Microsoft (NASDAQ:MSFT) Stock Price Up 2.8% – What’s Next?

Shares of Microsoft Corporation (NASDAQ:MSFT) traded up 2.8% during trading on Wednesday . The stock traded as high as $398.96 and last traded at $395.63. Approximately 35,847,445 shares traded hands during trading, a decline of 4% from the average daily volume of 37,525,879 shares. The stock had previously closed at $384.93.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Wall Street remained broadly constructive on Microsoft ahead of earnings, with Evercore ISI reportedly raising its price target, while Citi and Wells Fargo trimmed targets but kept bullish ratings. The mixed actions still reinforced confidence in MSFT’s long-term AI and cloud growth story. Article: Microsoft stock is rising 3% on Wednesday: here’s why
• Positive Sentiment: Microsoft and 3M announced a strategic partnership to advance AI data center infrastructure and enterprise transformation, underscoring continued demand for Azure-related buildout and AI infrastructure spending. Article: 3M and Microsoft announce strategic partnership to advance AI data center infrastructure and enterprise transformation
• Positive Sentiment: Microsoft also won attention for launching a $2.5 billion customer deployment initiative through Microsoft Frontier, aimed at helping enterprise clients deploy AI systems around their own data and workflows, which could deepen monetization of its AI platform. Article: How Microsoft (MSFT) Is Deepening Its Enterprise AI Moat With a $2.5 Billion Customer Deployment Initiative
• Positive Sentiment: Analysts and commentators highlighted Microsoft’s strong AI and cloud positioning, with some noting that the stock may be undervalued relative to its growth prospects heading into earnings. Article: Prediction: Microsoft Stock Will Skyrocket After July 29
• Neutral Sentiment: Microsoft patched a record number of security vulnerabilities, including issues across Windows and Office. While the rapid patching can be viewed positively from a security standpoint, the sheer volume of flaws also keeps attention on product security risks. Article: Microsoft patches record number of security vulnerabilities, citing its use of AI
• Negative Sentiment: Ongoing class-action lawsuits tied to alleged Copilot and AI-related misstatements remain an overhang, adding legal uncertainty even though these filings are not new operating news. Article: MSFT Investor Loss Alert: Microsoft Investors may have been Misled after Copilot Issues Lead to 10% Stock Drop
• Negative Sentiment: Recent Xbox layoffs and broader restructuring headlines continue to weigh on sentiment around Microsoft’s gaming division, though the market appears to be looking past those cuts for now. Article: Industry Expert Claims Microsoft’s (MSFT) Xbox Layoffs Include ‘Hidden Cuts’

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Dbs Bank cut their price objective on shares of Microsoft from $678.00 to $573.00 in a research note on Thursday, May 7th. New Street Research decreased their target price on shares of Microsoft from $675.00 to $600.00 and set a “buy” rating on the stock in a research report on Thursday, April 30th. China Renaissance lowered their price target on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating for the company in a research note on Monday, May 4th. Scotiabank upgraded shares of Microsoft from an “outperform” rating to an “outperform” rating in a research report on Monday, July 6th. Finally, Benchmark reaffirmed a “buy” rating and set a $525.00 price objective (up from $450.00) on shares of Microsoft in a research note on Tuesday, April 28th. Forty-one research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and an average target price of $557.96.

Microsoft Stock Up 2.8%

The firm has a market cap of $2.94 trillion, a PE ratio of 23.55, a PEG ratio of 1.19 and a beta of 1.13. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. The company’s 50-day simple moving average is $401.47 and its two-hundred day simple moving average is $412.68.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The firm had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The company’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.46 earnings per share. On average, analysts predict that Microsoft Corporation will post 16.71 earnings per share for the current fiscal year.

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.91 per share. 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 company’s stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This represents a 2.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Takeshi Numoto sold 4,500 shares of the stock in a transaction that occurred on 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 completion of the sale, the executive vice president owned 47,468 shares of the company’s stock, valued at approximately $19,122,009.12. This trade represents a 8.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 23,762 shares of company stock valued at $10,508,361 in the last 90 days. Insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC boosted 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 acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors bought a new position in shares of Microsoft in the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC purchased a new position in shares of Microsoft in the 4th quarter valued at approximately $36,000. Fairway Wealth LLC lifted its stake in shares of Microsoft by 287.0% in 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 during the period. Finally, Frankly Finances LLC bought a new stake in shares of Microsoft during the second quarter valued at approximately $35,000. Hedge funds and other 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).