Microsoft (NASDAQ:MSFT) Stock Price Up 2.2% – Time to Buy?

Microsoft Corporation (NASDAQ:MSFT) shares shot up 2.2% on Monday . The stock traded as high as $403.18 and last traded at $402.29. Approximately 27,699,570 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 37,420,805 shares. The stock had previously closed at $393.82.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft announced an expanded strategic partnership with AMD to deploy AMD Helios rack-scale systems across Azure, which could strengthen Microsoft’s AI infrastructure and support future Azure inference demand. Microsoft expands AMD partnership with Helios AI infrastructure deployment on Azure
• Positive Sentiment: Several reports said Microsoft is being viewed as undervalued, with Morningstar calling it a value stock and analysts at Deutsche Bank/BofA seeing MSFT as an attractive entry point ahead of earnings, reinforcing bullish sentiment. Microsoft Is A Value Stock? Morningstar Says Yes — Here’s Why Microsoft Stock Price Offers ‘Attractive Entry Point,’ Says Deutsche Bank Ahead of Q2 Earnings
• Positive Sentiment: Investor focus is on Microsoft’s upcoming earnings, especially Azure growth, AI backlog conversion, and Microsoft 365 Copilot adoption; that keeps the AI growth narrative front and center. Microsoft earnings to spotlight Azure growth, AI spending
• Neutral Sentiment: Microsoft’s gaming division is undergoing a major restructuring, including 3,200 layoffs and four studios cut, which may improve focus but also underscores pressure to rein in costs. Exclusive: Xbox’s CEO on 3,200 layoffs, four studios cut, and her blunt warning that ‘we spread ourselves too thin’
• Neutral Sentiment: Microsoft is also facing ongoing securities class-action headlines tied to Copilot-related disclosure concerns, adding legal overhang even though these claims are not yet proven. Levi & Korsinsky Reminds Microsoft Corporation Investors of the Pending Class Action Lawsuit With a Lead Plaintiff Deadline of August 11, 2026 – MSFT
• Negative Sentiment: Some investors remain worried that Microsoft’s aggressive AI infrastructure spending is pressuring returns and margins, which could weigh on the stock if earnings commentary does not reassure the market. Microsoft (MSFT) Criticizes Anthropic Fable AI While Azure Ties Deepen

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on MSFT shares. Guggenheim restated a “buy” rating and issued a $586.00 target price on shares of Microsoft in a report on Thursday, April 30th. Wells Fargo & Company cut their target price on shares of Microsoft from $650.00 to $625.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Microsoft in a research report on Monday. The Goldman Sachs Group reissued a “buy” rating on shares of Microsoft in a research report on Thursday, April 30th. Finally, Jefferies Financial Group reissued a “buy” rating on shares of Microsoft in a research report on Monday, May 4th. Forty-two equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, Microsoft currently has an average rating of “Moderate Buy” and a consensus target price of $557.46.

Microsoft Stock Up 2.2%

The stock has a 50-day moving average of $400.28 and a 200-day moving average of $410.77. The firm has a market cap of $2.99 trillion, a price-to-earnings ratio of 23.95, a price-to-earnings-growth ratio of 1.19 and a beta of 1.13. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08.

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

Microsoft Announces Dividend

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

Insider Buying and Selling at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,500 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of the business’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 value of $519,111.08. Following the sale, the executive vice president directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 23,762 shares of company stock valued at $10,508,361. Company insiders own 0.03% of the company’s stock.

Institutional Investors Weigh In On Microsoft

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