Microsoft (NASDAQ:MSFT) Shares Up 3.1% – Time to Buy?

Posted by Stanley Muller on May 17th, 2026

Microsoft Corporation (NASDAQ:MSFT – Get Free Report)’s share price shot up 3.1% on Friday . The stock traded as high as $428.17 and last traded at $421.92. 48,965,632 shares traded hands during trading, an increase of 38% from the average session volume of 35,588,254 shares. The stock had previously closed at $409.43.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Bill Ackman revealed a new multi-billion-dollar stake in Microsoft (MSFT), saying the company looks attractively valued and highlighting Azure, Microsoft 365, and AI as key growth drivers. Reuters: Ackman’s Pershing Square takes stake in Microsoft, citing ‘compelling’ valuation
Positive Sentiment: Analysts and market commentary continued to argue that Microsoft’s AI infrastructure, Azure growth, and OpenAI exposure could support further upside, with some seeing the stock’s weaker recent performance as a buying opportunity. TipRanks: Microsoft Buy Rating Reiterated as AI and Cloud Momentum Builds
Neutral Sentiment: Microsoft also announced a board addition, appointing former EY chief Carmine Di Sibio to its board of directors, which is a governance update but not an immediate operating catalyst. PR Newswire: Microsoft announces appointment of Carmine Di Sibio to board of directors
Negative Sentiment: The UK opened an antitrust probe into Microsoft’s business software and cloud practices, creating a potential regulatory overhang for the stock. Reuters: UK opens antitrust probe into Microsoft’s business software
Negative Sentiment: LinkedIn, a Microsoft-owned unit, announced 5% workforce cuts, reinforcing that the company is still trimming costs even as it ramps AI spending. Reuters: LinkedIn to lay off 5% of workforce amid tech industry cuts

Analyst Ratings Changes

Several brokerages have weighed in on MSFT. Phillip Securities raised Microsoft to a “buy” rating and set a $485.00 target price on the stock in a research note on Wednesday. BNP Paribas Exane cut their target price on Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a research note on Friday, May 1st. Sanford C. Bernstein lifted their target price on Microsoft from $641.00 to $646.00 and gave the company an “outperform” rating in a research note on Thursday, April 30th. Jefferies Financial Group reaffirmed a “buy” rating on shares of Microsoft in a research note on Monday, May 4th. Finally, Mizuho cut their target price on Microsoft from $620.00 to $515.00 and set an “outperform” rating on the stock in a research note on Tuesday, April 14th. Thirty-nine investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $560.88.

Check Out Our Latest Stock Analysis on MSFT

Microsoft Trading Up 3.1%

The company has a market capitalization of $3.13 trillion, a price-to-earnings ratio of 25.11, a PEG ratio of 1.52 and a beta of 1.10. The firm has a 50-day moving average price of $398.18 and a 200-day moving average price of $441.39. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. During the same period last year, the firm earned $3.46 EPS. The firm’s revenue for the quarter was up 18.3% on a year-over-year basis. As a group, sell-side analysts predict that Microsoft Corporation will post 16.76 EPS for the current year.

Microsoft Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, May 21st. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. Microsoft’s dividend payout ratio (DPR) is 21.67%.

Insider Buying and Selling at Microsoft

In other news, Director John W. Stanton purchased 5,000 shares of the stock in a transaction dated Wednesday, February 18th. The shares were bought 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 in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, 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 $56,486,322.16. The trade was 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 company insiders.

Hedge Funds Weigh In On Microsoft

Hedge funds have recently modified their holdings of the stock. IRON Financial LLC lifted its position 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 during the last quarter. PMG Family Office LLC acquired a new position in shares of Microsoft during the 3rd quarter worth about $828,000. Trifecta Capital Advisors LLC lifted its position in shares of Microsoft by 2.3% during the 3rd quarter. Trifecta Capital Advisors LLC now owns 70,175 shares of the software giant’s stock worth $36,347,000 after purchasing an additional 1,572 shares during the last quarter. TD Waterhouse Canada Inc. lifted its position in shares of Microsoft by 1.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 949,901 shares of the software giant’s stock worth $493,860,000 after purchasing an additional 9,700 shares during the last quarter. Finally, Werba Rubin Papier Wealth Management lifted its position in shares of Microsoft by 15.7% during the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock worth $6,041,000 after purchasing an additional 1,698 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Company Profile

(Get Free Report)

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).