Microsoft (NASDAQ:MSFT) Stock Price Up 2.3% – What’s Next?

Microsoft Corporation (NASDAQ:MSFT) shares rose 2.3% on Monday . The stock traded as high as $466.32 and last traded at $460.52. Approximately 52,345,554 shares were traded during trading, an increase of 46% from the average daily volume of 35,874,113 shares. The stock had previously closed at $450.24.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft used Build 2026 to unveil new in-house AI models, including MAI-Code-1 and MAI-Thinking-1, which could reduce reliance on OpenAI and Anthropic while lowering costs for developers and strengthening Microsoft’s AI platform strategy.
• Positive Sentiment: The company introduced Microsoft Scout and other agentic AI tools for Microsoft 365, reinforcing its push to monetize AI across productivity software and enterprise workflows. Microsoft launches Scout, an OpenClaw-inspired personal assistant
• Positive Sentiment: Microsoft’s partnership with Nvidia on AI PCs and agentic computing drew bullish attention, as investors see a potential catalyst for Windows hardware demand and the broader Microsoft ecosystem. Microsoft reveals new quantum chip made with AI, says it will have systems by 2029
• Positive Sentiment: Microsoft also highlighted progress on its Majorana 2 quantum chip, adding a long-term innovation story that supports the stock’s premium valuation.
• Positive Sentiment: Several analyst and media reports remained constructive, citing strong Azure upside, continued AI demand, and favorable long-term valuation arguments for MSFT.
• Neutral Sentiment: Build 2026 generated a lot of attention, but Microsoft did not fully deliver the rumored Copilot “Super App,” which may have tempered some investor expectations.
• Negative Sentiment: Microsoft CEO Judson Althoff disclosed the sale of 15,500 shares worth about $7.1 million, which can weigh on sentiment even though he still owns a large stake.
• Negative Sentiment: Some coverage pointed to profit-taking, elevated AI spending, and margin pressure as reasons the stock has lagged despite the upbeat product announcements.

Wall Street Analysts Forecast Growth

MSFT has been the subject of several analyst reports. Scotiabank lowered their target price on shares of Microsoft from $600.00 to $550.00 and set an “outperform” rating for the company in a report on Thursday, April 30th. UBS Group reiterated a “buy” rating on shares of Microsoft in a report on Friday, April 24th. Citigroup initiated coverage on shares of Microsoft in a report on Monday. They issued a “market outperform” rating for the company. Melius Research set a $430.00 target price on shares of Microsoft in a report on Monday, February 9th. Finally, Raymond James Financial downgraded shares of Microsoft from a “market perform” rating to a “market perform” rating in a report on Tuesday, May 5th. Forty equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $561.20.

Microsoft Price Performance

The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The stock has a market cap of $3.28 trillion, a P/E ratio of 26.27, a price-to-earnings-growth ratio of 1.66 and a beta of 1.11. The business’s 50-day simple moving average is $403.52 and its two-hundred day simple moving average is $433.78.

Microsoft (NASDAQ:MSFT) last issued its earnings results 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. The firm had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The company’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter last year, the business earned $3.46 earnings per share. Sell-side analysts expect that Microsoft Corporation will post 16.76 EPS for the current year.

Microsoft Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Thursday, May 21st. Microsoft’s dividend payout ratio (DPR) is currently 21.67%.

Insiders Place Their Bets

In other Microsoft news, EVP Kathleen T. Hogan sold 12,321 shares of the stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of the transaction, the executive vice president owned 137,933 shares in the company, valued at $56,486,322.16. This trade represents a 8.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 29,083 shares of company stock worth $12,710,152 over the last quarter. 0.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microsoft

A number of large investors have recently modified their holdings of the company. BLVD Private Wealth LLC boosted its position in shares of Microsoft by 0.6% in the third quarter. BLVD Private Wealth LLC now owns 3,169 shares of the software giant’s stock valued at $1,641,000 after acquiring an additional 19 shares during the period. Magnolia Capital Management Ltd. boosted its position in shares of Microsoft by 0.3% in the third quarter. Magnolia Capital Management Ltd. now owns 6,509 shares of the software giant’s stock valued at $3,371,000 after acquiring an additional 20 shares during the period. ARK & TLK Investments LLC boosted its position in shares of Microsoft by 1.0% in the third quarter. ARK & TLK Investments LLC now owns 1,935 shares of the software giant’s stock valued at $1,002,000 after acquiring an additional 20 shares during the period. Rochester Wealth Strategies LLC boosted its position in shares of Microsoft by 2.9% in the third quarter. Rochester Wealth Strategies LLC now owns 700 shares of the software giant’s stock valued at $363,000 after acquiring an additional 20 shares during the period. Finally, Longfellow Investment Management Co. LLC boosted its position in shares of Microsoft by 51.3% in the second 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 during the period. 71.13% of the stock is currently owned by institutional investors.

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).