Guggenheim Reaffirms “Buy” Rating for Microsoft (NASDAQ:MSFT)

Microsoft (NASDAQ:MSFT)‘s stock had its “buy” rating reiterated by research analysts at Guggenheim in a research note issued on Thursday,Benzinga reports. They currently have a $586.00 price target on the software giant’s stock. Guggenheim’s price objective would indicate a potential upside of 30.49% from the stock’s previous close.

Other equities analysts have also issued reports about the company. Rothschild & Co Redburn decreased their price objective on Microsoft from $500.00 to $450.00 and set a “neutral” rating for the company in a research report on Wednesday. Citigroup dropped their price objective on shares of Microsoft from $690.00 to $660.00 and set a “buy” rating on the stock in a report on Wednesday. Raymond James Financial lowered their target price on Microsoft from $630.00 to $600.00 and set an “outperform” rating for the company in a report on Thursday, October 30th. Melius Research upped their price objective on Microsoft from $595.00 to $625.00 in a research report on Thursday, September 25th. Finally, Royal Bank Of Canada reissued a “buy” rating on shares of Microsoft in a research report on Monday, January 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $620.79.

Microsoft Stock Performance

Shares of Microsoft stock opened at $449.06 on Thursday. The firm has a fifty day moving average of $480.62 and a two-hundred day moving average of $501.75. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.39 and a current ratio of 1.40. The stock has a market capitalization of $3.34 trillion, a price-to-earnings ratio of 31.93, a PEG ratio of 1.70 and a beta of 1.07. Microsoft has a 52 week low of $344.79 and a 52 week high of $555.45.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings data on Wednesday, October 29th. The software giant reported $4.13 EPS for the quarter, topping analysts’ consensus estimates of $3.65 by $0.48. Microsoft had a return on equity of 32.45% and a net margin of 35.71%.The business had revenue of $77.67 billion during the quarter, compared to analysts’ expectations of $75.49 billion. During the same period in the previous year, the firm earned $3.30 earnings per share. The firm’s quarterly revenue was up 18.4% compared to the same quarter last year. As a group, equities research analysts predict that Microsoft will post 13.08 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Takeshi Numoto sold 2,850 shares of the company’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $478.72, for a total value of $1,364,352.00. Following the transaction, the executive vice president owned 55,782 shares in the company, valued at approximately $26,703,959.04. This represents a 4.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of the firm’s stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the sale, the chief executive officer owned 129,349 shares of the company’s stock, valued at $63,577,620.48. This trade represents a 8.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 54,100 shares of company stock valued at $27,598,872 over the last ninety days. 0.03% of the stock is currently owned by company insiders.

Institutional Trading of Microsoft

Several hedge funds have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC grew its position in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after purchasing an additional 20 shares in the last quarter. Westend Capital Management LLC boosted its stake in shares of Microsoft by 386.7% in the second quarter. Westend Capital Management LLC now owns 73 shares of the software giant’s stock valued at $36,000 after buying an additional 58 shares during the period. Bayforest Capital Ltd bought a new position in Microsoft during the 3rd quarter worth $38,000. LSV Asset Management bought a new position in Microsoft during the 4th quarter worth $44,000. Finally, Sellwood Investment Partners LLC acquired a new position in Microsoft in the 3rd quarter valued at $49,000. 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: Large brand & technology deal with Mercedes-AMG PETRONAS F1 — Microsoft will integrate Azure and AI tools with the team in a multi‑year sponsorship, a visible commercial showcase that supports enterprise AI positioning and marketing momentum. Mercedes reveal images of 2026 F1 car, announce Microsoft deal
• Positive Sentiment: U.S. defense contract: Microsoft won a $170.44M Air Force Cloud One task order for Azure services through Dec. 2028 — small relative to MSFT’s scale but a recurring win that validates Azure in government cloud. Microsoft (MSFT) Stock: Air Force Awards $170 Million Cloud One Contract
• Neutral Sentiment: Wall Street remains mixed but not uniformly negative: some firms trimmed targets yet kept Buy ratings (TD Cowen, Citigroup, Goldman maintained a high PT), leaving analyst coverage a mix of supportive and cautious views ahead of earnings. All Eyes on Microsoft Stock Ahead of Earnings Next Week; Here’s What Wall Street Expects
• Neutral Sentiment: Market is focused on the Jan. 28 earnings date — expectations are high for AI/cloud growth but the report is a near‑term catalyst that could increase volatility. Dear Microsoft Stock Fans, Mark Your Calendars for January 28
• Negative Sentiment: Analyst downgrades and lower price targets are hitting sentiment — some outlets and firms are flagging downside scenarios and trimming targets, which amplifies selling pressure amid already weaker tape. Microsoft Stock To $350?
• Negative Sentiment: Rothschild & Co Redburn cut its target and moved to Neutral — another explicit downgrade that can prompt short‑term outflows from model/quant strategies. Rothschild & Co Redburn adjusts price target on Microsoft to 450
• Negative Sentiment: Broader investor caution on AI spending and bubble talk: CEO comments and wider debate about energy costs, data‑center capacity and whether AI investment scales beyond Big Tech are weighing on confidence in further near‑term multiple expansion. Satya Nadella’s biggest AI bubble warning yet
• Negative Sentiment: Institutional moves and share supply: reports of a hedge fund trimming MSFT exposure and Microsoft (and partners) selling shares in PhonePe’s IPO add marginal selling pressure and headline noise. Cypress Funds LLC Cuts Microsoft Stake

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).