Microsoft (NASDAQ:MSFT) Shares Up 3% – Here’s What Happened

Microsoft Corporation (NASDAQ:MSFT)’s stock price rose 3% on Wednesday . The company traded as high as $388.83 and last traded at $384.28. Approximately 46,814,788 shares changed hands during mid-day trading, an increase of 23% from the average daily volume of 37,974,023 shares. The stock had previously closed at $373.02.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Haleon announced a new five-year partnership to expand its use of Microsoft’s AI, cloud, and data tools across global operations, reinforcing Microsoft’s enterprise AI momentum and potential future Azure demand. Why is Microsoft stock gaining 4% today?
• Positive Sentiment: A Jefferies CIO survey said Azure is widening its lead over AWS among U.S. chief information officers, supporting the case that Microsoft is taking share in cloud infrastructure. Microsoft (MSFT) Azure Widens Lead over AWS in Jefferies CIO Survey
• Positive Sentiment: JMP Securities reaffirmed a bullish view on Microsoft after the Copilot Cowork launch, while other analysts continued to highlight Microsoft as an AI leader with upside potential. JMP Securities Reaffirms Bullish Outlook on Microsoft Corporation (MSFT) Following Copilot Cowork Launch
• Neutral Sentiment: Microsoft is reportedly preparing another round of layoffs affecting less than 2.5% of its workforce, including parts of Xbox, sales, and consulting; investors may view this as cost discipline, but it also signals ongoing pressure from heavy AI infrastructure spending. Microsoft plans another round of job cuts, impacting thousands of roles
• Negative Sentiment: Microsoft is facing fresh securities-class-action headlines tied to alleged misstatements about Copilot and Azure functionality, adding legal overhang even if these claims are not yet proven. Bronstein, Gewirtz & Grossman LLC Urges Microsoft Corporation Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Several reports highlighted valuation concerns and recent weakness, with some commentators noting Microsoft’s premium P/E and warning that AI spending is weighing on sentiment and margins. Microsoft Trades at a Premium P/E: Buy, Sell or Hold the Stock Now?

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on MSFT shares. Rothschild & Co Redburn decreased their price objective on shares of Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Wedbush reiterated an “outperform” rating and issued a $575.00 target price on shares of Microsoft in a research note on Wednesday, May 13th. Raymond James Financial downgraded shares of Microsoft from a “market perform” rating to a “market perform” rating in a research report on Tuesday, May 5th. Citigroup started coverage on shares of Microsoft in a research note on Monday, June 1st. They set a “market outperform” rating for the company. Finally, Sanford C. Bernstein lifted their price target on shares of Microsoft from $641.00 to $646.00 and gave the stock an “outperform” rating in a report on Thursday, April 30th. Forty-one research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $560.86.

Microsoft Stock Performance

The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The firm has a market capitalization of $2.85 trillion, a PE ratio of 22.87, a P/E/G ratio of 1.33 and a beta of 1.11. The company’s fifty day simple moving average is $408.34 and its 200 day simple moving average is $419.37.

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

Microsoft Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is currently 21.67%.

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at 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 value of $7,145,345.00. Following the completion of the transaction, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 23,762 shares of company stock valued at $10,508,361 in the last 90 days. 0.03% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Longfellow Investment Management Co. LLC boosted its holdings in Microsoft by 51.3% in 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 fourth quarter worth $34,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft in the fourth quarter worth $36,000. Fairway Wealth LLC boosted its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after buying an additional 66 shares during the period. Finally, University of Illinois Foundation bought a new stake in Microsoft during the second quarter valued at $50,000. Institutional investors own 71.13% of the company’s stock.

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).