Microsoft (NASDAQ:MSFT) Rating Increased to Strong-Buy at Phillip Securities

Phillip Securities upgraded shares of Microsoft (NASDAQ:MSFT) from a moderate buy rating to a strong-buy rating in a research note released on Sunday morning,Zacks.com reports.

Several other research firms have also issued reports on MSFT. Jefferies Financial Group reaffirmed a “buy” rating on shares of Microsoft in a report on Thursday, January 22nd. Rothschild Redb lowered Microsoft from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 18th. Oppenheimer reissued an “outperform” rating on shares of Microsoft in a research report on Thursday. BMO Capital Markets cut their price target on Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a research report on Thursday, January 29th. Finally, DA Davidson reaffirmed a “buy” rating and set a $650.00 price objective on shares of Microsoft in a research note on Thursday, January 29th. Two analysts have rated the stock with a Strong Buy rating, forty have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $597.73.

Microsoft Stock Performance

MSFT stock opened at $423.37 on Friday. Microsoft has a 1-year low of $344.79 and a 1-year high of $555.45. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. The company has a market capitalization of $3.14 trillion, a P/E ratio of 26.48, a PEG ratio of 1.69 and a beta of 1.07. The business has a 50-day moving average price of $474.82 and a 200 day moving average price of $499.00.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.86 by $0.28. The company had revenue of $81.27 billion for the quarter, compared to analyst estimates of $80.28 billion. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. Microsoft’s revenue was up 16.7% compared to the same quarter last year. During the same period last year, the company posted $3.23 earnings per share. As a group, equities research analysts forecast that Microsoft will post 13.08 EPS for the current fiscal year.

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, February 19th. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. Microsoft’s payout ratio is presently 22.76%.

Insider Activity at Microsoft

In related news, EVP Takeshi Numoto sold 2,850 shares of the company’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $478.72, for a total value of $1,364,352.00. Following the completion of the sale, the executive vice president owned 55,782 shares of the company’s stock, valued at approximately $26,703,959.04. This represents a 4.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Judson Althoff sold 12,750 shares of the stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the completion of the sale, the chief executive officer directly owned 129,349 shares of the company’s stock, valued at approximately $63,577,620.48. This trade represents a 8.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Longfellow Investment Management Co. LLC boosted its position in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Bayforest Capital Ltd acquired a new position in Microsoft in the third quarter valued at $38,000. Fairway Wealth LLC lifted its holdings 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 last quarter. LSV Asset Management purchased a new stake in Microsoft in the fourth quarter valued at approximately $44,000. Finally, Sellwood Investment Partners LLC purchased a new stake in Microsoft in the third quarter valued at approximately $49,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts remain bullish — several firms continue to rate MSFT a buy with lofty price targets (median ~ $600), arguing the pullback may be an overreaction and offering upside from current levels. Robinhood’s Top 10 Stocks: These 2 Stocks Are the Best Buys, According to Wall Street
• Positive Sentiment: Product/technology push: Microsoft highlighted growing AI capabilities and a new in‑house “Maia” chip for cloud AI workloads — a strategic asset for Azure and enterprise AI monetization. Microsoft Highlights Its Growing AI Capabilities with Maia Chip Launch
• Neutral Sentiment: Long‑term bull case intact: multiple pieces argue MSFT remains a multi‑year AI and cloud winner despite the sell‑off, so the current weakness may offer a buy opportunity for long‑term investors. 2 Monster Stocks to Hold for the Next 20 Years — Including Microsoft
• Negative Sentiment: Earnings reaction: Investors focused on slowing Azure growth and a guidance tone that implies moderation, plus record ~$37.5B AI capex, which triggered a large post‑earnings sell‑off. That combination explains heavy selling pressure. Microsoft Stock (MSFT) Opinions on Earnings Reaction
• Negative Sentiment: Capital spending vs. near‑term returns: Reports note soaring capex and cloud revenue that missed expectations, spotlighting margin and free‑cash‑flow risk if growth doesn’t accelerate. Capital expenditures soar, cloud revenue falls short of expectations
• Negative Sentiment: Regulatory/market risk: Moves in Europe (e.g., France replacing Teams/Zoom) and warnings about a “kill‑switch” or digital‑sovereignty push raise the risk of lost public‑sector business and greater fragmentation in cloud and collaboration markets. France ditches Zoom and Teams for homegrown system

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).