Microsoft Corporation (NASDAQ:MSFT) Stock Has Consensus Price Target of $592.15 According to Brokerages

Microsoft Corporation (NASDAQ:MSFT) has been given an average rating of “Moderate Buy” by the forty-nine analysts that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and forty-four have given a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $596.07.

A number of equities research analysts have issued reports on the company. Phillip Securities downgraded Microsoft from a “moderate buy” rating to a “hold” rating in a research note on Monday, October 12th. Benchmark reiterated a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. CLSA reissued an “outperform” rating on shares of Microsoft in a report on Thursday, July 30th. Rothschild & Co Redburn set a $440.00 price objective on shares of Microsoft in a report on Monday, September 21st. Finally, Evercore upgraded shares of Microsoft from an “underperform” rating to an “outperform” rating in a research report on Monday, October 5th.

Insider Buying and Selling at Microsoft

In other news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by insiders.

Hedge Funds Weigh In On Microsoft

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Montgomery Financial Services LLC purchased a new position in shares of Microsoft in the second quarter valued at about $26,000. Frankly Finances LLC bought a new position in shares of Microsoft during the second quarter valued at about $35,000. Bard Associates Inc. purchased a new stake in shares of Microsoft during the second quarter worth about $37,000. PMV Capital Advisers LLC purchased a new stake in shares of Microsoft during the second quarter worth about $38,000. Finally, Fiduciary Advisors Inc. grew its stake in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after purchasing an additional 34 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Trading Down 0.1%

Shares of NASDAQ:MSFT opened at $531.01 on Monday. The company has a market cap of $3.94 trillion, a P/E ratio of 29.57, a PEG ratio of 1.68 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft has a 1 year low of $349.20 and a 1 year high of $551.15. The stock’s fifty day moving average price is $511.18 and its 200-day moving average price is $437.96.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, October 28th. The software giant reported $4.89 earnings per share for the quarter, beating analysts’ consensus estimates of $4.71 by $0.18. The company had revenue of $92.28 billion for the quarter, compared to the consensus estimate of $90.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s revenue for the quarter was up 18.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $4.13 earnings per share. Sell-side analysts expect that Microsoft will post 19.66 earnings per share for the current year.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio is 20.27%.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft reported earnings of $4.89 per share versus the $4.71–$4.72 consensus and revenue of $92.28 billion, up 19% year over year and above estimates of approximately $90.6 billion. Net income increased 32%, while the company extended its streak of record quarterly revenue. Microsoft Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Azure growth accelerated to 48%, generating approximately $33.2 billion in quarterly revenue. Stronger-than-expected cloud demand suggests Microsoft’s investments in artificial intelligence and Copilot-related services are beginning to translate into significant sales and profit growth. Microsoft Azure Revenue Surges
• Neutral Sentiment: Microsoft disclosed that commercial arrangements with OpenAI produced roughly $10 billion of revenue during the quarter, highlighting the value of the partnership but also the company’s substantial financial dependence on a single AI ecosystem. Microsoft Recorded $10 Billion in Revenue From OpenAI
• Negative Sentiment: Microsoft lowered its 2026 capital-expenditure forecast to $170 billion from $175 billion, citing delays in third-party capacity. The reduction may ease cash-flow pressure, but it also raises concerns that infrastructure constraints could limit Azure growth and delay returns on AI investment. Microsoft Cuts Capex Forecast on AI Capacity Delays
• Negative Sentiment: The company is offering voluntary buyouts to roughly 60,000 employees while spending heavily on data centers. Although the effort could improve long-term efficiency, investors may view it as evidence that Microsoft is managing mounting AI-related costs. Rising interest rates also pose a valuation risk for the high-growth technology sector.

About Microsoft

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.