Microsoft (NASDAQ:MSFT) Upgraded to “Buy” at Phillip Securities

Microsoft (NASDAQ:MSFT) was upgraded by stock analysts at Phillip Securities to a “buy” rating in a research report issued to clients and investors on Wednesday,MarketScreener reports. The brokerage currently has a $485.00 price objective on the software giant’s stock. Phillip Securities’ target price would indicate a potential upside of 18.94% from the stock’s current price.

A number of other equities research analysts also recently issued reports on MSFT. China Renaissance lowered their target price on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating for the company in a report on Monday, May 4th. Royal Bank Of Canada restated a “buy” rating on shares of Microsoft in a report on Monday, April 27th. The Goldman Sachs Group reiterated a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. BNP Paribas Exane decreased their target price on Microsoft from $556.00 to $555.00 and set an “outperform” rating for the company in a research report on Friday, May 1st. Finally, Daiwa Securities Group decreased their price objective on shares of Microsoft from $630.00 to $600.00 and set a “buy” rating for the company in a report on Wednesday, February 4th. Thirty-nine analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $560.88.

Microsoft Stock Performance

Shares of MSFT opened at $407.77 on Wednesday. Microsoft has a 1 year low of $356.28 and a 1 year high of $555.45. The company’s 50 day simple moving average is $397.60 and its 200 day simple moving average is $443.14. The company has a market capitalization of $3.03 trillion, a price-to-earnings ratio of 24.27, a PEG ratio of 1.49 and a beta of 1.10. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28.

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, beating the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same period in the previous year, the firm posted $3.46 EPS. Microsoft’s revenue was up 18.3% on a year-over-year basis. On average, sell-side analysts predict that Microsoft will post 16.76 EPS for the current year.

Insider Activity

In other news, EVP Kathleen T. Hogan sold 12,321 shares of the company’s stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of the transaction, the executive vice president directly owned 137,933 shares of the company’s stock, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John W. Stanton bought 5,000 shares of the business’s stock in a transaction on Wednesday, February 18th. The stock was purchased at an average price 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 $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.03% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. BLVD Private Wealth LLC raised its holdings in shares of Microsoft by 0.6% in the 3rd quarter. BLVD Private Wealth LLC now owns 3,169 shares of the software giant’s stock worth $1,641,000 after purchasing an additional 19 shares in the last quarter. Longfellow Investment Management Co. LLC boosted its holdings in Microsoft by 51.3% during the second 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 in the last quarter. Magnolia Capital Management Ltd. grew its position in Microsoft by 0.3% in the third quarter. Magnolia Capital Management Ltd. now owns 6,509 shares of the software giant’s stock worth $3,371,000 after buying an additional 20 shares during the last quarter. ARK & TLK Investments LLC grew its position in Microsoft by 1.0% in the third quarter. ARK & TLK Investments LLC now owns 1,935 shares of the software giant’s stock worth $1,002,000 after buying an additional 20 shares during the last quarter. Finally, Rochester Wealth Strategies LLC increased its holdings in shares of Microsoft by 2.9% in the third quarter. Rochester Wealth Strategies LLC now owns 700 shares of the software giant’s stock valued at $363,000 after buying an additional 20 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is still being viewed as a long-term AI winner, with several bullish articles pointing to durable cloud demand, strong fundamentals, and continued upside potential if AI monetization keeps improving.
• Positive Sentiment: OpenAI-related developments may be constructive for Microsoft: reports say OpenAI agreed to cap revenue-sharing payments to Microsoft at $38 billion through 2030, a move that could clarify economics and support OpenAI’s IPO path while preserving the partnership. OpenAI to cap Microsoft revenue-sharing at $38 billion, The Information reports
• Positive Sentiment: Satya Nadella’s testimony in the Musk v. OpenAI case reinforced Microsoft’s central role in AI and its early backing of OpenAI, which some investors may see as validating Microsoft’s strategic position in the AI ecosystem.
• Neutral Sentiment: Multiple market commentary pieces discussed Microsoft as a core mega-cap name and highlighted options activity, valuation arguments, and broader AI trade positioning, but these were mostly opinion-driven and not company-specific catalysts.
• Negative Sentiment: Some investors are questioning whether Microsoft’s massive AI spending is pressuring cash flow too much, with articles warning that the AI boom is real but that capex and cash generation trade-offs could weigh on the stock.
• Negative Sentiment: Coverage of the OpenAI lawsuit also revived concerns that Microsoft has too much exposure to OpenAI’s governance and legal disputes, while several hedge funds reportedly trimmed MSFT stakes, adding to cautious sentiment. Microsoft AI Reliance Questioned As TCI Exits And OpenAI Terms Emerge
• Negative Sentiment: One report said Microsoft’s Kenyan data center project has been delayed due to payment demands, which could be seen as a reminder that infrastructure expansion is not always smooth. Microsoft’s Kenyan data center delayed on payment demands: report

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).