Microsoft Corporation (NASDAQ:MSFT) Short Interest Down 20.6% in December

Microsoft Corporation (NASDAQ:MSFT) was the target of a significant decline in short interest in December. As of December 31st, there was short interest totaling 52,944,379 shares, a decline of 20.6% from the December 15th total of 66,675,893 shares. Approximately 0.7% of the company’s shares are sold short. Based on an average trading volume of 20,803,939 shares, the short-interest ratio is presently 2.5 days. Based on an average trading volume of 20,803,939 shares, the short-interest ratio is presently 2.5 days. Approximately 0.7% of the company’s shares are sold short.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Royal Bank Of Canada reiterated a “buy” rating on shares of Microsoft in a research note on Monday, January 5th. Robert W. Baird began coverage on Microsoft in a research note on Friday, November 14th. They set an “outperform” rating and a $600.00 price objective for the company. UBS Group reissued a “buy” rating and issued a $650.00 target price on shares of Microsoft in a research note on Thursday, October 30th. Wall Street Zen downgraded Microsoft from a “buy” rating to a “hold” rating in a report on Sunday. Finally, Raymond James Financial lowered their price objective on Microsoft from $630.00 to $600.00 and set an “outperform” rating on the stock in a research report on Thursday, October 30th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus target price of $629.46.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: OpenAI, backed by Microsoft, reached a major revenue milestone in 2025, reinforcing MSFT’s strategic AI exposure and potential upside from services tied to OpenAI. Microsoft-Backed OpenAI Hits $20B Revenue Target in 2025
• Positive Sentiment: Microsoft announced a partnership with Bristol Myers Squibb to deploy AI imaging for earlier lung‑cancer detection — a commercial win in healthcare AI that could expand Azure and services revenue over time. Bristol Myers partners with Microsoft for AI-driven lung cancer detection
• Neutral Sentiment: Microsoft added third‑party integrations (e.g., Cobalt Teams in Microsoft Marketplace), which incrementally broadens ecosystem monetization but are not material near‑term revenue drivers. Cobalt Microsoft® Teams® Integration Now Available in the Microsoft Marketplace®
• Neutral Sentiment: Investors are bracing for Microsoft’s Jan. 28 quarterly report — expectations are elevated, making the stock sensitive to any execution misses or guidance nuance. Dear Microsoft Stock Fans, Mark Your Calendars for January 28
• Negative Sentiment: Reports that Azure growth and forward guidance disappointed expectations are pressuring the stock; cloud execution concerns directly affect revenue growth and multiples. Microsoft (MSFT) Traded Lower as Its Reported Azure Cloud Growth and Forward Guidance Fell Short of Expectations
• Negative Sentiment: Analysts trimmed price targets ahead of earnings (TD Cowen cut its target while keeping a Buy) and some firms revised models for heavy AI capex — these adjustments increase near‑term downside risk despite long‑term conviction. TD Cowen Adjusts Price Target on Microsoft to 625 from 655, Maintains Buy Rating
• Negative Sentiment: Macro and geopolitical headlines sparked a broader tech selloff today, amplifying pressure on large-cap growth names including MSFT. America’s Biggest Tech Stocks Lead Tuesday’s Selloff as Trump’s Greenland Rhetoric Rattles Markets
• Negative Sentiment: CEO Satya Nadella’s Davos comments warning of an AI “bubble” if adoption doesn’t broaden, and his notes on rising AI capex and energy costs, have added caution among investors about margin pressure and industry concentration risk. Satya Nadella’s biggest AI bubble warning yet is a challenge to the Fortune 500: it’s time to reinvent the knowledge worker

Microsoft Price Performance

Shares of NASDAQ:MSFT traded down $5.07 during mid-day trading on Tuesday, reaching $454.79. The stock had a trading volume of 25,986,641 shares, compared to its average volume of 24,977,225. The business’s 50 day moving average price is $483.04 and its 200 day moving average price is $502.46. Microsoft has a 1 year low of $344.79 and a 1 year high of $555.45. The company has a market cap of $3.38 trillion, a P/E ratio of 32.35, a price-to-earnings-growth ratio of 1.72 and a beta of 1.07. The company has a current ratio of 1.40, a quick ratio of 1.39 and a debt-to-equity ratio of 0.10.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Wednesday, October 29th. The software giant reported $4.13 EPS for the quarter, beating the consensus estimate of $3.65 by $0.48. The business had revenue of $77.67 billion during the quarter, compared to analyst estimates of $75.49 billion. Microsoft had a net margin of 35.71% and a return on equity of 32.45%. Microsoft’s quarterly revenue was up 18.4% compared to the same quarter last year. During the same quarter last year, the business earned $3.30 earnings per share. Research analysts expect that Microsoft will post 13.08 EPS for the current fiscal year.

Microsoft Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, February 19th. Microsoft’s payout ratio is 25.89%.

Insider Transactions at Microsoft

In other news, insider Bradford L. Smith sold 38,500 shares of Microsoft stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $518.64, for a total transaction of $19,967,640.00. Following the sale, the insider owned 461,597 shares of the company’s stock, valued at approximately $239,402,668.08. The trade was a 7.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 2,850 shares of the stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $478.72, for a total transaction of $1,364,352.00. Following the completion of the transaction, the executive vice president directly owned 55,782 shares of the company’s stock, valued at approximately $26,703,959.04. The trade was a 4.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 54,100 shares of company stock valued at $27,598,872. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

Institutional investors and hedge funds have recently made changes to their positions in the business. Wellington Capital Management Inc. acquired a new position in shares of Microsoft in the second quarter valued at approximately $9,941,000. Sound View Wealth Advisors Group LLC grew its stake in Microsoft by 2.6% in the 2nd quarter. Sound View Wealth Advisors Group LLC now owns 94,120 shares of the software giant’s stock worth $46,816,000 after acquiring an additional 2,373 shares during the period. Bank Pictet & Cie Europe AG raised its holdings in Microsoft by 3.8% in the 2nd quarter. Bank Pictet & Cie Europe AG now owns 922,524 shares of the software giant’s stock valued at $457,119,000 after acquiring an additional 33,382 shares during the last quarter. Weaver Capital Management LLC lifted its stake in shares of Microsoft by 14.0% during the 3rd quarter. Weaver Capital Management LLC now owns 18,340 shares of the software giant’s stock worth $9,499,000 after purchasing an additional 2,247 shares during the period. Finally, Gradient Investments LLC boosted its holdings in shares of Microsoft by 4.3% during the third quarter. Gradient Investments LLC now owns 285,163 shares of the software giant’s stock worth $147,700,000 after purchasing an additional 11,770 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors.

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).