Microsoft (NASDAQ:MSFT) Stock Price Up 3% – Should You Buy?

Microsoft Corporation (NASDAQ:MSFT)’s stock price traded up 3% on Wednesday . The stock traded as high as $388.83 and last traded at $384.28. 46,814,788 shares changed hands during mid-day trading, an increase of 23% from the average daily volume of 37,974,023 shares. The stock had previously closed at $373.02.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Haleon announced a new five-year partnership to expand its use of Microsoft’s AI, cloud, and data tools across global operations, reinforcing Microsoft’s enterprise AI momentum and potential future Azure demand. Why is Microsoft stock gaining 4% today?
• Positive Sentiment: A Jefferies CIO survey said Azure is widening its lead over AWS among U.S. chief information officers, supporting the case that Microsoft is taking share in cloud infrastructure. Microsoft (MSFT) Azure Widens Lead over AWS in Jefferies CIO Survey
• Positive Sentiment: JMP Securities reaffirmed a bullish view on Microsoft after the Copilot Cowork launch, while other analysts continued to highlight Microsoft as an AI leader with upside potential. JMP Securities Reaffirms Bullish Outlook on Microsoft Corporation (MSFT) Following Copilot Cowork Launch
• Neutral Sentiment: Microsoft is reportedly preparing another round of layoffs affecting less than 2.5% of its workforce, including parts of Xbox, sales, and consulting; investors may view this as cost discipline, but it also signals ongoing pressure from heavy AI infrastructure spending. Microsoft plans another round of job cuts, impacting thousands of roles
• Negative Sentiment: Microsoft is facing fresh securities-class-action headlines tied to alleged misstatements about Copilot and Azure functionality, adding legal overhang even if these claims are not yet proven. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Several reports highlighted valuation concerns and recent weakness, with some commentators noting Microsoft’s premium P/E and warning that AI spending is weighing on sentiment and margins. Microsoft Trades at a Premium P/E: Buy, Sell or Hold the Stock Now?

Analyst Upgrades and Downgrades

MSFT has been the subject of several recent analyst reports. Oppenheimer reissued an “outperform” rating and set a $515.00 price objective (down from $630.00) on shares of Microsoft in a report on Monday, April 27th. TD Cowen reiterated a “buy” rating and set a $540.00 target price on shares of Microsoft in a research report on Thursday, June 4th. Cantor Fitzgerald reissued an “overweight” rating and issued a $502.00 price target on shares of Microsoft in a research note on Thursday, June 4th. Robert W. Baird cut their price target on shares of Microsoft from $540.00 to $500.00 and set an “outperform” rating for the company in a research note on Wednesday, April 15th. Finally, DA Davidson decreased their price target on shares of Microsoft from $650.00 to $550.00 and set a “buy” rating on the stock in a report on Thursday, April 30th. Forty-one equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $560.86.

Microsoft Price Performance

The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The business’s 50-day simple moving average is $408.34 and its 200 day simple moving average is $419.37. The firm has a market capitalization of $2.85 trillion, a P/E ratio of 22.87, a PEG ratio of 1.33 and a beta of 1.11.

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

Microsoft Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft’s dividend payout ratio is currently 21.67%.

Insider Activity

In related news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer directly owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Takeshi Numoto sold 4,500 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the sale, the executive vice president directly owned 47,468 shares of the company’s stock, valued at $19,122,009.12. The trade was a 8.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 23,762 shares of company stock valued at $10,508,361. 0.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microsoft

Several hedge funds and other institutional investors have recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC grew its position in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after buying an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new position in shares of Microsoft during the fourth quarter valued at approximately $34,000. Timmons Wealth Management LLC purchased a new stake in Microsoft in the fourth quarter worth $36,000. Fairway Wealth LLC boosted its holdings in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after acquiring an additional 66 shares in the last quarter. Finally, University of Illinois Foundation bought a new stake in Microsoft in the second quarter valued at $50,000. 71.13% of the stock is owned by institutional investors.

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).