Microsoft (NASDAQ:MSFT) Price Target Cut to $550.00 by Analysts at Deutsche Bank Aktiengesellschaft

Microsoft (NASDAQ:MSFT) had its target price lowered by Deutsche Bank Aktiengesellschaft from $575.00 to $550.00 in a research note published on Thursday morning, MarketBeat.com reports. The brokerage currently has a buy rating on the software giant’s stock.

Several other analysts also recently commented on the company. Barclays lowered their price objective on Microsoft from $600.00 to $545.00 and set an “overweight” rating for the company in a research note on Thursday. TD Cowen dropped their price target on Microsoft from $610.00 to $540.00 and set a “buy” rating on the stock in a report on Thursday, April 16th. Jefferies Financial Group reissued a “buy” rating on shares of Microsoft in a research report on Friday, April 24th. BMO Capital Markets reduced their price objective on Microsoft from $575.00 to $505.00 and set an “outperform” rating for the company in a research note on Tuesday. Finally, Benchmark restated a “buy” rating and issued a $525.00 price objective (up from $450.00) on shares of Microsoft in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $558.67.

Microsoft Stock Performance

Shares of Microsoft stock opened at $407.78 on Thursday. The company has a market cap of $3.03 trillion, a PE ratio of 24.27, a price-to-earnings-growth ratio of 1.60 and a beta of 1.11. Microsoft has a 52 week low of $356.28 and a 52 week high of $555.45. The business has a 50 day moving average price of $395.28 and a 200-day moving average price of $448.37. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, topping the consensus estimate of $4.06 by $0.21. The firm had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a return on equity of 33.00% and a net margin of 39.34%.The company’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the business posted $3.46 earnings per share. Equities analysts anticipate that Microsoft will post 16.54 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft’s dividend payout ratio (DPR) is currently 22.76%.

Insiders Place Their Bets

In other Microsoft news, EVP Kathleen T. Hogan sold 12,321 shares of the firm’s stock in a transaction on Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following the completion of the sale, the executive vice president directly owned 137,933 shares of the company’s stock, valued at $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director John W. Stanton bought 5,000 shares of the firm’s stock in a transaction on Wednesday, February 18th. The stock was purchased at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the transaction, the director directly owned 83,905 shares of the company’s stock, valued at approximately $33,339,651.75. The trade was a 6.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

A number of large investors have recently bought and sold shares of MSFT. Norges Bank purchased a new stake in Microsoft in the fourth quarter worth $50,664,631,000. Auto Owners Insurance Co boosted its holdings in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after acquiring an additional 60,009,531 shares during the period. Nuveen LLC bought a new position in shares of Microsoft in the first quarter worth $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Microsoft by 500.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock worth $30,840,432,000 after acquiring an additional 49,618,571 shares during the period. Finally, Laurel Wealth Advisors LLC boosted its holdings in shares of Microsoft by 49,640.3% in the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock worth $14,905,904,000 after acquiring an additional 29,906,791 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 beat and AI/cloud momentum — MSFT beat EPS and revenue expectations, Azure/cloud growth accelerated ~40% and management cited an AI revenue run‑rate near $37B, supporting the long‑term growth story. Microsoft Q3 press release and transcript
• Positive Sentiment: Analysts largely remain bullish — multiple firms reaffirmed Buy/Outperform ratings and some raised targets (Wells Fargo, Piper Sandler and others), reflecting confidence in Azure and AI monetization. Microsoft Wins Buy Rating on Strong AI-Driven Cloud Momentum
• Positive Sentiment: Product traction: Copilot & LinkedIn monetization — management said paid Copilot users and LinkedIn AI hiring products are scaling, which supports higher recurring AI revenue potential. Microsoft says it has over 20m paid Copilot users
• Neutral Sentiment: Wall Street is split — some firms trimmed targets on valuation/spending concerns while others lifted targets on stronger AI monetization; expect continued divergent analyst commentary and price‑target revisions. Wall Street Splits on Microsoft After Earnings
• Neutral Sentiment: Options activity shows speculative bullish interest — unusually large call volume suggests some traders are betting on a rebound even as the stock trades lower (this can amplify intraday moves).
• Negative Sentiment: Heavy capex & margin/cash‑flow concerns — MSFT raised 2026 capex guidance toward ~\$190B and noted a meaningful jump in infrastructure spending; investors sold into the beat, fearing pressure on free cash flow and near‑term returns. Microsoft Falls 5% Despite Q3 Beat: Why $190 Billion in AI Spending Has Investors Worried
• Negative Sentiment: Near‑term target trims and one‑time charges — several firms trimmed targets and Microsoft disclosed charges (e.g., voluntary retirement program) and other near‑term costs, adding to headline risk. Cantor Fitzgerald Cuts Microsoft Price Target

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).