Microsoft (NASDAQ:MSFT) Shares Down 1.9% – Here’s Why

Microsoft Corporation (NASDAQ:MSFT)’s share price was down 1.9% during mid-day trading on Wednesday . The stock traded as low as $386.96 and last traded at $390.34. 27,672,869 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 37,255,367 shares. The stock had previously closed at $397.75.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Several outlets and analysts argued that Microsoft’s recent weakness may be a buying opportunity, with Truist reaffirming a Buy rating and a $575 price target, while Bernstein kept a $646 target, signaling confidence in Azure growth and long-term AI monetization. Article Title
• Positive Sentiment: Microsoft expanded its partnership with Databricks, extending Azure-related collaboration into the 2030s and deepening integrations across Microsoft 365, Teams, and Copilot, which supports the company’s cloud and AI ecosystem story. Article Title
• Positive Sentiment: Microsoft also launched new in-house AI models that it says can cut costs versus OpenAI-based alternatives, reinforcing the view that it is building a more efficient and defensible AI stack. Article Title
• Positive Sentiment: Microsoft pressured LG to remove unwanted McAfee ads from some monitors, a small but favorable consumer-facing move that highlights Microsoft’s effort to clean up Windows 11 bloatware and improve user experience. Article Title
• Neutral Sentiment: Microsoft remains in the spotlight ahead of earnings as investors focus less on the expected beat and more on Azure growth and FY2027 capex guidance, which will determine whether AI spending is seen as a strategic advantage or a margin risk. Article Title
• Negative Sentiment: Microsoft is also dealing with multiple shareholder lawsuits and deadline reminders tied to alleged misrepresentations about Copilot’s capabilities, adding legal overhang and potentially pressuring sentiment. Article Title

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Dbs Bank dropped their price objective on Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. The Goldman Sachs Group restated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Jefferies Financial Group reiterated a “buy” rating on shares of Microsoft in a research report on Monday, May 4th. BMO Capital Markets upped their price target on Microsoft from $500.00 to $515.00 and gave the stock an “outperform” rating in a research report on Tuesday, July 7th. Finally, Wolfe Research reduced their price objective on shares of Microsoft from $570.00 to $525.00 and set an “outperform” rating for the company in a research note on Monday, July 6th. Forty-two research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and an average target price of $555.40.

Microsoft Stock Performance

The stock has a market capitalization of $2.83 trillion, a P/E ratio of 22.71, a P/E/G ratio of 1.20 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 business’s fifty day moving average price is $399.01 and its two-hundred day moving average price is $408.26.

Microsoft (NASDAQ:MSFT) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm had revenue of $82.89 billion during the quarter, compared to analysts’ expectations of $81.44 billion. During the same quarter in the previous year, the business earned $3.46 EPS. The company’s quarterly revenue was up 18.3% on a year-over-year basis. As a group, sell-side analysts forecast that Microsoft Corporation will post 16.7 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is presently 21.67%.

Insider Buying and Selling at Microsoft

In related news, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the transaction, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,500 shares of the company’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 in the company, valued at $19,122,009.12. The trade was a 8.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 23,762 shares of company stock worth $10,508,361 over the last quarter. Insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Norges Bank purchased a new position in Microsoft during the 4th quarter valued at $50,664,631,000. Auto Owners Insurance Co grew its position in Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after acquiring an additional 60,009,531 shares during the last quarter. Nuveen LLC purchased a new stake in Microsoft in the first quarter worth $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Microsoft by 500.0% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock worth $30,840,432,000 after purchasing an additional 49,618,571 shares during the last quarter. Finally, Laurel Wealth Advisors LLC lifted its position in shares of Microsoft by 49,640.3% during the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock worth $14,905,904,000 after purchasing an additional 29,906,791 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

About Microsoft

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).