Microsoft (NASDAQ:MSFT) Earns Buy Rating from Analysts at Bank of America

Bank of America began coverage on shares of Microsoft (NASDAQ:MSFT) in a research report report published on Tuesday, Marketbeat reports. The firm issued a buy rating and a $500.00 target price on the software giant’s stock.

Several other brokerages have also commented on MSFT. Mizuho cut their price target on shares of Microsoft from $640.00 to $620.00 and set an “outperform” rating on the stock in a research note on Wednesday, January 21st. Wall Street Zen downgraded shares of Microsoft from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Oppenheimer reaffirmed an “outperform” rating on shares of Microsoft in a report on Thursday, January 29th. Citigroup reduced their target price on Microsoft from $660.00 to $635.00 and set a “buy” rating for the company in a report on Thursday, January 29th. Finally, Sanford C. Bernstein reissued an “outperform” rating and issued a $641.00 target price (down from $645.00) on shares of Microsoft in a research report on Thursday, January 29th. Two research analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $588.97.

Microsoft Stock Performance

Shares of Microsoft stock opened at $365.97 on Tuesday. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09. Microsoft has a 52 week low of $344.79 and a 52 week high of $555.45. The firm’s 50 day moving average is $411.42 and its two-hundred day moving average is $468.63. The firm has a market capitalization of $2.72 trillion, a P/E ratio of 22.89, a P/E/G ratio of 1.41 and a beta of 1.10.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings data on Wednesday, January 28th. The software giant reported $4.14 earnings per share for the quarter, topping the consensus estimate of $3.86 by $0.28. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The business had revenue of $81.27 billion during the quarter, compared to the consensus estimate of $80.28 billion. During the same quarter in the previous year, the firm earned $3.23 EPS. The company’s revenue was up 16.7% compared to the same quarter last year. Research analysts forecast that Microsoft will post 13.08 EPS for the current fiscal year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a yield of 1.0%. Microsoft’s dividend payout ratio is presently 22.76%.

Insider Buying and Selling at Microsoft

In other news, Director John W. Stanton purchased 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The stock was purchased at an average cost of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the acquisition, the director directly owned 83,905 shares of the company’s stock, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the firm’s stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the completion of the sale, the executive vice president owned 137,933 shares of the company’s stock, valued at approximately $56,486,322.16. The trade was a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microsoft

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Longfellow Investment Management Co. LLC grew its stake in shares of Microsoft by 51.3% during the 2nd 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 acquired a new stake in shares of Microsoft in the fourth quarter valued at about $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft in the fourth quarter valued at about $36,000. Bayforest Capital Ltd purchased a new stake in Microsoft during the third quarter worth about $38,000. Finally, 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. Institutional investors and hedge funds own 71.13% of the company’s stock.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bank of America reiterates conviction and sees roughly 30% upside for MSFT, reinforcing a bullish institutional view that supports longer-term buying interest. Bank of America Sees 30% Upside
• Positive Sentiment: Retail and options traders are piling into MSFT call options, signaling speculative bullish positioning that can amplify rallies on positive headlines. Investors Piling into Microsoft Call Options
• Positive Sentiment: Strategic wins — Microsoft teaming with NVIDIA on AI-for-nuclear projects and continuing datacenter expansion (new Denmark region) underline durable demand for Azure and AI infrastructure, supporting long-term growth narrative. Microsoft–Nvidia Nuclear Push Sparks ETF Opportunity Microsoft Opens New Datacenter Region In Denmark
• Neutral Sentiment: Internal HR retooling and leadership departures (diversity chief exit) are drawing attention but are mainly organizational items; they create short-term uncertainty around execution rather than direct revenue risk. Microsoft HR Overhaul
• Negative Sentiment: Reports say Microsoft has frozen hiring in major cloud and North American sales groups — a signal of cost control and potential growth recalibration that spooks investors focused on Azure momentum. Microsoft Freezes Hiring in Major Cloud, Sales Groups
• Negative Sentiment: Analyst skepticism and product execution concerns: UBS and others cut price targets or warn that Microsoft 365 Copilot adoption is weaker than hoped — this is the core near-term catalyst dragging multiples lower. Price Target Lowered on M365, Copilot Questions
• Negative Sentiment: Coverage and narrative risk from OpenAI disclosures and media coverage of a prolonged pullback (MSFT down sharply from peak, nearing 52‑week low) are increasing investor caution and volatility. OpenAI Flags Microsoft as ‘Top Risk’ MSFT Nears One-Year Low
• Negative Sentiment: Today’s broader market selloff — amplified by geopolitical (Iran) comments that pushed oil higher — is pressuring large-cap tech, contributing to MSFT’s decline independent of company fundamentals. Dow Jones Futures: Market Dives on Geopolitical Comments

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).