Microsoft (NASDAQ:MSFT) Downgraded to Hold Rating by Melius Research

Microsoft (NASDAQ:MSFT) was downgraded by analysts at Melius Research from a “buy” rating to a “hold” rating in a report released on Monday.

Other analysts have also recently issued research reports about the stock. Raymond James Financial cut their price target on shares of Microsoft from $630.00 to $600.00 and set an “outperform” rating on the stock in a report on Thursday, October 30th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $641.00 target price (down previously from $645.00) on shares of Microsoft in a research note on Thursday, January 29th. Wedbush reduced their price target on shares of Microsoft from $625.00 to $575.00 and set an “outperform” rating on the stock in a research report on Thursday, January 29th. Wells Fargo & Company lowered their price objective on shares of Microsoft from $630.00 to $615.00 and set an “overweight” rating for the company in a report on Thursday, January 29th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on Microsoft from $630.00 to $575.00 and set a “buy” rating on the stock in a research report on Thursday, January 29th. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $596.95.

Microsoft Trading Up 2.2%

Shares of Microsoft stock traded up $8.99 during trading on Monday, reaching $410.13. 6,939,951 shares of the stock were exchanged, compared to its average volume of 36,792,461. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09. The firm has a market cap of $3.05 trillion, a price-to-earnings ratio of 25.56, a price-to-earnings-growth ratio of 1.57 and a beta of 1.08. Microsoft has a 1 year low of $344.79 and a 1 year high of $555.45. The stock’s fifty day moving average is $468.42 and its 200 day moving average is $496.10.

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

Insider Activity

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 transaction, the executive vice president owned 55,782 shares in the company, valued at $26,703,959.04. The trade was a 4.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Judson Althoff sold 12,750 shares of the stock in a transaction dated 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 sale, the chief executive officer directly owned 129,349 shares in the company, valued at $63,577,620.48. This trade represents a 8.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.03% of the stock is owned by insiders.

Institutional Investors Weigh In On Microsoft

Several institutional investors and hedge funds have recently added to or reduced their stakes in MSFT. 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 worth $29,000 after purchasing an additional 20 shares during the period. Bernzott Capital Advisors bought a new position in Microsoft in the 4th quarter worth $34,000. Bayforest Capital Ltd purchased a new stake in Microsoft in the 3rd quarter worth $38,000. Fairway Wealth LLC raised its holdings in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after acquiring an additional 66 shares during the period. Finally, LSV Asset Management purchased a new position in shares of Microsoft in the fourth quarter valued at about $44,000. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Barclays reiterated a “Buy” on MSFT, reaffirming institutional support that can stabilize sentiment after last week’s tech weakness. Microsoft Corp: Barclays Gives a Buy Rating
• Positive Sentiment: Many Wall Street firms still rate MSFT a buy and the recent Quiver summary shows a wide range of bullish price targets (median around $600), providing a potential upside anchor for the stock. Microsoft Stock (MSFT) Opinions on Stifel Downgrade
• Positive Sentiment: Multiple analyst and research pieces highlight Azure and AI‑driven revenue (including Copilot and cloud demand) as the core growth engine supporting margins and long‑term earnings. Those fundamentals underpin investor conviction despite near‑term noise. AI Eating Software Is Just Wrong; Let’s Look At Microsoft
• Neutral Sentiment: Big‑tech momentum is moderating after a week that erased roughly $1 trillion from the group; Microsoft is moving largely with the sector rather than on idiosyncratic news. That keeps trading range dynamics in play. Big Tech stocks are treading water after $1 trillion sell-off week
• Neutral Sentiment: Third‑party integrations (e.g., a press release about Abaxx delivering market data into Microsoft Excel) highlight ongoing ecosystem demand for Excel/Office capabilities but are low impact for MSFT’s market valuation. Abaxx Exchange Partners with ipushpull to Deliver Real-Time Market Data Directly into Microsoft Excel
• Negative Sentiment: A Stifel downgrade to “Hold” with a $392 target sparked a sharp short‑term selloff and amplified concerns about AI capex versus near‑term growth — a reminder that bearish research can trigger outsized moves in large caps. Microsoft Stock (MSFT) Opinions on Stifel Downgrade
• Negative Sentiment: Fresh reports of insider sales (multiple senior executives have sold shares recently) and some hedge‑fund stake reductions have added to headline risk and may weigh on sentiment until earnings/catalysts reassert fundamentals. Microsoft Stock (MSFT) Opinions on Stifel Downgrade
• Negative Sentiment: Broader software/AI sector volatility — including recent reports of a software bear market and rotation out of last year’s winners — keeps downside risk elevated despite MSFT’s strong metrics. Software Bear Market: 3 Stocks With 47% to 63% Upside, According to Wall Street

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).