Raymond James Financial Upgrades Microsoft (NASDAQ:MSFT) to Moderate Buy

Microsoft (NASDAQ:MSFT) was upgraded by equities researchers at Raymond James Financial from a “strong sell” rating to a “moderate buy” rating in a research report issued on Tuesday, Zacks reports.

A number of other research firms also recently issued reports on MSFT. Barclays raised their price target on Microsoft from $512.00 to $600.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 13th. TD Cowen boosted their price objective on Microsoft from $540.00 to $625.00 and gave the company a “buy” rating in a research note on Thursday, October 15th. Cantor Fitzgerald increased their price objective on Microsoft from $522.00 to $608.00 and gave the company an “overweight” rating in a report on Monday, September 21st. Tigress Financial increased their price objective on Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Finally, Benchmark restated a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. Forty-five analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $596.07.

Microsoft Stock Performance

Shares of MSFT stock opened at $531.01 on Tuesday. The stock’s 50-day moving average is $511.18 and its two-hundred day moving average is $437.96. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft has a 1 year low of $349.20 and a 1 year high of $551.15. The firm has a market cap of $3.94 trillion, a price-to-earnings ratio of 29.57, a PEG ratio of 1.68 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last posted its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating the consensus estimate of $4.71 by $0.18. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The business had revenue of $92.28 billion during the quarter, compared to the consensus estimate of $90.62 billion. During the same period in the previous year, the business earned $4.13 EPS. The business’s quarterly revenue was up 18.8% on a year-over-year basis. Analysts predict that Microsoft will post 19.66 earnings per share for the current year.

Insider Buying and Selling

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 150,314 shares of company stock valued at $75,404,992 in the last quarter. 0.03% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Microsoft

Large investors have recently modified their holdings of the stock. Sullivan Wood Capital Management LLC increased its stake in Microsoft by 3.2% in the 3rd quarter. Sullivan Wood Capital Management LLC now owns 647 shares of the software giant’s stock valued at $332,000 after buying an additional 20 shares during the last quarter. Narus Financial Partners LLC raised its stake in shares of Microsoft by 0.4% during the 3rd quarter. Narus Financial Partners LLC now owns 4,487 shares of the software giant’s stock valued at $2,301,000 after purchasing an additional 20 shares during the period. Box Hill Private Wealth LLC lifted its holdings in Microsoft by 0.5% during the 2nd quarter. Box Hill Private Wealth LLC now owns 4,272 shares of the software giant’s stock worth $1,593,000 after purchasing an additional 21 shares in the last quarter. PMG Family Office LLC lifted its holdings in Microsoft by 1.0% during the 3rd quarter. PMG Family Office LLC now owns 2,063 shares of the software giant’s stock worth $1,058,000 after purchasing an additional 21 shares in the last quarter. Finally, Dynamic Financial Group boosted its stake in Microsoft by 1.5% in the 3rd quarter. Dynamic Financial Group now owns 1,439 shares of the software giant’s stock worth $738,000 after purchasing an additional 21 shares during the period. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reported earnings of $4.89 per share versus the $4.71–$4.72 consensus and revenue of $92.28 billion, up 19% year over year and above estimates of approximately $90.6 billion. Net income increased 32%, while the company extended its streak of record quarterly revenue. Microsoft Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Azure growth accelerated to 48%, generating approximately $33.2 billion in quarterly revenue. Stronger-than-expected cloud demand suggests Microsoft’s investments in artificial intelligence and Copilot-related services are beginning to translate into significant sales and profit growth. Microsoft Azure Revenue Surges
• Neutral Sentiment: Microsoft disclosed that commercial arrangements with OpenAI produced roughly $10 billion of revenue during the quarter, highlighting the value of the partnership but also the company’s substantial financial dependence on a single AI ecosystem. Microsoft Recorded $10 Billion in Revenue From OpenAI
• Negative Sentiment: Microsoft lowered its 2026 capital-expenditure forecast to $170 billion from $175 billion, citing delays in third-party capacity. The reduction may ease cash-flow pressure, but it also raises concerns that infrastructure constraints could limit Azure growth and delay returns on AI investment. Microsoft Cuts Capex Forecast on AI Capacity Delays
• Negative Sentiment: The company is offering voluntary buyouts to roughly 60,000 employees while spending heavily on data centers. Although the effort could improve long-term efficiency, investors may view it as evidence that Microsoft is managing mounting AI-related costs. Rising interest rates also pose a valuation risk for the high-growth technology sector.

About Microsoft

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.