Microsoft Corporation (NASDAQ:MSFT) Sees Significant Increase in Short Interest

Posted by Paula Ricardo on Mar 16th, 2026

Microsoft Corporation (NASDAQ:MSFT – Get Free Report) was the recipient of a significant increase in short interest in February. As of February 27th, there was short interest totaling 74,347,979 shares, an increase of 32.5% from the February 12th total of 56,124,540 shares. Approximately 1.0% of the company’s stock are sold short. Based on an average daily trading volume, of 32,148,149 shares, the short-interest ratio is currently 2.3 days. Based on an average daily trading volume, of 32,148,149 shares, the short-interest ratio is currently 2.3 days. Approximately 1.0% of the company’s stock are sold short.

Microsoft Stock Performance

Shares of NASDAQ MSFT traded up $4.40 during midday trading on Monday, hitting $399.95. 27,693,411 shares of the company’s stock traded hands, compared to its average volume of 36,661,477. Microsoft has a 1 year low of $344.79 and a 1 year high of $555.45. The stock has a market capitalization of $2.97 trillion, a price-to-earnings ratio of 25.01, a price-to-earnings-growth ratio of 1.55 and a beta of 1.10. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.38 and a current ratio of 1.39. The firm has a fifty day moving average of $427.46 and a 200 day moving average of $475.81.

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

Microsoft Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s payout ratio is presently 22.76%.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Microsoft joins a new coalition to fight online scams, reinforcing trust in its consumer and enterprise services and supporting brand value around its platforms and security offerings. Microsoft Stock (NASDAQ:MSFT) Tips Up With New Scam-Fighting Coalition
Positive Sentiment: Analyst and market commentaries (including calls that MSFT is a long‑term AI winner) are supporting buying interest and framing recent weakness as a buying opportunity. Microsoft Is ‘Long-Term Winner’ In AI Arms Race—Sell-Off Is Buying ‘Opportunity,’ Says Don Nesbitt
Positive Sentiment: Ongoing AI monetization (Copilot and other subscription moves) is cited as a revenue-growth catalyst that could lift recurring revenue and margins over time. Will a New $99 AI Subscription Move the Needle for Microsoft Stock?
Neutral Sentiment: Comparative coverage of MSFT vs. other AI incumbents (Alphabet, Salesforce) keeps Microsoft in the core AI/cloud debate — supportive for long-term positioning but does not change near-term fundamentals. Microsoft (MSFT) vs Alphabet (GOOGL): Which Tech Giant Wins the AI Battle?
Neutral Sentiment: Wall Street consensus remains generally bullish (consensus “Moderate Buy”), which supports sentiment but leaves valuation and execution as key watchpoints. Microsoft Corporation (NASDAQ:MSFT) Receives Consensus Recommendation of “Moderate Buy” from Analysts
Negative Sentiment: Research flags rising off‑balance-sheet data center leases across hyperscalers (including Microsoft) — a large capital/lease burden that could pressure free cash flow if AI revenue growth slows. Data Center Leases: Is Spending Mindful Of Revenues?
Negative Sentiment: Some sell-side and independent pieces raise macro, competition and geopolitical/war-related risks and note isolated selling by big investors, which can create short-term pressure and raise volatility. Microsoft: Macrohard, Competition, And War-Related Fears (Rating Downgrade)
Negative Sentiment: Notable fund-level selling (e.g., reports of Peter Thiel’s fund trimming MSFT) is being cited by some outlets — a watch item for near-term flows and sentiment. Palantir Billionaire Peter Thiel Sells 3 AI Stocks in a $74 Million Warning to Wall Street.

Insider Buying and Selling

In other Microsoft news, Director John W. Stanton acquired 5,000 shares of the stock in a transaction that occurred on Wednesday, February 18th. The shares were acquired at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the transaction, the director owned 83,905 shares of the company’s stock, valued at $33,339,651.75. The trade was a 6.34% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of the stock in a transaction on Friday, March 6th. The shares were sold at an average price of $409.52, for a total value of $5,045,695.92. Following the sale, the executive vice president owned 137,933 shares in the company, valued at approximately $56,486,322.16. This represents a 8.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

A number of institutional investors have recently bought and sold shares of MSFT. WFA Asset Management Corp raised its position in shares of Microsoft by 27.0% during the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock valued at $427,000 after purchasing an additional 216 shares during the period. Ironwood Wealth Management LLC. lifted its stake in shares of Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after buying an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC boosted its holdings in Microsoft by 410.4% in the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after buying an additional 2,138 shares during the period. Wealth Group Ltd. increased its stake in Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after buying an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC increased its stake in Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after buying an additional 96 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

Analyst Ratings Changes

MSFT has been the topic of a number of research analyst reports. Morgan Stanley reaffirmed an “overweight” rating on shares of Microsoft in a report on Thursday, January 29th. Sanford C. Bernstein reissued an “outperform” rating and issued a $641.00 target price (down from $645.00) on shares of Microsoft in a research report on Thursday, January 29th. BNP Paribas Exane upped their target price on shares of Microsoft from $632.00 to $659.00 and gave the company an “outperform” rating in a research note on Tuesday, January 27th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $590.00 price target on shares of Microsoft in a research note on Thursday, January 29th. Finally, Robert W. Baird set a $540.00 price objective on shares of Microsoft and gave the company an “outperform” rating in a research report on Thursday, January 29th. Two equities research analysts have rated the stock with a Strong Buy rating, forty have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $591.95.

View Our Latest Analysis on MSFT

Microsoft Company Profile

(Get Free Report)

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).