Microsoft (NASDAQ:MSFT) Upgraded at Melius Research

Melius Research upgraded shares of Microsoft (NASDAQ:MSFT) from a hold rating to a buy rating in a research report released on Monday morning, MarketBeat reports. The firm currently has $665.00 price objective on the software giant’s stock.

A number of other analysts have also recently commented on the company. Bank of America lifted their target price on Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a research report on Tuesday, September 1st. Oppenheimer lifted their price target on Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. CLSA reissued an “outperform” rating on shares of Microsoft in a report on Thursday, July 30th. Cantor Fitzgerald lifted their target price on shares of Microsoft from $522.00 to $608.00 and gave the company an “overweight” rating in a report on Monday, September 21st. Finally, Tigress Financial upped their price target on shares of Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Forty-one equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $578.73.

Microsoft Stock Performance

Shares of MSFT opened at $529.76 on Monday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft has a 52-week low of $349.20 and a 52-week high of $553.72. The stock has a 50 day moving average price of $498.31 and a 200 day moving average price of $433.03. The company has a market capitalization of $3.93 trillion, a price-to-earnings ratio of 29.50, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.65 EPS. Research analysts predict that Microsoft will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is 20.27%.

Insider Activity

In related news, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 sale, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 143,009 shares of company stock worth $71,420,699 in the last ninety days. 0.03% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Microsoft

A number of large investors have recently modified their holdings of the business. FSA Investment Group LLC lifted its holdings in shares of Microsoft by 6.1% in the 3rd quarter. FSA Investment Group LLC now owns 1,487 shares of the software giant’s stock valued at $763,000 after buying an additional 85 shares during the period. Puff Wealth Management LLC grew its holdings in Microsoft by 7.4% during the third quarter. Puff Wealth Management LLC now owns 2,506 shares of the software giant’s stock worth $1,286,000 after acquiring an additional 173 shares during the period. Winebrenner Capital Management LLC grew its holdings in Microsoft by 0.5% during the third quarter. Winebrenner Capital Management LLC now owns 4,426 shares of the software giant’s stock worth $2,270,000 after acquiring an additional 22 shares during the period. Red Spruce Capital LLC raised its position in Microsoft by 2.2% in the third quarter. Red Spruce Capital LLC now owns 21,668 shares of the software giant’s stock worth $11,114,000 after acquiring an additional 469 shares in the last quarter. Finally, Steph & Co. lifted its holdings in Microsoft by 9.9% in the third quarter. Steph & Co. now owns 2,391 shares of the software giant’s stock valued at $1,226,000 after acquiring an additional 216 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip
• Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635
• Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats.
• Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date
• Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like.
• Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.