymond James Financial lowered their target price on Microsoft from $630.00 to $600.00 and set an “outperform” rating on the stock in a research note on Thursday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $591.95.

Microsoft Stock Performance

The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. The firm’s 50 day moving average is $450.33 and its 200-day moving average is $486.83. The company has a market cap of $2.89 trillion, a PE ratio of 24.33, a PEG ratio of 1.55 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 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 company had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. During the same quarter in the previous year, the company 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, research analysts anticipate that Microsoft Corporation will post 13.08 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be given 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 of this dividend is Thursday, February 19th. Microsoft’s payout ratio is presently 22.76%.

Insider Buying and Selling

In other Microsoft news, CEO Judson Althoff sold 12,750 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the completion of the sale, the chief executive officer owned 129,349 shares of the company’s stock, valued at $63,577,620.48. This trade represents a 8.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John W. Stanton purchased 5,000 shares of the firm’s stock in a transaction dated 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 owned 83,905 shares in the company, valued at approximately $33,339,651.75. The trade was a 6.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of MSFT. Longfellow Investment Management Co. LLC increased its position in Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after acquiring an additional 20 shares during the period. Bernzott Capital Advisors purchased a new stake in shares of Microsoft during the fourth quarter worth approximately $34,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft during the fourth quarter worth approximately $36,000. Bayforest Capital Ltd purchased a new position in Microsoft in the 3rd quarter valued at $38,000. Finally, Fairway Wealth LLC increased its stake in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after buying an additional 66 shares during the period. 71.13% of the stock is owned by institutional investors and hedge funds.

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).