Microsoft (NASDAQ:MSFT) Trading Up 1.2% – Should You Buy?

Microsoft Corporation (NASDAQ:MSFT) shares were up 1.2% during mid-day trading on Tuesday . The stock traded as high as $374.15 and last traded at $373.02. 43,686,854 shares traded hands during trading, an increase of 15% from the average session volume of 37,899,133 shares. The stock had previously closed at $368.57.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Several bullish notes pointed to Microsoft’s long-term AI and cloud strength, including Deutsche Bank reiterating a Buy view and other commentary highlighting Azure, Copilot, and enterprise security as potential future revenue drivers. Microsoft (MSFT) AI Story Gains Momentum with Deutsche Bank Call and CIO Survey
• Positive Sentiment: Microsoft also received support from strategic partnership and marketplace expansion news, including Commvault integration for AI/cyber resilience, Morningstar research in Microsoft 365/Copilot workflows, and Level Access joining Microsoft Marketplace. These developments reinforce the ecosystem and monetization story. Microsoft (MSFT) Expands Operations With a New Strategic Partnership
• Positive Sentiment: Some investors and commentators argued the selloff has made Microsoft look attractively valued, with Michael Burry’s long-dated call option bet and multiple “buy the dip” articles suggesting upside if AI spending eventually translates into stronger earnings. Ranking Every “Magnificent Seven” Stock From Most to Least Likely to Double by 2030
• Neutral Sentiment: Microsoft’s Irish operations drew attention as a profit powerhouse, underscoring the company’s global earnings footprint but not changing the near-term business outlook. Microsoft’s Irish Hub Is Profit Powerhouse
• Neutral Sentiment: A separate report said Microsoft will raise Xbox prices and discontinue the 2TB model starting Aug. 1, which may help margins but could also pressure console demand. Dear Microsoft Stock Fans, Mark Your Calendars for August 1
• Negative Sentiment: Investor sentiment has been hurt by a historic June selloff tied to concerns that Microsoft’s massive AI capex is taking too long to pay off, with reports saying the stock is headed for its worst month since 2000. Microsoft shares head for worst month since 2000 as AI concerns wipe out $570 billion
• Negative Sentiment: Microsoft is also facing fresh legal and regulatory pressure, including multiple securities-fraud class-action solicitation notices, a copyright lawsuit involving nearly 400 newspaper publishers, and EU/Italy scrutiny over Azure and Microsoft 365/Copilot practices. Microsoft, OpenAI Face Copyright Lawsuit From Nearly 400 Newspaper Publishers
• Negative Sentiment: Gaming news also looks mixed-to-negative, as Microsoft is reportedly pausing new third-party Game Pass deals while increasing Xbox hardware prices, adding to concerns about consumer-facing growth areas. Xbox reportedly pausing new third-party Game Pass deals, developers say

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Guggenheim reissued a “buy” rating and set a $586.00 target price on shares of Microsoft in a research report on Thursday, April 30th. President Capital raised their price target on shares of Microsoft from $500.00 to $520.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. HSBC lowered their price objective on shares of Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Mizuho cut their target price on Microsoft from $620.00 to $515.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 14th. Finally, TD Cowen restated a “buy” rating and issued a $540.00 target price on shares of Microsoft in a research note on Thursday, June 4th. Forty-one investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $560.86.

Microsoft Stock Performance

The stock has a market capitalization of $2.77 trillion, a price-to-earnings ratio of 22.20, a price-to-earnings-growth ratio of 1.34 and a beta of 1.11. The firm has a fifty day moving average of $409.33 and a 200 day moving average of $420.11. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same period in the previous year, the company posted $3.46 earnings per share. Microsoft’s revenue for the quarter was up 18.3% on a year-over-year basis. On average, sell-side analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is currently 21.67%.

Insider Activity at Microsoft

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Takeshi Numoto sold 4,500 shares of the company’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the transaction, the executive vice president owned 47,468 shares of the company’s stock, valued at approximately $19,122,009.12. This trade represents a 8.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,762 shares of company stock worth $10,508,361 in the last three months. Company insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

Institutional investors have recently modified their holdings of the business. Taylor Securities Services Inc. acquired a new position in Microsoft during the 4th quarter worth about $2,616,000. PMG Family Office LLC acquired a new position in Microsoft in the 3rd quarter valued at about $828,000. Werba Rubin Papier Wealth Management grew its position in Microsoft by 15.7% in the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after acquiring an additional 1,698 shares in the last quarter. SG Americas Securities LLC increased its stake in Microsoft by 2,332.1% during the fourth quarter. SG Americas Securities LLC now owns 6,746,017 shares of the software giant’s stock worth $3,262,509,000 after purchasing an additional 6,468,645 shares during the period. Finally, World Investment Advisors increased its stake in Microsoft by 22.1% during the fourth quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock worth $131,750,000 after purchasing an additional 49,371 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.

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).