Microsoft (NASDAQ:MSFT) Trading Down 2.7% – Here’s What Happened

Microsoft Corporation (NASDAQ:MSFT)’s stock price dropped 2.7% on Friday . The company traded as low as $414.40 and last traded at $416.67. Approximately 33,880,462 shares traded hands during trading, a decline of 5% from the average daily volume of 35,843,449 shares. The stock had previously closed at $428.05.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s AI revenue run rate reportedly crossed $37 billion, reinforcing that Azure, Copilot, and other AI offerings are contributing real growth. Microsoft’s AI Revenue Run Rate Just Crossed $37 Billion. Is It the Best AI Stock to Buy Now?
• Positive Sentiment: Analysts remain constructive after Build 2026, pointing to new proprietary AI models, agent tools, Windows upgrades, and quantum progress as signs Microsoft is strengthening its enterprise AI platform. Analysts Say Buy Microsoft Stock (MSFT) after Build 2026 Reinforces AI Growth Story
• Positive Sentiment: TD Cowen and other firms reiterated bullish views, with price targets well above the current share price, suggesting Wall Street still sees upside if AI execution stays strong. Microsoft had its “buy” rating reaffirmed by TD Cowen
• Positive Sentiment: Jefferies also praised Microsoft’s model-agnostic AI strategy, saying its enterprise platform and governance tools could help it win more corporate AI workloads. Microsoft’s model-agnostic AI strategy earns praise from Jefferies

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Mizuho dropped their price target on shares of Microsoft from $620.00 to $515.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 14th. Barclays reissued an “overweight” rating on shares of Microsoft in a report on Wednesday. HSBC cut their price target on Microsoft from $593.00 to $571.00 in a research note on Thursday, April 30th. Melius Research set a $430.00 price objective on shares of Microsoft in a report on Monday, February 9th. Finally, Tigress Financial increased their target price on shares of Microsoft from $595.00 to $680.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Forty-one equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $561.20.

Microsoft Stock Performance

The company’s 50-day moving average is $406.72 and its two-hundred day moving average is $432.18. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The company has a market capitalization of $3.10 trillion, a P/E ratio of 24.80, a PEG ratio of 1.54 and a beta of 1.11.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. The company had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The firm’s revenue was up 18.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.46 EPS. Equities analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current fiscal year.

Microsoft Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, May 21st. Microsoft’s dividend payout ratio is 21.67%.

Insider Buying and Selling at Microsoft

In related news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares of the company’s stock, valued at $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer directly owned 110,477 shares in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of MSFT. Longfellow Investment Management Co. LLC increased its position in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares during the period. Bernzott Capital Advisors purchased a new stake in shares of Microsoft in the 4th quarter worth about $34,000. Timmons Wealth Management LLC bought a new stake in shares of Microsoft during the 4th quarter valued at about $36,000. Fairway Wealth LLC boosted its stake in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after purchasing an additional 66 shares in the last quarter. Finally, Sellwood Investment Partners LLC bought a new position in Microsoft in the third quarter worth about $49,000. Hedge funds and other institutional investors 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).