Microsoft (NASDAQ:MSFT) Stock Price Up 1.5% – Still a Buy?

Shares of Microsoft Corporation (NASDAQ:MSFT) shot up 1.5% on Monday . The stock traded as high as $393.65 and last traded at $390.99. Approximately 28,748,430 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 37,556,191 shares. The stock had previously closed at $385.10.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft CEO Satya Nadella’s recent comments on “The Reverse Information Paradox” highlighted a new AI theme: companies need tools to protect proprietary knowledge as they adopt AI, reinforcing Microsoft’s role in enterprise AI and security. Microsoft’s CEO Lays Out the Next Massive AI Trade
• Positive Sentiment: Several articles point to Microsoft as attractively valued despite heavy AI capex, with analysts and commentators citing strong Azure growth, a large commercial backlog, and potential upside ahead of earnings later this month. Should You Buy Microsoft Stock Before July 29?
• Positive Sentiment: Investor sentiment also got a lift from reports that institutions are adding to Microsoft positions and that Microsoft remains a favored large-cap tech name among analysts ahead of earnings. QV Investors builds stakes in Microsoft, Constellation Software
• Neutral Sentiment: Microsoft is also being discussed as a key beneficiary of enterprise AI partnerships, including integrations that could deepen Copilot and cloud adoption over time. Partner Integrations Becoming Bigger Part of Enterprise AI at Microsoft, Microsoft Stock Gains
• Negative Sentiment: Multiple law firms issued class-action reminders and deadline alerts tied to alleged Copilot-related misrepresentations, keeping securities-fraud concerns in focus and weighing on sentiment. Deadline Alert: Microsoft Corporation (MSFT) Shareholders…

Analyst Ratings Changes

Several brokerages recently commented on MSFT. Weiss Ratings reissued a “hold (c)” rating on shares of Microsoft in a report on Monday, July 6th. Raymond James Financial cut Microsoft from a “market perform” rating to a “market perform” rating in a research report on Tuesday, May 5th. Bank of America initiated coverage on Microsoft in a research note on Tuesday, March 24th. They issued a “buy” rating and a $500.00 price objective on the stock. Stifel Nicolaus decreased their target price on Microsoft from $415.00 to $400.00 and set a “hold” rating for the company in a research note on Thursday, June 25th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. Forty-one equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $559.84.

Microsoft Stock Performance

The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The firm has a market capitalization of $2.91 trillion, a PE ratio of 23.29, a P/E/G ratio of 1.21 and a beta of 1.13. The firm has a fifty day moving average price of $402.33 and a 200 day moving average price of $414.08.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results 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 return on equity of 31.94% and a net margin of 39.34%.The firm had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. During the same quarter last year, the business posted $3.46 EPS. Microsoft’s revenue was up 18.3% on a year-over-year basis. Research analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Announces Dividend

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

Insiders Place Their Bets

In other news, EVP Takeshi Numoto sold 4,500 shares of the firm’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of the sale, the executive vice president owned 47,468 shares of the company’s stock, valued at $19,122,009.12. This trade represents a 8.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction on Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 23,762 shares of company stock worth $10,508,361. Corporate insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

A number of large investors have recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC boosted its position in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares during the last quarter. Bernzott Capital Advisors purchased a new stake in shares of Microsoft during the 4th quarter worth about $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft during the 4th quarter valued at about $36,000. Fairway Wealth LLC lifted its holdings in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after buying an additional 66 shares during the last quarter. Finally, LSV Asset Management bought a new stake in shares of Microsoft in the 4th quarter valued at approximately $44,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

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).