Microsoft (NASDAQ:MSFT – Get Free Report) had its target price upped by stock analysts at Stifel Nicolaus from $392.00 to $415.00 in a research report issued to clients and investors on Thursday, MarketBeat.com reports. The brokerage presently has a “hold” rating on the software giant’s stock. Stifel Nicolaus’ target price would suggest a potential upside of 0.14% from the company’s previous close.
Several other equities research analysts have also recently weighed in on the company. Citigroup increased their price objective on Microsoft from $600.00 to $620.00 and gave the stock a “buy” rating in a report on Thursday. William Blair reiterated an “outperform” rating on shares of Microsoft in a report on Monday, March 9th. Phillip Securities upgraded Microsoft from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, February 1st. Sanford C. Bernstein increased their price objective on Microsoft from $641.00 to $646.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, JPMorgan Chase & Co. dropped their price objective on Microsoft from $575.00 to $550.00 and set an “overweight” rating for the company in a report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and an average price target of $556.15.
Microsoft Price Performance
Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping 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 business had revenue of $82.89 billion during the quarter, compared to analysts’ expectations of $81.44 billion. During the same quarter last year, the business posted $3.46 EPS. The business’s revenue was up 18.3% on a year-over-year basis. As a group, analysts predict that Microsoft will post 16.6 earnings per share for the current year.
Insider Buying and Selling
In related news, EVP Kathleen T. Hogan sold 12,321 shares of the firm’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 transaction of $5,045,695.92. Following the completion of the transaction, the executive vice president owned 137,933 shares of the company’s stock, valued at $56,486,322.16. This trade represents a 8.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John W. Stanton acquired 5,000 shares of Microsoft stock in a transaction that occurred on Wednesday, February 18th. The shares were bought at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the transaction, the director owned 83,905 shares in the company, valued at $33,339,651.75. This represents 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.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSFT. Vanguard Group Inc. raised its stake in shares of Microsoft by 2.3% in the fourth quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant’s stock worth $347,211,391,000 after purchasing an additional 15,955,898 shares during the last quarter. State Street Corp raised its stake in shares of Microsoft by 2.1% in the fourth quarter. State Street Corp now owns 306,150,608 shares of the software giant’s stock worth $148,060,557,000 after purchasing an additional 6,388,930 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Microsoft by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant’s stock worth $88,056,019,000 after purchasing an additional 1,911,142 shares during the last quarter. Morgan Stanley raised its stake in shares of Microsoft by 0.8% in the fourth quarter. Morgan Stanley now owns 121,220,561 shares of the software giant’s stock worth $58,624,690,000 after purchasing an additional 980,439 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Microsoft in the fourth quarter worth $50,664,631,000. Institutional investors own 71.13% of the company’s stock.
Microsoft News Roundup
Here are the key news stories impacting Microsoft this week:
- Positive Sentiment: Q3 results and the earnings call highlighted 40%+ Azure/cloud growth and accelerating AI monetization, giving investors confidence in the company’s long-term AI revenue runway. Microsoft Earnings Call: AI Growth Surges, Margins Squeezed
- Positive Sentiment: The U.S. Pentagon signed agreements allowing Microsoft’s AI tech on classified networks — a credibility and contract win that can translate into long-term, high‑value government revenue. Pentagon inks deals with Nvidia, Microsoft and AWS to deploy AI on classified networks
- Positive Sentiment: Analyst actions include several price‑target raises and reaffirmations (Benchmark raised to $525, others keep buy ratings), signaling continued bullish conviction among some buy‑side firms. Microsoft Corp. (MSFT) Price Target Increased to $525 by Benchmark
- Positive Sentiment: Product catalyst: rollout of Windows 11’s new Xbox Mode supports consumer engagement and adds a near‑term, tangible product story for the stock. Microsoft Stock (MSFT) Jumps on Windows 11 Xbox Mode Rollout
- Neutral Sentiment: The revised Microsoft–OpenAI relationship (ending exclusivity) is being parsed by markets: it reduces some exclusivity upside but clarifies commercial terms that could be neutral-to-positive longer term depending on monetization. Microsoft and OpenAI Just Ended Their Exclusive Deal, and Wall Street Is Trying Hard to Shake Off the Negatives for MSFT Stock
- Neutral Sentiment: Commentary from TV/hosts (e.g., Jim Cramer) describes MSFT as attractively valued but notes limited new messaging on the call — this shapes retail sentiment but isn’t new fundamental data. Jim Cramer on Microsoft: “Maybe You Can Consider It Cheap, But It’s Software”
- Negative Sentiment: Investors remain focused on record capex (roughly $190B guidance) and the near‑term hit to free cash flow — that spending narrative caused the post‑earnings pullback and continues to cap the multiple. Beat meets bill: MSFT stock slips on AI expenditure concerns despite strong Q3
- Negative Sentiment: Goldman’s note flagging extreme cloud cash burn and other outlets highlighting the industry’s rising AI capex raises concern that spending could pressure margins and returns if monetization lags. Microsoft, Amazon On Watch ― Goldman Sounds Alarm On 90% Cloud Cash Burn
- Negative Sentiment: Some brokers trimmed price targets or cut upside on valuation as they bake in capex risk (HSBC cut its target), keeping a portion of the market cautious. HSBC Cuts Microsoft Price Target to $571 From $593
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).
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