Microsoft (NASDAQ:MSFT) Trading 4.6% Higher – Still a Buy?

Microsoft Corporation (NASDAQ:MSFT)’s stock price traded up 4.6% during mid-day trading on Wednesday . The company traded as high as $414.37 and last traded at $411.22. 44,440,224 shares were traded during trading, an increase of 25% from the average session volume of 35,631,781 shares. The stock had previously closed at $393.11.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Fairwater AI data center in Wisconsin went live ahead of schedule, a tangible execution win that eases near‑term capacity concerns and signals Microsoft is accelerating AI infrastructure deployment — a direct positive for Azure AI revenue prospects. Microsoft stock jumps as AI data center goes live
• Positive Sentiment: Large enterprise partnerships and marketplace integrations broaden Azure adoption: Stellantis signed a five‑year AI/cloud deal and Expert.ai’s EidenAI Suite is now on Azure Marketplace — both expand addressable enterprise demand for Microsoft’s cloud + Copilot stack. Stellantis, Microsoft sign five-year partnership Expert.ai and Microsoft Italy announce collaboration
• Positive Sentiment: Government and regulatory adoption — the CFTC is using Microsoft Copilot/AI tools for surveillance, a sign that public‑sector adoption of Microsoft AI products is rising and provides a durable revenue cohort. CFTC Uses Microsoft AI Tools
• Neutral Sentiment: Analyst moves are mixed: TD Cowen lowered its price target to $540 but kept a Buy rating (maintains bullish long‑term view despite trimming upside), while other firms have grown cautious — watch revisions for near‑term momentum. TD Cowen price target update
• Neutral Sentiment: Macro/earnings calendar: investors are watching fiscal Q3 results (Apr 29) for signs AI spend is translating into accelerating Azure revenue and Copilot monetization; near‑term volatility could persist into the print. Microsoft eyes AI execution, Azure growth
• Negative Sentiment: Industry capacity risk: Financial Times reports delays on a sizeable share of U.S. data‑center builds (affecting multiple players), underscoring supply‑chain and permitting risks that could constrain AI rollout timing and margin recovery. Data centre delays threaten to choke AI expansion
• Negative Sentiment: Bearish commentary and downside scenarios remain: some analysts and opinion pieces argue MSFT still faces near‑term growth/valuation risks (including calls for deeper corrections), so rallies could be met with profit‑taking until clearer proof of AI monetization appears. Microsoft: Don’t Buy The Dip

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Sanford C. Bernstein restated an “outperform” rating and set a $641.00 price target (down from $645.00) on shares of Microsoft in a report on Thursday, January 29th. Robert W. Baird reduced their price target on Microsoft from $540.00 to $500.00 and set an “outperform” rating on the stock in a report on Wednesday. Royal Bank Of Canada restated an “outperform” rating on shares of Microsoft in a report on Monday, March 2nd. Oppenheimer restated an “outperform” rating on shares of Microsoft in a report on Thursday, January 29th. Finally, BNP Paribas Exane reduced their price target on Microsoft from $659.00 to $556.00 and set an “outperform” rating on the stock in a report on Friday, April 10th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $577.58.

Microsoft Price Performance

The business has a fifty day simple moving average of $391.43 and a two-hundred day simple moving average of $455.12. 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 $3.14 trillion, a PE ratio of 26.44, a P/E/G ratio of 1.55 and a beta of 1.11.

Microsoft (NASDAQ:MSFT) last posted 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 for the quarter, compared to the consensus estimate of $80.28 billion. During the same quarter in the prior year, the business earned $3.23 EPS. The business’s revenue for the quarter was up 16.7% on a year-over-year basis. Research analysts forecast that Microsoft Corporation will post 13.08 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.91 per share. 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 22.76%.

Insider Buying and Selling

In related news, Director John W. Stanton purchased 5,000 shares of the company’s stock in a transaction dated Wednesday, February 18th. The shares were purchased at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the transaction, the director directly owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of the business’s 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 completion of the sale, the executive vice president directly owned 137,933 shares in the company, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.03% of the stock is currently owned by corporate insiders.

Institutional Trading of Microsoft

A number of hedge funds have recently made changes to their positions in MSFT. IRON Financial LLC grew its position in shares of Microsoft by 23.2% during the third quarter. IRON Financial LLC now owns 6,510 shares of the software giant’s stock valued at $3,372,000 after purchasing an additional 1,225 shares in the last quarter. PMG Family Office LLC bought a new position in Microsoft during the third quarter valued at approximately $828,000. Trifecta Capital Advisors LLC boosted its stake in Microsoft by 2.3% during the third quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant’s stock valued at $36,347,000 after buying an additional 1,572 shares during the last quarter. Weaver Capital Management LLC boosted its stake in Microsoft by 14.0% during the third quarter. Weaver Capital Management LLC now owns 18,340 shares of the software giant’s stock valued at $9,499,000 after buying an additional 2,247 shares during the last quarter. Finally, TD Waterhouse Canada Inc. boosted its stake in Microsoft by 1.0% during the third quarter. TD Waterhouse Canada Inc. now owns 949,901 shares of the software giant’s stock valued at $493,860,000 after buying an additional 9,700 shares during 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).