Microsoft (NASDAQ:MSFT) Given New $625.00 Price Target at Scotiabank

Microsoft (NASDAQ:MSFT) had its price objective upped by analysts at Scotiabank from $615.00 to $625.00 in a report issued on Monday, Benzinga reports. The firm presently has a “sector outperform” rating on the software giant’s stock. Scotiabank‘s price objective would suggest a potential upside of 18.79% from the stock’s previous close.

A number of other analysts have also weighed in on MSFT. UBS Group raised their price target on shares of Microsoft from $525.00 to $675.00 and gave the company a “buy” rating in a report on Thursday, October 15th. Citizens Jmp reiterated a “market outperform” rating and issued a $550.00 price target on shares of Microsoft in a report on Tuesday, September 15th. Weiss Ratings raised Microsoft from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Evercore raised shares of Microsoft from an “underperform” rating to an “outperform” rating in a research report on Monday, October 5th. Finally, Royal Bank Of Canada restated an “outperform” rating on shares of Microsoft in a report on Thursday, September 10th. Forty-three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus target price of $592.37.

Microsoft Trading Up 0.3%

Shares of Microsoft stock opened at $526.15 on Monday. Microsoft has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The firm has a market cap of $3.91 trillion, a price-to-earnings ratio of 29.40, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10. The business has a fifty day simple moving average of $508.51 and a 200-day simple moving average of $446.69. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the company earned $3.65 earnings per share. The company’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, equities analysts forecast that Microsoft will post 19.66 EPS for the current fiscal year.

Insider Buying and Selling at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction on Tuesday, September 1st. The shares were 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 owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the business’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 completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 150,314 shares of company stock valued at $75,404,992 in the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Microsoft

Large investors have recently added to or reduced their stakes in the business. State Street Corp boosted its holdings in Microsoft by 2.9% in the 2nd quarter. State Street Corp now owns 315,653,206 shares of the software giant’s stock worth $117,744,959,000 after buying an additional 8,944,917 shares during the period. Bank of America Corp DE bought a new position in shares of Microsoft during the 2nd quarter valued at $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Microsoft by 0.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant’s stock worth $24,013,297,000 after acquiring an additional 543,172 shares during the last quarter. Legal & General Group Plc bought a new stake in Microsoft in the second quarter valued at approximately $18,306,443,000. Finally, Amundi grew its holdings in shares of Microsoft by 12.0% in the second quarter. Amundi now owns 46,694,778 shares of the software giant’s stock worth $17,418,076,000 after purchasing an additional 5,019,702 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Oppenheimer raised its Microsoft price target to $625 from $570 and maintained an Outperform rating, citing strong demand ahead of earnings. The broader analyst consensus target is approximately $592.15. Oppenheimer raises Microsoft target ahead of earnings amid demand strength
• Positive Sentiment: Analysts and investors argue Microsoft is better positioned than many peers to absorb its AI infrastructure spending because of its diversified revenue base, recurring software business, growing dividend, and potentially positive free cash flow. Its Azure business is estimated at roughly $100 billion in annualized revenue and is expected to grow rapidly. Microsoft may be the only hyperscaler to stay cash-flow positive
• Positive Sentiment: Microsoft reportedly received $184.2 million in net ETF buying on October 22, indicating continued institutional demand ahead of the results. Microsoft sees net ETF buying
• Neutral Sentiment: Options traders anticipate a potentially large post-earnings move that could take MSFT back toward its recent record, underscoring elevated event risk rather than signaling a specific direction. Traders anticipate Microsoft earnings move
• Negative Sentiment: The main concern is valuation and spending: Microsoft’s large AI and data-center buildout could pressure free cash flow if Azure growth or monetization disappoints. Some analysts expect lower earnings, while bearish commentary questions whether slowing earnings growth can support a premium valuation. Microsoft’s AI spending and Azure growth
• Negative Sentiment: Microsoft’s record backlog, although supportive of future demand, also reflects substantial commitments to AI infrastructure and carries execution and capital-allocation risks compared with more diversified cloud models. Microsoft versus Oracle backlog risks

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.