Microsoft’s (MSFT) “Buy” Rating Reiterated at Truist Financial

Truist Financial reiterated their buy rating on shares of Microsoft (NASDAQ:MSFT) in a research report released on Monday morning,Benzinga reports. They currently have a $600.00 price target on the software giant’s stock, up from their prior price target of $575.00.

Other equities analysts also recently issued reports about the company. Weiss Ratings upgraded Microsoft from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Melius Research set a $665.00 target price on Microsoft and gave the stock a “buy” rating in a report on Monday, October 5th. Argus dropped their price objective on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Yorkville Ives began coverage on shares of Microsoft in a research note on Monday, October 5th. They issued an “outperform” rating and a $615.00 target price on the stock. Finally, Phillip Securities downgraded shares of Microsoft from a “moderate buy” rating to a “hold” rating in a research note on Monday, October 12th. Forty-four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $596.07.

Microsoft Trading Down 0.1%

Shares of MSFT opened at $531.01 on Monday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $3.94 trillion, a P/E ratio of 29.57, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10. The stock’s fifty day simple moving average is $511.18 and its 200 day simple moving average is $437.96. Microsoft has a twelve month low of $349.20 and a twelve month high of $551.15.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating analysts’ consensus estimates of $4.71 by $0.18. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $92.28 billion for the quarter, compared to analysts’ expectations of $90.62 billion. During the same quarter last year, the firm earned $4.13 earnings per share. The firm’s revenue for the quarter was up 18.8% compared to the same quarter last year. On average, equities research analysts forecast that Microsoft will post 19.66 earnings per share for the current year.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio is presently 20.27%.

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 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 of the company’s stock, 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 legal filing with the Securities & Exchange Commission, which is available 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 transaction of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 150,314 shares of company stock valued at $75,404,992. Insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in MSFT. Montgomery Financial Services LLC acquired a new stake in shares of Microsoft in the 2nd quarter worth approximately $26,000. Frankly Finances LLC acquired a new position in shares of Microsoft during the second quarter valued at approximately $35,000. Bard Associates Inc. acquired a new position in shares of Microsoft during the second quarter valued at approximately $37,000. PMV Capital Advisers LLC acquired a new position in shares of Microsoft during the second quarter valued at approximately $38,000. Finally, Fiduciary Advisors Inc. raised its holdings in Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after purchasing an additional 34 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft News Summary

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.

Microsoft Company Profile

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.