Microsoft’s (MSFT) Outperform Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada reiterated their outperform rating on shares of Microsoft (NASDAQ:MSFT) in a report issued on Monday,MarketScreener reports.

Other equities analysts have also issued reports about the stock. BMO Capital Markets lowered their target price on shares of Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a research report on Thursday, January 29th. DA Davidson reissued a “buy” rating and set a $650.00 price objective on shares of Microsoft in a research report on Thursday, January 29th. New Street Research lifted their price objective on shares of Microsoft from $670.00 to $675.00 and gave the company a “buy” rating in a research note on Thursday, January 29th. Wedbush decreased their target price on shares of Microsoft from $625.00 to $575.00 and set an “outperform” rating for the company in a research note on Thursday, January 29th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Microsoft in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $591.95.

Microsoft Stock Performance

Shares of MSFT stock opened at $405.20 on Monday. The stock’s 50-day moving average is $438.52 and its two-hundred day moving average is $481.02. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. Microsoft has a 1 year low of $344.79 and a 1 year high of $555.45. The firm has a market cap of $3.01 trillion, a price-to-earnings ratio of 25.34, a PEG ratio of 1.58 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last announced its earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.86 by $0.28. The firm had revenue of $81.27 billion during the quarter, compared to analysts’ expectations of $80.28 billion. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The business’s revenue was up 16.7% on a year-over-year basis. During the same period in the prior year, the firm earned $3.23 EPS. Analysts predict that Microsoft will post 13.08 earnings per share for the current year.

Insider Buying and Selling at Microsoft

In related news, Director John W. Stanton purchased 5,000 shares of the stock in a transaction dated Wednesday, February 18th. The shares were acquired at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the purchase, the director directly owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC grew its stake in Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after acquiring an additional 20 shares during the last quarter. Bernzott Capital Advisors purchased a new stake in shares of Microsoft in the fourth quarter valued at about $34,000. Bayforest Capital Ltd acquired a new stake in shares of Microsoft in the third quarter valued at approximately $38,000. Timmons Wealth Management LLC purchased a new position in shares of Microsoft during the 4th quarter worth approximately $36,000. Finally, Fairway Wealth LLC increased its stake in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Broadcom’s strong revenue outlook and commentary that AI semiconductor demand is accelerating reinforces the view that hyperscalers (including Microsoft) will keep investing heavily in data centers — a direct tailwind for Azure and MSFT’s cloud AI monetization. Broadcom sees revenue above estimates as AI fuels custom chip demand
• Positive Sentiment: Industry analysis pointing to a ~$650B AI capex cycle (chips, servers, networking) supports durable demand for Microsoft’s cloud, AI services, and enterprise partnerships — a structural revenue driver. The $650 Billion AI Surge Is Here—2 Semiconductor ETFs to Play It
• Positive Sentiment: Big Tech’s White House pledge to fund new power generation/infrastructure for AI data centers reduces regulatory/political risk and potential utility bill backlash for operators like Microsoft, easing a possible operational headwind. Tech Bosses Tell Trump They’ll Pay Up for Electricity
• Neutral Sentiment: Executive reshuffle at Microsoft Gaming (Asha Sharma named CEO) focuses integration and growth post‑Acquisition; strategic but longer‑dated for material revenue effects. Microsoft Gaming Leadership Reset Puts Integration And Growth In Focus
• Neutral Sentiment: CEO Satya Nadella’s public comments acknowledging AI‑driven job displacement underline Microsoft’s narrative that AI is transformative — useful for strategic positioning but neutral for immediate cash flow. Satya Nadella Says AI Will Displace Workers—’Best Protection…Transform Yourself’
• Negative Sentiment: Valuation and AI profitability concerns resurfaced after recent share‑price pullbacks; analysts and investors are reassessing whether current multiples properly reflect execution risk and long‑term AI margins. Assessing Microsoft (MSFT) Valuation After Recent Share Price Pullback And AI Profitability Questions
• Negative Sentiment: Broker downgrades (Melius Research, Stifel) to Hold and public commentator concern (Jim Cramer) add selling pressure and reinforce short‑term skepticism. Melius Research and Stifel Downgrade Microsoft Corporation (MSFT) to Hold
• Negative Sentiment: Reputational/operational risk after reports of widespread Outlook email blocking drew user ire — this can draw regulatory scrutiny or customer friction if persistent. Microsoft Draws Internet Ire Over Wave of Email Blocking
• Negative Sentiment: Reports that OpenAI is developing a GitHub alternative highlight competitive risk in developer tools — a potential threat to parts of Microsoft’s developer ecosystem over time. OpenAI is developing alternative to Microsoft’s GitHub, The Information reports

Microsoft Company Profile

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).