Microsoft (NASDAQ:MSFT) Shares Down 1.2% – Here’s What Happened

Microsoft Corporation (NASDAQ:MSFT)’s share price traded down 1.2% during mid-day trading on Monday . The stock traded as low as $359.90 and last traded at $368.57. 50,565,018 shares changed hands during trading, an increase of 34% from the average session volume of 37,770,855 shares. The stock had previously closed at $372.97.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Michael Burry disclosed December 2028 LEAP call options on Microsoft with strikes near $700, signaling a bullish long-term bet on the stock. Big Short Legend Michael Burry Just Bet Big on Microsoft
• Positive Sentiment: Several analysts argue the recent pullback is a buying opportunity, pointing to Microsoft’s strong cloud and AI momentum, including Azure growth and a rapidly expanding AI business. Is The Microsoft Stock Pullback A Buying Opportunity?
• Positive Sentiment: Microsoft expanded its AI and cybersecurity offerings through a new partnership with Commvault, which could support enterprise adoption across cloud customers. Microsoft Expands Operations With a New Strategic Partnership
• Neutral Sentiment: Commentary from bullish tech analyst Dan Ives and other strategists says the broader Big Tech selloff may be creating an opportunity, but this is mostly sentiment rather than a Microsoft-specific catalyst. Dan Ives Says the $3 Trillion Tech Wipeout Is a Buying Opportunity
• Neutral Sentiment: Multiple articles frame Microsoft as a high-quality dividend and AI compounder, but these are long-term thesis pieces rather than fresh business updates. Three Dividend Aristocrats to Buy and Hold in 2026
• Negative Sentiment: Microsoft is heading toward its worst month since 2000 after a steep June decline, driven by investor concern that massive AI infrastructure spending is pressuring margins before returns are visible. Microsoft’s US$570 billion rout sets up its worst month since 2000
• Negative Sentiment: Regulatory and legal overhangs are also weighing on sentiment, including an EU gatekeeper designation for Azure, an Italy antitrust probe into Microsoft 365/Copilot, and multiple securities class-action notices. Microsoft Faces EU Gatekeeper Move And Italy Antitrust Probe
• Negative Sentiment: Tipsters also reported Microsoft pulled 119 Edge extensions and that Xbox may be pausing new third-party Game Pass deals, which adds to concerns about product and gaming momentum. Microsoft Stock Slips After Pulling 119 Edge Extensions

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Barclays restated an “overweight” rating on shares of Microsoft in a report on Wednesday, June 3rd. DZ Bank reissued a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Dbs Bank decreased their price target on Microsoft from $678.00 to $573.00 in a research note on Thursday, May 7th. Phillip Securities raised Microsoft to a “buy” rating and set a $485.00 target price on the stock in a research report on Wednesday, May 13th. Finally, DA Davidson dropped their price objective on shares of Microsoft from $650.00 to $550.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Forty-one research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $560.86.

Microsoft Price Performance

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 stock has a market capitalization of $2.74 trillion, a price-to-earnings ratio of 21.94, a price-to-earnings-growth ratio of 1.34 and a beta of 1.11. The business’s 50 day simple moving average is $410.37 and its 200-day simple moving average is $420.98.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The company had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.46 earnings per share. Research analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

The firm also recently announced 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. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 1.0%. Microsoft’s payout ratio is presently 21.67%.

Insiders Place Their Bets

In related news, CEO Judson Althoff sold 15,500 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the transaction, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the sale, the executive vice president directly owned 47,468 shares of the company’s stock, valued at approximately $19,122,009.12. This represents a 8.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 23,762 shares of company stock worth $10,508,361. 0.03% of the stock is owned by company insiders.

Institutional Investors Weigh In On Microsoft

A number of institutional investors have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC lifted its holdings in Microsoft by 51.3% in the 2nd 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 last quarter. Bernzott Capital Advisors bought a new stake in shares of Microsoft in the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC acquired a new stake in Microsoft during the fourth quarter valued at approximately $36,000. Fairway Wealth LLC boosted its holdings in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after buying an additional 66 shares in the last quarter. Finally, LSV Asset Management acquired a new position in Microsoft in the fourth quarter worth approximately $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

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).