Microsoft (NASDAQ:MSFT) Shares Up 1.5% – Here’s Why

Shares of Microsoft Corporation (NASDAQ:MSFT) were up 1.5% during trading 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 daily volume of 37,556,191 shares. The stock had previously closed at $385.10.

Key Microsoft News

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 Upgrades and Downgrades

Several research firms recently issued reports on MSFT. HSBC reduced their price objective on shares of Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Stifel Nicolaus reduced their price target on Microsoft from $415.00 to $400.00 and set a “hold” rating for the company in a research report on Thursday, June 25th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Mizuho lowered their price objective on Microsoft from $620.00 to $515.00 and set an “outperform” rating on the stock in a report on Tuesday, April 14th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Forty-one investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, Microsoft presently has a consensus rating of “Moderate Buy” and an average target price of $559.84.

Microsoft Stock Up 1.6%

The business has a 50 day moving average price of $402.33 and a 200 day moving average price of $414.08. The firm has a market capitalization of $2.91 trillion, a P/E ratio of 23.29, a price-to-earnings-growth ratio of 1.21 and a beta of 1.13. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS 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 company had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. During the same period in the previous year, the company earned $3.46 earnings per share. The company’s quarterly revenue was up 18.3% compared to the same quarter last year. On average, analysts predict that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

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

Insider Activity

In related news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction dated 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 sale, the executive vice president directly owned 47,468 shares in the company, valued at approximately $19,122,009.12. This trade represents a 8.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 23,762 shares of company stock valued at $10,508,361. Insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in shares of Microsoft by 2.3% in the 4th quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant’s stock valued at $347,211,391,000 after purchasing an additional 15,955,898 shares during the period. State Street Corp grew its position in Microsoft by 2.1% in the fourth quarter. State Street Corp now owns 306,150,608 shares of the software giant’s stock valued at $148,060,557,000 after acquiring an additional 6,388,930 shares during the period. Geode Capital Management LLC boosted its stake in shares of Microsoft by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant’s stock valued at $88,056,019,000 after purchasing an additional 1,911,142 shares in the last quarter. Morgan Stanley increased its position in shares of Microsoft by 0.8% during the 4th quarter. Morgan Stanley now owns 121,220,561 shares of the software giant’s stock worth $58,624,690,000 after purchasing an additional 980,439 shares in the last quarter. Finally, Norges Bank acquired a new position in Microsoft in the fourth quarter valued at about $50,664,631,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

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).