Microsoft (NASDAQ:MSFT) Trading 1.9% Higher – Time to Buy?

Microsoft Corporation (NASDAQ:MSFT)’s share price shot up 1.9% during mid-day trading on Friday . The company traded as high as $401.79 and last traded at $401.14. 52,478,194 shares changed hands during trading, an increase of 39% from the average session volume of 37,747,590 shares. The stock had previously closed at $393.67.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analysts and notes highlighting Microsoft’s relatively durable free cash flow versus other hyperscalers are soothing investors worried about AI capex. Why Microsoft’s Cash Flow Sets It Apart from Other Hyperscalers
• Positive Sentiment: Microsoft’s large, funded partner programs (notably the multibillion‑dollar IREN deal) are progressing — IREN secured financing and management says Microsoft prepayments/backing reduce execution risk for deploying AI capacity. That validates Microsoft’s ability to source external infrastructure without bearing all capex. IREN Earnings Were Ugly—Is a Beautiful Future Already Funded?
• Positive Sentiment: Institutional flows show some buyers stepping in (reported stake increases by managers), suggesting bargain hunting after the pullback. Manning & Napier Advisors boosts Microsoft stake
• Positive Sentiment: Government partnerships (UK deepfake detection) reinforce Microsoft’s regulatory/trust positioning for AI tools — a reputational plus that can support enterprise adoption. Britain to work with Microsoft to build deepfake detection system
• Neutral Sentiment: Broader hyperscaler capex is surging (reports of ~$700B combined spending), a structural trend that supports long‑term AI revenue but puts near‑term pressure on free cash flow across the group. Tech AI spending may approach $700 billion this year, but the blow to cash raises red flags
• Neutral Sentiment: Infrastructure market evolution (bitcoin miners pivoting to lease power to AI customers) creates more supplier options for Microsoft to scale capacity without owning all sites — strategic but execution‑dependent. The Great Pivot: Bitcoin Miners Are Becoming AI’s Landlords
• Negative Sentiment: Stifel’s rare downgrade (Hold) and analyst concern about Google/Anthropic competition for Azure weighed on sentiment earlier this week and triggered part of the sell‑off. Microsoft Stock Gets a Rare Downgrade. AI Competition Is Heating Up for Azure.
• Negative Sentiment: Specific execution worries — slower Copilot adoption and signs of softer Azure acceleration in the quarter — remain key risk points investors are watching; these were central to the post‑earnings sell‑off. Microsoft (MSFT) Stock: Should You Buy After 22% Plunge?
• Negative Sentiment: Macro/market psychology: an AI‑led rotation has erased large amounts of Big Tech market value, amplifying volatility for Microsoft even when fundamentals look mixed. Big Tech sees over $1 trillion wiped from stocks as fears of AI bubble ignite sell-off

Wall Street Analysts Forecast Growth

MSFT has been the topic of a number of research reports. BMO Capital Markets reduced their target price on shares of Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a report on Thursday, January 29th. The Goldman Sachs Group reduced their price objective on Microsoft from $655.00 to $600.00 and set a “buy” rating on the stock in a research note on Thursday, January 29th. Royal Bank Of Canada restated an “outperform” rating and set a $640.00 price objective on shares of Microsoft in a research report on Thursday, January 29th. Stifel Nicolaus reiterated a “hold” rating and issued a $392.00 target price (down previously from $540.00) on shares of Microsoft in a report on Thursday. Finally, Robert W. Baird set a $540.00 target price on 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, thirty-nine have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $596.95.

Microsoft Stock Up 1.9%

The company has a current ratio of 1.39, a quick ratio of 1.38 and a debt-to-equity ratio of 0.09. The company has a 50-day simple moving average of $470.24 and a 200 day simple moving average of $496.99. The company has a market cap of $2.98 trillion, a P/E ratio of 25.09, a P/E/G ratio of 1.62 and a beta of 1.08.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, January 28th. The software giant reported $4.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.86 by $0.28. The firm had revenue of $81.27 billion during 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%. The business’s revenue was up 16.7% on a year-over-year basis. During the same period in the previous year, the firm earned $3.23 earnings per share. On average, equities analysts anticipate that Microsoft Corporation will post 13.08 EPS for the current year.

Microsoft Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Thursday, February 19th. Microsoft’s dividend payout ratio is currently 22.76%.

Insider Buying and Selling

In related news, EVP Takeshi Numoto sold 2,850 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $478.72, for a total value of $1,364,352.00. Following the transaction, the executive vice president owned 55,782 shares of the company’s stock, valued at $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 Securities & Exchange Commission, which is available through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of Microsoft stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total value of $6,266,880.00. Following 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

A number of hedge funds and other institutional investors have recently made changes to their positions in MSFT. IRON Financial LLC grew its position in Microsoft by 23.2% in the 3rd quarter. IRON Financial LLC now owns 6,510 shares of the software giant’s stock valued at $3,372,000 after acquiring an additional 1,225 shares in the last quarter. Wellington Capital Management Inc. acquired a new stake in shares of Microsoft during the second quarter worth about $9,941,000. Sound View Wealth Advisors Group LLC boosted its stake in shares of Microsoft by 2.6% in the second quarter. Sound View Wealth Advisors Group LLC now owns 94,120 shares of the software giant’s stock valued at $46,816,000 after purchasing an additional 2,373 shares during the period. Bank Pictet & Cie Europe AG grew its holdings in shares of Microsoft by 3.8% in the second quarter. Bank Pictet & Cie Europe AG now owns 922,524 shares of the software giant’s stock valued at $457,119,000 after purchasing an additional 33,382 shares in the last quarter. Finally, Weaver Capital Management LLC increased its stake in Microsoft by 14.0% during the 3rd quarter. Weaver Capital Management LLC now owns 18,340 shares of the software giant’s stock worth $9,499,000 after buying an additional 2,247 shares during the period. 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).