Microsoft (NASDAQ:MSFT) Price Target Raised to $625.00

Microsoft (NASDAQ:MSFT) had its target price hoisted by Citizens Jmp from $550.00 to $625.00 in a research note released on Thursday morning,Benzinga reports. The firm currently has a market outperform rating on the software giant’s stock.

A number of other brokerages also recently issued reports on MSFT. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a report on Friday, July 24th. Bank of America lifted their price objective on Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. CLSA reissued an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. Barclays boosted their target price on Microsoft from $512.00 to $600.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 13th. Finally, William Blair started coverage on shares of Microsoft in a research note on Monday, October 5th. They set an “outperform” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, forty-five have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $609.54.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $521.91 on Thursday. The firm has a market cap of $3.88 trillion, a P/E ratio of 27.24, a PEG ratio of 1.64 and a beta of 1.10. Microsoft has a twelve month low of $349.20 and a twelve month high of $551.15. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.07. The company has a 50 day moving average of $512.91 and a 200 day moving average of $438.43.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.17. The business had revenue of $92.28 billion for the quarter, compared to analysts’ expectations of $90.62 billion. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The firm’s quarterly revenue was up 18.8% on a year-over-year basis. During the same period in the prior year, the firm posted $4.13 EPS. As a group, research analysts expect that Microsoft will post 19.79 EPS for the current fiscal year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is currently 19.00%.

Insider Buying and Selling at Microsoft

In related news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Satya Nadella sold 86,525 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 150,314 shares of company stock worth $75,404,992 over the last quarter. Company insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Pathway Financial Advisers LLC lifted its position in Microsoft by 7.2% during the 3rd quarter. Pathway Financial Advisers LLC now owns 14,480 shares of the software giant’s stock worth $7,427,000 after acquiring an additional 968 shares during the period. Arrien Investments Inc. increased its holdings in shares of Microsoft by 27.0% in the third quarter. Arrien Investments Inc. now owns 895 shares of the software giant’s stock valued at $459,000 after purchasing an additional 190 shares during the period. Jacksonville Wealth Management LLC increased its holdings in shares of Microsoft by 5.7% in the third quarter. Jacksonville Wealth Management LLC now owns 5,280 shares of the software giant’s stock valued at $2,708,000 after purchasing an additional 283 shares during the period. Sageworth Trust Co lifted its holdings in shares of Microsoft by 11.5% during the third quarter. Sageworth Trust Co now owns 2,907 shares of the software giant’s stock worth $1,491,000 after purchasing an additional 300 shares during the period. Finally, DeLarme Wealth Management Inc. grew its position in Microsoft by 7.3% in the 3rd quarter. DeLarme Wealth Management Inc. now owns 2,111 shares of the software giant’s stock valued at $1,083,000 after buying an additional 144 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft delivered a strong fiscal first quarter, with revenue of $92.28 billion and EPS of $4.89, both above expectations. Azure revenue surged 48%, while Microsoft Cloud revenue rose 30%, reinforcing the view that AI demand is translating into meaningful cloud growth. Microsoft Earnings Expose a Growing Divide in the Magnificent 7 AI Trade
• Positive Sentiment: Management issued second-quarter revenue guidance of $96.0 billion to $97.1 billion, above the $95.7 billion consensus estimate. Analysts responded with multiple price-target increases, including targets of $630 to $680, and Wolfe Research upgraded the stock to “strong buy.”
• Positive Sentiment: Microsoft’s strong cash generation and diversified enterprise business continue to distinguish it from rivals facing sharper cash-flow concerns. Analysts argue that Azure, Copilot, AI agents and Microsoft’s security products provide several ways to monetize AI. The expanded Estée Lauder partnership, which will extend Copilot to more than 14,000 employees, offers another example of enterprise adoption. Estée Lauder and Microsoft Strategic Partnership
• Neutral Sentiment: Microsoft’s voluntary exit offer for approximately 60,000 employees may improve productivity and redirect resources toward AI, but it also highlights a significant restructuring as the company shifts toward more automated, equipment-intensive operations. Microsoft’s 60,000-Person Buyout Offer
• Negative Sentiment: Investors remain concerned about Microsoft’s capital intensity. The company plans roughly $170 billion of AI-related capital spending, while also arranging a $25 billion bond sale—the first major U.S. debt offering since 2017—to fund its buildout. Rising borrowing costs increase scrutiny of future AI returns. Microsoft Plans to Raise $25 Billion in Debt
• Negative Sentiment: Quarterly capital spending was below analyst expectations because third-party AI-chip and data-center capacity was delayed, pushing some capacity into the first half of 2027. While management described this as a supply issue rather than weaker demand, the miss hurt AI infrastructure suppliers and revived concerns about the pace of expansion.
• Negative Sentiment: Microsoft’s cloud gross margin is reportedly narrowing as chip, power, data-center and labor costs rise. With the Nasdaq 100 down sharply during October amid fears of an AI spending bubble, investors are demanding proof that Microsoft’s large backlog will convert into profitable cash flow—not merely future revenue.

Microsoft Company Profile

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.